Dalio warns of debt crisis, saying Bitcoin and gold might do “relatively well.” Top leaders also echo that Bitcoin might help tackle debt.
by Anushka Basu
The Street
Billionaire investor Ray Dalio issued a dire warning on June 4 about the U.S. economy, stating that it is on the verge of suffering an “economic heart attack” due to unsustainable national debt. In a post on X and a summary of his new book, “How Countries Go Broke: The Big Cycle,”
He compared the debt system to a circulatory system that is clogged with waste. When debt service becomes an impediment to essential expenditures, and Chinese, Japanese, and even U.S. investors refuse to buy U.S. bonds, he warned, the government must either borrow again or print money—neither outcome is desirable.
Bitcoin and gold might rally
In the case of the latter outcome, it leads to inflation and the debasement of the dollar.