The entrepreneur reportedly said Trump administration officials, including Treasury Secretary Scott Bessent, are taking “certain actions” to maintain the dollar’s dominance.
Bridgewater Associates founder Ray Dalio reportedly 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.”
U.S. federal debt stands at over $37.49 trillion, and is expected to rise even further due to President Donald Trump’s signature tax and spending bill, which was signed into law in July. According to the Congressional Budget Office, the U.S. law will add over $3.4 trillion to the national debt. Trump’s allies have assured that tariff revenue will offset some of that burden.
“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 U.S. dollar index, which compares the greenback to a basket of currencies, still advanced 0.3% on Friday, as investors debated whether the Federal Reserve would deliver two more 25-basis-point cuts this year after Chair Jerome Powell struck a cautious tone earlier this week.
Retail sentiment on Stocktwits about both the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust Series 1 (QQQ) was in the ‘bullish’ territory at the time of writing.
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.
In response, Dalio reportedly said Trump administration officials, including Treasury Secretary Scott Bessent, are taking “certain actions” to maintain the dollar’s dominance, while adding that he didn’t have insight into what the measures were.
“Speaking with Secretary Bessent and people in the administration, there is a greater realization of these problems and greater proactiveness to be able to deal with them than there was before, by a lot,” he stated.
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