The billionaire investor Ray Dalio has expressed concerns that the U.S. economy is in a dire fiscal situation. His comments come after the U.S. Senate passed a bill to keep spending until the next 45 days to avoid a shutdown. The national debt of the U.S. economy touched a record high of $33 trillion for the first time. The U.S. debt rose by $1.2 billion every hour in the last three weeks. The debt rose by nearly half a trillion dollars in 19 days reaching an unprecedented high of $33.521 trillion.
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There has been a 50% rise in federal expenditures between 2019 and 2021, according to data from the U.S. Treasury Department. The development sets dangerous trends for the US economy and hamper its growth in the coming years.
Ray Dalio Predicts What Could Happen to the U.S. Economy Next
Billionaire Ray Dalio predicted that the US economy will enter a debt crisis soon which could spiral out of control. “We’re going to have a debt crisis in this country,” said Dalio to MoneyControl. He added that if the ongoing debt crisis is not brought under control, it could have devastating consequences on the U.S. economy.
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The growing debt and BRICS countries not using the U.S. dollar for trade is a recipe that’s brewing for disaster. If BRICS stops using the U.S. dollar, America will have fewer means to fund its deficit. This would mean that the U.S. will no longer have ways to import inflation to other countries. Read here to know how many sectors in the U.S. will be affected if BRICS stops using the dollar.
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If such a scenario arises, day-to-day prices in the U.S. could skyrocket leading to hyperinflation. The average American will find it hard to sustain in the inflation era while wages fail to catch up. In conclusion, the future of the economy looks bleak if the U.S. fails to control the debt crisis.