The founder of Bridgewater, Ray Dalio, warned Wednesday that a significant problem demand with respect to US debt could have a deeply disruptive impact on the global economy.
It is the last of a series of raw warnings about the growing debt of the United States of the multimillionaire of the US Coverage Fund, with the national debt of the country currently in more than $ 36.2 billion.
“The first thing is the debt problem, we have a very serious problem due to supply demand,” Dalio told Sara Eisen from CNBC in Converge Live in Singapore. “[The U.S. has] Sell ​​an amount of debt that the world will not want to buy. “
He said this was imminent and “primary importance.”
The American deficit must go from a projected level of 7.2% of the gross domestic product to approximately 3% of GDP, Dalio said.
“That is a big problem. You will see shocking developments in terms of how it will be,” he added.
When asked if the United States debt problem could lead to a period of austerity, Dalio said the problem could result in a debt restructuring, the United States applies pressure on other countries to buy debt, or even reduce payments to some creditors.
“Just as we are seeing political and geopolitical changes that seem unimaginable for most people, if you only look at the story, you will see these things repeating again and again,” Dalio said. “We will be surprised by some of the developments that will seem equally shocking as those developments we have seen.”
Your comments, made on the same panel as Salesforce CEO Marc Benioff, comes in the middle of a roller mountain of rates for markets in recent days.
The uncertainty of commercial policy has joined a sense of restlessness in Wall Street, with investors concerned with the impact of a commercial war of beer elaboration in the global economy.
The commercial policies of President Donald Trump, which are designed to rebalance the economic order in favor of the United States, include tariffs against Canada, Mexico and China.
Tariffs ‘to cause the fight between countries’
When asked about the possible consequences of a commercial dispute over low heat, Dalio described the current state of things as “an extension of the patterns of history,” and highlighted Germany from the 1930s as an example.
Dalio said there was a reduction in debt at that time, along with an increase in tariffs to increase income and an accumulation of its national base. “Be a nationalist, be a protectionist, be a militarist. That is the way in which these things operate,” he said.
“The problem is really the confrontation of all this, the struggle of all this. Therefore, tariffs will cause struggles between countries,” said Dalio, adding that he was not necessarily talking about a military confrontation.
“But think of us, Canada, Mexico, China and all those types of struggle. There will be struggles, and that will have consequences, and I think that is the main thing to pay attention,” he said.
Dalio said he was sharing those points of view as a politically neutral observer, comparing his approach to that of a mechanic or doctor. “I am not an ideologist,” he added.
