1/ Ray Dalio created the biggest hedge fund in the world, Bridgewater Associates. He predicted: - Dotcom Bubble of 2000. - Great Recession of 2008. - Covid Bubble of 2021. He now sees that the US is going into a debt crisis at full speed:

2/ The US budget deficit is currently $1.9 trillion, the 8th highest in history. Because of the deficit, it can't pay its debt, so it needs to refinance $9 trillion of debt by March 2026. This means that the US needs to flood the market with debt to meet its obligations.

3/ Flooding the market with new debt will lead to a "supply shock," Ray Dalio says. There is a chance that there won't be enough buyers, as the US deficit might have eroded investor confidence. We have started to see the signs of this...

4/ Big holders are dumping US debt... Japan and China have significantly reduced their US debt reserves. Though the UK has bought more US debt over the years, it can't fill the shoes of Japan and China. It's not easy to find buyers while the biggest holders are dumping.

5/ The US's economic condition is making it harder to sell debt now. Since 2023, the Fed has kept the rates high and shrunken its balance sheet to tame inflation. Rates are still high, and we also have tariffs now. Result? Investors don't want to accept low rates on bonds.

6/ Investors see two scenarios: - Fed cuts rates to lower the coupons. - Fed steps in and buys the government debt. Both are inflationary in the long term. So, they don't want to accept low interest. This is reflected by the term premium, which is near its highest in the last

7/ This is pushing the yields up, which increases the government's cost of funding. Higher cost of funding means more interest burden, which leads to even higher cost of funding in the future. Just like that, you have a death spiral of debt.

8/ This may lead to something disastrous... Other countries may start seeing the USD as an inflationary asset and keep dumping the US debt... This risks USD's status as the reserve currency of the world. Ray Dalio calls this "the breaking down of the global monetary order":

9/ Countries across the world are already replacing the US dollar with Gold. In the last quarter, the USD's share of global reserves hit its lowest point in the last 30 years. As Trump's "Big Beautiful Bill" will boost spending even more, the USD will become more inflated.

10/ So, what should investors do? - Reduce fiat exposure. - Put your money in assets. - Diversify across asset classes. - If buying stocks, buy companies with pricing power. This won't solve anything, but this is the best you can do.

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@thexcapitalist Dude are you kidding? He’s a permabear. He hasn’t predicted a single thing. You need to do some research. This looks foolish.

@thexcapitalist always listen to dalio, mans been right for decades gold gang 4 life rayD knows his shit, don't sleep dalio's track record is unmatched, no cap dalio's crystal ball is clearer than yours rayD's warnings are worth heeding, fr

@thexcapitalist So @theRealKiyosaki was right when he said the market was going to crash everyday for the past 7 years?🤣🤡

@thexcapitalist If he's so smart, why is his allocation to gold only like 1%?

@thexcapitalist Dalio sees collapse. What most miss is the flip side. Every currency crisis births a new power base. The question isn’t ‘what dies’ but ‘what replaces it.

@thexcapitalist The market is a game of chess, not checkers. Dalio’s warning is a signal to those paying attention. Gold's ascent reflects a flight to safety, while the USD's decline signifies a loss of confidence. Are you prepared for the fallout? Smart money is already repositioning.

@thexcapitalist Why not... He's predicted 185 of the last 3 "disasters".

@thexcapitalist Gold ripping isn’t a mystery: Spot gold sits near record highs ($3,478/oz as of Sept 1), after setting an all time high in April. The dollar (DXY) just had its worst H1 since 1986 (-10.7%), easing a key headwind for bullion. Flows + fundamentals: gold ETFs swung back to net

@thexcapitalist He could be right but he was totally wrong when it came to China.

@thexcapitalist When did he say this?

@thexcapitalist When you predict US collapse 47 times per year you might be right a few times.

@thexcapitalist 😍 the collapse

@thexcapitalist @grok to prawda?

@thexcapitalist Details are as follows！ 👇 Show more

@thexcapitalist My strategy plan ⬇️Show more

@thexcapitalist Dalio is a natural doomsayer, apparently, and the father of all the evonomists who have been predicting the end of our times.

@thexcapitalist the dollar debt death spiral. bitcoin solves problems governments create

@thexcapitalist Bullshit

@thexcapitalist USD is backed my American military. I believe its status will remain solid

@thexcapitalist ALWAYS DO THE OPPOSITE

@thexcapitalist old WEF pedophile

@thexcapitalist Tl;dr we're F'd.

@thexcapitalist Dalio? THEEE Dalio??

@thexcapitalist Very good summary.

@thexcapitalist FUD