The founder of Bridgewater, Ray Dalio, says that it will become more difficult to sell American debts

The founder of Bridgewater Associates has long noticed the budgetary trajectory of America is on a dangerous route due to its national debt of $ 37.5 billions of dollars – with additional interest payments of $ 1.13 billion of dollars for the year 2025 to date.

But Dalio, speaking to the future China Global Forum in Singapore this week, does not think that the United States is able to withdraw its expenses.

Economists are not concerned about the amount of American national debt in itself, plus its debt / GDP ratio. If a country borrows at a rate that exceeds its growth, investors at a given time begin to question the safety of the debt yields they hold.

This could either lead to the end of investors to buy the debt, or require higher interest payments to compensate for the risk. Of course, a central bank in the country could also help this last option with quantitative relaxation – print essentially more money to reduce the value of the debt.

Governments therefore have two options to rebalance their debt to GDP: reduce spending or increase economic growth.

Dalio, 76, seems to be of the opinion that the reduction in expenses is not an option for the American government, it “cannot reduce its expenses for various reasons,” he said during the panel, according to Bloomberg.

The burden of the national debt of America is not attributable to one side of the political spectrum or on the other: it was added by the administrations of the two parties. That said, President Trump One Big Beautiful Bill Act has raised his eyebrows, even among his supporters.

The Congressional Budget Office (CBO) estimates that it will add around 3.4 billions of dollars to the national debt, well between 2025 and 2035, the prices will compensate for 3.3 billions of dollars.

Indeed, CBO projections for 2025 estimate that the United States will spend about 7 dollars billions this year, but will only bring in 5 dollars. This difference widens over time, going to $ 10.7 billions of expenditure by 2035 and 8.03 billions of dollars generated in income.

“The world market does not have the same type of demand for this debt, which creates an imbalance in supply demand,” said Dalio. He did not blame a government policy or another, claiming that debt is only “human nature”.

“A greater achievement of problems”

Despite the concerns about the Trump administration policies, the White House recognized the question of national debt and began to boast of income -generating ideas to compensate for it. The prices, of course, are one of them.

Another is Trump’s “gold cards”, a visa policy that would charge for rich $ 5 million immigrants each for the advantages of the green card privileges “more a way to citizenship”. Trump previously suggested that he could sell millions of cards, adding: “A million cards were worth 5 billions of dollars, and if you sell 10 million cards, which represents a total of 50 billions of dollars. Well, we have 35 billions of dollars of debt, so it would be good. ”

He noted that he would have 15 billions of dollars “left” if he managed to sell 10 million cards, adding: “He can be assigned to reduce the deficit, but that could actually be more money than that.”

While the mathematics of the plan leave suspended questions (the majority of millionaires are already living in the United States and, therefore, the volume of people with a net value of at least $ 5 million to buy a single card can be more difficult to drum) economists are nevertheless pleasantly surprised by the intention of increasing government income.

While the Wharton teacher, Joao Gomes Fortune: “You cannot deny that (Trump and his administration) bring strange forms of income that change the image of debt.”

Dalio added that he also saw a more sincere planning of the White House, adding: “Speaking with the secretary Bessent and the people of the administration, there is a greater achievement of these problems and a greater proactivity to be able to deal with them than before, by many.”

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