Dalio warns: U.S. debt surge resembles the situation before World War II

Jin10 data October 10th, Bridgewater founder Dalio reiterated his warning about the rapid growth of U.S. government debt, believing it is brewing a situation “very similar to the eve of World War II.” He stated that when debt increases relative to income, it is like plaque in the arteries, subsequently beginning to squeeze spending. Dalio has long warned of the risks of spiraling U.S. debt, insisting last month that it poses a “threat to the monetary order.” He blamed politicians from both parties and called for a combination of measures to address what he termed the “deficit/debt bomb,” including increasing taxes and cutting spending. Dalio believes that the surging debt is only part of the problem. He noted that the deteriorating global conflict and wealth inequality are also creating a “very concerning” environment.