Ray Dalio Sees Japan Debt Crisis Coming to America: 2 Assets Are His Escape Plan
Ray Dalio says the Japan debt story is about to repeat in America, and Japanese bondholders lost most of their money the first time. He wants investors out of government bonds and into gold and Bitcoin.
The Bridgewater Associates founder made the case on Friday. He puts a US debt crisis three years away, give or take two, unless Washington changes course.
Ray Dalio Japan Debt Losses Are the Real Warning
Most coverage led with his three-year clock. However, the harder evidence sits in Japan, where this process already ran its full course.
Start with 2013. That March, the Bank of Japan owned 11.6% of all Japanese government bonds. By March 2023, it owned 53.3%.
The central bank printed money and bought that debt because private buyers would not. That is the exact step Dalio warns about.
In turn, bondholders paid for it. By his math, Japanese government bonds lost 51% against dollar debt after 2013. Against gold, they lost 76%.
Meanwhile, the bill is still arriving. Japan's four biggest life insurers now sit on roughly $96 billion in paper losses on government bonds.
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