Billionaire investor Ray Dalio, founder of Bridgewater Associates and author of Principles for Dealing with the Changing World Order, has repeatedly warned that the world is now in the late stages of a major debt cycle — and that the next financial shock is more likely to come from sovereign debt than from Wall Street excess.
In an October 2025 interview, Dalio said the U.S. is facing “very, very dark times” driven by record federal debt, deep political divisions, and rising geopolitical tension. He warned that surging public debts, rising interest costs, and growing reliance on central-bank balance sheets are the key late-cycle risks investors should be watching.
