Ray Dalio Warns U.S. Could Face a Debt Crisis Within Three Years

Ray Dalio is warning that the U.S. could face a debt crisis within the next three years if current fiscal trends continue.
His concern centers on government spending growing faster than revenue while Treasury issuance keeps rising.
At the same time, weaker foreign demand for U.S. government debt could make that financing increasingly expensive.
If investors require higher yields to absorb new Treasury supply, interest costs can rise further and put even more pressure on the federal budget.
That creates a difficult feedback loop: larger deficits require more borrowing, more borrowing can push yields higher, and higher yields increase future interest expenses.
Dalio has repeatedly argued that this type of debt dynamic can eventually force policymakers toward some combination of fiscal tightening, financial repression, currency weakness or monetary accommodation.
The timing is uncertain, but the core risk is clear: the U.S. is becoming increasingly dependent on strong demand for a rapidly growing supply of government debt.