Trillions in Debt Payments Could Break U.S. Economy, Ray Dalio Predicts

Legendary investor Ray Dalio has issued a stark warning about the trajectory of U.S. government finances, suggesting the country is drifting toward a series of severe economic shocks unless its debt spiral is urgently addressed.

In a June 3 summary of his new book, How Countries Go Broke: The Big Cycle, Dalio outlined a bleak outlook, projecting that debt servicing costs could balloon to as much as $55 trillion within a decade—multiples higher than the government’s annual revenue. Even near-term, interest payments alone could reach $1 trillion a year, eating up a fifth of federal income and worsening deficits.

Dalio argues that rising rates are compounding the risk by making U.S. debt less attractive to investors, potentially triggering a cycle of weaker demand and even higher borrowing costs. “This is how nations unravel financially,” he cautioned.

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The Bridgewater Associates founder emphasized that similar collapses have happened throughout history, yet current policymakers remain complacent—convinced that the existing financial order is immune to collapse. He called for a more conservative fiscal stance, warning that failure to act now could leave the country dangerously exposed in future crises.

Dalio’s concerns arrive as Washington faces backlash over the recently passed “One Big Beautiful Bill,” which critics say expands the deficit further. Voices like Elon Musk and prominent fiscal hawks have joined Dalio in raising alarms about a lack of financial discipline at the federal level.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.