Dubai, United Arab Emirates – Hedge fund Titan Raydario issued new warnings about the US economy, warning of disastrous consequences if the Trump administration does not cut the country’s debt.
“If I was a doctor and I was talking to you about your condition, I would tell you, this is very serious now. All of these are big issues,” Dario said in the World Government. In Dubai, who spoke to CNBC’s Dan Murphy at the summit. “All you need to do is cut the deficit from about 7.5% of GDP to 3% of GDP. You can do that. Being healthier, the real problem is political issues. is.”
The US total debt was approximately $36.22 trillion as of February 11, with $28.8 trillion being the case for public citizens in the form of securities owned by individuals, businesses, state or local governments, Federal Reserve Banks and foreign governments. It existed as a debt held. Other entities outside the US government.
High debt means that the government spends more on interest payments and is more economically vulnerable in the event of a future economic crisis. It also leads to higher inflation and puts a strain on future generations.
“I want to warn people, I want to warn government officials,” said the founder of billionaire Bridgewater Associates. “I want to help, you know, so I feel like a doctor, and I’ll say everyone politically… If this doesn’t happen, we’ll know You know, or you know, or you know a bond market heart attack, and you know who is responsible because it can happen.”
“So you need the same kind of discipline as I say to you, OK, you need to change the way you eat, you need to change your exercise routine, you need to You need to do these things.”
Dario stressed that the government should take responsibility and that leaders should make a pledge to reduce the US budget deficit from 7.5% of GDP or resignation to 3%.
When asked what his message was to the Trump administration, Dario replied:
“I think they are aware of the problem, and how do you reduce costs in the actions that are being taken? How do you increase productivity? That’s… because you know. , how much can we actually see?
Dario also says that when the debtor needs to borrow money to pay the debt repayment, the debt death spiral is part of that cycle, which accelerates, and then everyone sees it , they don’t see it,” he warned of private credit debt. T is where we are approaching. ”
Dario’s Bridgewater Associates is one of the largest hedge funds in the world. According to the U.S. Securities and Exchange Commission, as of September 2023 there were $171.7 billion in assets under management.
