{"id":158717,"date":"2025-06-04T23:15:14","date_gmt":"2025-06-04T23:15:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/158717\/"},"modified":"2025-06-04T23:15:14","modified_gmt":"2025-06-04T23:15:14","slug":"billionaire-ray-dalio-warns-of-economic-heart-attack-as-debt-crisis-escalates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/158717\/","title":{"rendered":"Billionaire Ray Dalio warns of ‘economic heart attack’ as debt crisis escalates"},"content":{"rendered":"\n

Billionaire Ray Dalio warns of ‘economic heart attack’ as debt crisis escalates<\/a> originally appeared on TheStreet<\/a>.<\/p>\n

Billionaire investor Ray Dalio issued a dire warning on June 4 about the U.S. economy, stating that it is on the verge of suffering an “economic heart attack” due to unsustainable national debt. In a post on X and a summary of his new book, “How Countries Go Broke: The Big Cycle,”<\/p>\n

He compared the debt system to a circulatory system that is clogged with waste. When debt service becomes an impediment to essential expenditures, and Chinese, Japanese, and even U.S. investors refuse to buy U.S. bonds<\/a>, he warned, the government must either borrow again or print money\u2014neither outcome is desirable.<\/p>\n

In the case of the latter outcome, it leads to inflation and the debasement of the dollar. “This dynamic leads to a self-reinforcing debt, money-printing, and inflation spiral,” Dalio wrote, while describing the current government trajectory as a textbook example of a country headed for fiscal collapse.Dalio also believes Bitcoin might get more traction in such a crisis.<\/p>\n

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He said, “Most countries have similar debt and deficit problems. The UK, EU, China, and Japan all do. That is why I expect a similar debt and currency devaluation adjustment process in most countries, which is why I expect non-government produced monies like gold and bitcoin to do relatively well.”<\/p>\n<\/blockquote>\n

Dalio explained that the U.S.<\/a> is $30 trillion in debt, with debt service projected at $10 trillion in 2023\u2014that is twice what the U.S. will receive in revenue from taxes in a year.<\/p>\n

Dalio predicted that without immediate legislative intervention, the U.S. economy may face a crisis in three to five years. His resolution is a “3 percent deficit plan” involving a combination of spending reductions (tax cuts), some degree of higher taxation, and lower interest rates.<\/p>\n

Echoing concerns about America’s fiscal trajectory, Senator Cynthia Lummis<\/a> put forward a radical alternative. Lummis has said multiple times that “The BITCOIN Act is the only way to solve our nation’s $36T debt.”<\/p>\n

However, in a recent interview with Bloomberg Crypto<\/a>, Lummis stated that a<\/a> Bitcoin Reserve of one million BTC (almost 5% of the total), if held for twenty years, could, over time, erase half of the U.S. debt.<\/p>\n

Story Continues <\/p>\n

She said, “My purpose for a strategic Bitcoin reserve is to set it up, have a million Bitcoin, 5% of all Bitcoin, hold it for 20 years, and it will eliminate half of the US debt.”<\/p>\n

Interestingly, New York City Mayor Eric Adams<\/a> has also recently proposed a Bitcoin bond, named BitBond<\/a>, to address the U.S. debt crisis.<\/p>\n

Billionaire Ray Dalio warns of ‘economic heart attack’ as debt crisis escalates<\/a> first appeared on TheStreet on Jun 4, 2025<\/p>\n

This story was originally reported by TheStreet<\/a> on Jun 4, 2025, where it first appeared.<\/p>\n","protected":false},"excerpt":{"rendered":"Billionaire Ray Dalio warns of ‘economic heart attack’ as debt crisis escalates originally appeared on TheStreet. Billionaire investor…\n","protected":false},"author":2,"featured_media":158718,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,67146,67145,1700,12549,16,15],"class_list":{"0":"post-158717","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-debt-crisis","10":"tag-debt-service","11":"tag-economy","12":"tag-ray-dalio","13":"tag-uk","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114627642968139418","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/158717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=158717"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/158717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/158718"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=158717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=158717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=158717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}