Bridgewater Associates founder Ray Dalio is warning of severe economic and financial consequences after US President Trump’s budget bill passed Congress. In a post on the social media platform X, the billionaire says that Trump’s “One Big Beautiful Bill” will increase the US national debt from about $230,000 per American household to $425,000 per American household over the next decade. The ballooning national debt will have severe ramifications, according to Dalio. “Now that the budget bill has passed Congress, we can see what the projections look like for deficits, government debt, and debt service expenses. In brief, the bill is expected to lead to spending of about $7 trillion a year with inflows of about $5 trillion a year, so the debt, which is now about 6x of the money taken in, 100% of GDP, and about $230,000 per American family, will rise over ten years to about 7.5x the money taken in, 130% of GDP and $425,000 per family. That will increase interest and principal payments on the debt from about $10 trillion ($1 trillion in interest, $9 trillion in principal) to about $18 trillion (of which $2 trillion is interest payments), which will lead to either a big squeezing out (and cutting off) of spending and/or unimaginable tax increases, or a lot of printing and devaluing of money and pushing interest rates to unattractively low levels.” Dalio believes the remedy to the looming fiscal crises is to cut spending and raise taxes to lower the annual deficit to gross domestic product (GDP) ratio. “This printing and devaluing is not good for those holding bonds as a storehold of wealth, and what’s bad for bonds and US credit markets is bad for everyone because the US Treasury market is the backbone of all capital markets, which are the backbones of our economic and social conditions. Unless this path is soon rectified to bring the budget deficit from roughly 7% of GDP to about 3% by making adjustments to spending, taxes, and interest rates, big, painful disruptions will likely occur.” Follow us on X, Facebook and Telegram
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&nbsp Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Billionaire Ray Dalio Warns ‘Painful Disruptions’ Incoming as US National Debt Set To Shatter $425,000 per Household appeared first on The Daily Hodl.

The US dollar just had the worst first-half-year performance in over 50 years and is likely to weaken even more, according to the financial data and analytics firm S&P Global. In a new report, S&P Global says the US dollar is rapidly weakening due to tariffs, threats to the Federal Reserve’s independence, rising US debt and inflation fears. “The US dollar index, which tracks the dollar against a basket of its currency peers, has fallen about 10.8% since the start of the year. That marks its worst first six months of a year since 1973. The greenback now sits at its lowest levels since February 2022 and stands to weaken further, according to currency strategists.” The US dollar’s plummeting began after US President Donald Trump took office in January. Says Derek Halpenny, managing director and head of research with MUFG Bank, “The trigger for the move may have been uncertainties over the policy outlook, on trade in particular, but the erratic nature of policy formation as well.” Elias Haddad, a global macro strategist with Brown Brothers Harriman, says that the US dollar is suffering from various factors that are likely to cause “structural drag” over the long term. “By all measures, the dollar dominates on the international stage as a store of value, medium of exchange, and unit of account. However, loss of confidence in US trade, fiscal, and security policies, and political meddling with the Fed’s independence threaten to accelerate the dollar’s declining role as the primary reserve currency.” The US Dollar Index (DXY) is trading at 97.03 at time of writing. Follow us on X, Facebook and Telegram
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&nbsp Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post US Dollar Primed To Weaken Further Amid the Worst First-Half-Year Performance Since 1973: S&P Global appeared first on The Daily Hodl.

Bridgewater Associates founder Ray Dalio says the US could be headed to a financial crash because political leaders are cautious against taking aggressive actions to address America’s budget deficit. In a post on the social media platform X, the billionaire says senior members of both the Democratic and Republican parties agree that the US needs to reduce its deficit to 3% of the GDP (gross domestic product). But he says the so-called absolutist policies prevent the adoption of measures such as tax increases and cuts to benefits that can address the debt problem. “They explained the absolutist policies that must exist and those are that you must make statements like I will absolutely pledge not to raise your taxes or I will absolutely pledge not to reduce your benefits.” Dalio says it is clear that the US is unlikely to change its debt trajectory and could face painful consequences. He says political leaders may be thrown out by their constituents and face pressure from their parties, so they find it impossible to make compromising statements and actions that can balance the revenue and expenses to produce a good budget. “That’s the equivalent of saying I will absolutely pledge not to change the trajectory we’re on in order to have a better set of circumstances than the likely financial crash that we’re going to have.” Follow us on X, Facebook and Telegram
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&nbsp Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Billionaire Ray Dalio Says US Unlikely To Change Debt Trajectory and Avoid a Financial Crash – Here’s Why appeared first on The Daily Hodl.