It looks like entrepreneur Ray Dalio has a dire warning for the Trump administration. The Bridgewater Associates founder warned on Friday that the United States’ inability to cut back on spending and prevent the piling of debt is putting the monetary order at risk.
According to a Bloomberg News report, Dalio noted that the U.S. will spend about $7 trillion this year and earn only $5 trillion, due to interest payments and roll-over of maturing borrowings, “this means you have to sell $12 trillion in debt,” he reportedly said, without giving a timeframe, during the FutureChina Global Forum in Singapore.
“The market in the world does not have that same sort of demand for that debt, and that creates a supply-demand imbalance,” he noted and attributed the credit to “human nature.”
“You’re seeing the threat to the monetary order,” Dalio said. “Other factors together will determine whether we’re seeing the end of the entire U.S. empire.”
The Bloomberg report stated that Dalio’s fellow panelist, Ng Kok Song, founding partner of Avanda Investment Management, noted the deficit and other issues were putting the U.S. dollar’s strength and supremacy at risk.
Dalio reportedly said that Trump administration officials, including Treasury Secretary Scott Bessent, are taking “certain actions” to maintain the dollar’s dominance.
As of mid-2025, the U.S. national debt has surpassed $37 trillion, marking an unprecedented milestone in the country’s fiscal history. This figure includes both debt held by the public—about $29.6 trillion—and intragovernmental holdings, which account for roughly $7.3 trillion. The rapid growth of the debt reflects years of persistent budget deficits fueled by increased government spending on mandatory programs like Social Security, Medicare, and Medicaid, as well as interest payments on the existing debt. The COVID-19 pandemic, economic stimulus packages, and ongoing geopolitical challenges have further accelerated federal spending, contributing to the ballooning debt.
Projections by the Congressional Budget Office (CBO) indicate that the debt will continue its upward trajectory, with the federal deficit expected to add approximately $1.9 trillion to the national debt in 2025 alone.
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Over the longer term, the CBO warns that without significant policy changes, the debt could reach an alarming 156% of GDP by 2055, far exceeding the historical average of about 50%. This unsustainable growth rate raises concerns about the country’s fiscal health, as interest payments on the debt are growing faster than most other areas of government spending.
Currently, interest expenses have already surpassed the entire defense budget, highlighting the increasing cost burden of servicing debt.
The expanding national debt poses serious economic challenges for the United States. Rising debt levels could lead to higher interest rates, crowding out private investment and slowing economic growth.
Moreover, increased borrowing costs will reduce the government’s fiscal flexibility, making it more difficult to respond to future crises or fund essential public services. If unchecked, the growing debt burden may undermine confidence in U.S. financial stability and the country’s creditworthiness. To avert these risks, policymakers must consider comprehensive fiscal reforms that address entitlement spending, tax policy, and debt management to ensure long-term economic sustainability.