"Buy Gold and Bitcoin Now" ... Wall Street Legend Ray Dalio's Chilling Warning

[Financial News] Ray Dalio, the founder of Bridgewater Associates and a Wall Street legend, has issued a warning over the massive debt problem facing the Federal government of the United States. He said that if the current fiscal deficit trend does not improve, a severe national debt crisis could become a reality within the next three years.
Dalio recently criticized the fiscal health of the United States on Social media from the perspective of the macroeconomic dynamics known as the "Big Cycle." He projected that this year, federal revenue will reach only $5.5 trillion, while spending will amount to $7.5 trillion, resulting in a huge fiscal deficit of $2 trillion.
The scale of the repayment burden is especially alarming. Adding this year's expected $1 trillion in interest costs to about $10 trillion in principal coming due means the federal government faces total debt service obligations of nearly $11 trillion. That is roughly twice the government's annual revenue.
Dalio pointed out that the surge in debt service costs would inevitably weaken investor demand for bonds. In the end, the government would be forced either to accept higher interest rates or to have the central bank print money to pay off its debts. He said this would inevitably trigger a vicious cycle of currency depreciation and severe inflation.
He added, however, that there is still room to delay or avoid a crisis if the fiscal deficit ratio to gross domestic product falls from the current level of about 7% to the 3% range, or if there is no major external shock.
He also urged investors to move away from traditional investment formulas, noting that major economies such as the United Kingdom, China and Japan are also facing similar debt problems. He said gold and Bitcoin, as "non-government-issued money," are likely to outperform as legal tender loses value.
Dalio advised, "You should diversify into countries and asset classes with healthy income statements and balance sheets and limited geopolitical conflict." He added, "It is better to reduce exposure to debt-based assets such as bonds and allocate 10% to 15% of assets to gold, with a small amount to Bitcoin, to offset portfolio risk."


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