Bridgewater Associates founder: The United States may experience a debt crisis within three years

According to Bitcoin.com, Ray Dalio, the founder of Bridgewater Associates, warned in an interview with Bloomberg that the United States may face a debt crisis in the next three years as interest payments on debt continue to squeeze other federal budget areas.

Dalio pointed out that the U.S. government generates about $5.5 trillion in revenue each year and spends about $7.5 trillion, resulting in a fiscal deficit of nearly $2 trillion. Currently, the federal government spends about $1 trillion annually on interest payments, and when including maturing debt that needs refinancing, the total annual debt repayment and refinancing needs amount to about $11 trillion.

Meanwhile, U.S. Treasury yields continue to rise, with the 10-year Treasury yield closing at 5.31% on October 5, and the 30-year yield reaching 5.66%, further increasing the pressure on government financing.

Dalio suggested reducing spending, increasing tax revenue, and lowering interest rates to bring the fiscal deficit as a percentage of GDP down from about 6% to 3%. In terms of asset allocation, he previously recommended allocating 10% to 15% of the investment portfolio to gold, while Bitcoin only occupies a small proportion.