Ray Dalio, founder of Bridgewater Associates, one of the world largest hedge funds, on Thursday (28 Sep) commented on the breaking record of $33 trillion US national debt, while the US government shutdown is near due to the unlikely of federal budget passing from congress, as the hardline conservative demands for more cut.
The billionaire investor expressed concerns about the US debt crisis. The supply-demand issue could suddenly rise as he would watch “closely” amid the slowing down of the US economy, possibly down to 0%. The failure of negotiation in congress that will result in government shutdown on this 1 October, will exacerbate the country’s debt issue.
US debt has ballooned roughly by 50% between 2019 to 2021. The increase of the policy rate from the FED and the bond yield hurt the demand of the US Treasury as the bond prices are falling, along with US government credibility as it’ll be more difficult to pay back higher principal and higher bond rates.