Ray Dalio Warns of Looming US Debt Crisis and Urges Gold and Bitcoin Allocations

A prominent investor is urging people to shift away from bonds and toward gold and Bitcoin (BTC) to shield against a potential major US debt problem.

Ray Dalio, founder of Bridgewater Associates, made the comments in a LinkedIn post published Friday, August 21st, 2026.

He linked recent Treasury actions, including Secretary Scott Bessent’s announcement of debt buybacks likely exceeding $4 billion, to a broader pattern signaling trouble ahead.

The US is spending about 40% more than it takes in, with this year’s revenue around $5.5 trillion and expenses near $7.5 trillion.

If the US government were a business, Dalio noted that debt service payments would total about $11 trillion—roughly 200% of annual revenue.

Dalio highlighted that the government’s financial condition is at an inflection point.

“I am confident that the government’s financial condition is at an inflection point. If this is not dealt with now, the debts will build up to levels where they can’t be managed without great trauma.”

He outlined a three-part approach to reduce the deficit to 3% of GDP by cutting spending, raising tax revenue, and lowering interest rates, all done concurrently to avoid trauma.

… Continue reading the full article at the original source below.