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Ray Dalio warns that mounting U.S. debt problems could lead to ‘shocking developments'

CONVERGE LIVE - Singapore, March 12-13 2025 - Request invitation

Bridgewater founder Ray Dalio on Wednesday warned that a significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy.

It is the latest in a series of stark warnings about America's mounting debt from the U.S. hedge fund billionaire, with the country's national debt currently standing at more than $36.2 trillion.

"The first thing is the debt issue, we have a very severe supply-demand problem," Dalio told CNBC's Sara Eisen at CONVERGE LIVE in Singapore. "[The U.S. has] to sell a quantity of debt that the world is not going to want to buy."

He said this was imminent and of "paramount importance."

The U.S. deficit needs to go from a projected level of 7.2% of gross domestic product to about 3% of GDP, Dalio said.

"That's a big deal. You are going to see shocking developments in terms of how that's going to be dealt with," he added.

Asked whether the U.S. debt problem could lead to a period of austerity, Dalio said the issue could result in a restructuring of the debt, the U.S. applying pressure on other countries to buy the debt, or even cutting off payments to some creditor countries.

"Just as we are seeing political and geopolitical shifts that seem unimaginable to most people, if you just look at history, you will see these things repeating over and over again," Dalio said. "We will be surprised by some of the developments that will seem equally shocking as those developments that we have seen."

His comments, made on the same panel as Salesforce CEO Marc Benioff, come amid a tariff roller-coaster ride for markets in recent days.

Trade policy uncertainty has added to a sense of unease on Wall Street, with

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