Billionaire Ray Dalio, the founder of Bridgewater Associates, is raising concerns about America’s excessive spending and national debt approaching $37 trillion, coupled with a $2 trillion deficit that could further increase with President Trump’s proposed ‘One Big Beautiful Bill.’ “We’re spending 40% more than what we’re bringing in, and this has become a persistent issue. The debt service payments are increasingly squeezing away our buying power, akin to plaque in the arteries, leading to a potential economic ‘heart attack’,” Dalio warned during an interview on FOX Business Network’s ‘The Claman Countdown.’ With nearly one-third of the $36 trillion national debt requiring refinancing and amidst Trump’s calls for rate cuts, Dalio outlined a strategy to alleviate the economic strain. “We are currently at a critical juncture where, if promptly addressed while the economy remains strong, reducing the deficit to 3% of GDP is achievable. By making slight adjustments to spending and tax income, such as a 4% change in each, we can lower interest rates. This was successfully implemented between 1991 and 1998, signifying that with collective efforts, reaching a 3% deficit is feasible. Failure to act would result in a scenario reminiscent of heart plaque accumulation, leading to increased debt, a higher debt service burden on our spending, and a potential supply-demand dilemma,” he explained. The Congressional Budget Office projects that Trump’s tax bill could elevate the deficit to $2.77 trillion. The White House has contested the CBO’s assessments, citing the exclusion of revenues like tariffs. Larry Kudlow, former Trump economic advisor and current host of FOX Business Network’s ‘Kudlow,’ highlighted past inaccuracies in the CBO’s estimates, emphasizing an underreporting of the impacts of Trump’s 2017 tax cuts. The bill is progressing through Congress and is anticipated to reach the President’s desk by July 4.
