Ray Dalio, the founder of Bridgewater Associates, recently highlighted some troubling trends in global finance. Speaking at the FutureChina Global Forum 2025, he warned that growing debt levels could weaken major currencies, pushing investors toward gold and other non-fiat currencies as safer options.
Dalio pointed out that the U.S. government’s spending is becoming unsustainable. As debt rises, so does the risk of a financial crisis. Countries like France, Japan, and China are facing similar challenges, raising fears about the stability of their economies.
He suggested that investors should think about putting around 10% of their assets into gold. This comes after years of overspending, which has left the U.S. with a debt six times larger than its income. The government may need to take on an additional $12 trillion in debt to cover a projected $2 trillion deficit, $1 trillion in interest, and $9 trillion in maturing loans.
There’s a notable supply-demand imbalance in the market. As Dalio explained, the world may not have enough appetite for the government’s debt, leading to potential issues in financing it.
Ng Kok Song, chairman of Avanda Investment Management, echoed Dalio’s concerns, remarking that the risks aren’t just American but also global. Economic uncertainty is growing, leaving many to wonder when these issues might surface.
Despite the dollar’s decline against other currencies, Dalio noted that gold is now the second-largest reserve currency globally. Although he believes the U.S. dollar will remain the primary medium of exchange, the growing influence of countries like China might lessen its dominance.
In social media circles, many users are buzzing about the potential impact of these warnings. Tweets and posts are filled with discussions about the viability of gold and the importance of diversifying investments. Experts suggest monitoring this financial landscape closely to navigate the uncertain waters ahead effectively.
For those seeking more details, the Wall Street Journal has reported extensively on the implications of these trends, helping to shed light on how they might unfold in the coming years.
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