{"id":30887,"date":"2025-07-29T10:53:12","date_gmt":"2025-07-29T10:53:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/30887\/"},"modified":"2025-07-29T10:53:12","modified_gmt":"2025-07-29T10:53:12","slug":"wall-street-veteran-who-predicted-2008-meltdown-issues-urgent-warning-of-economic-heart-attack-for-us","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/30887\/","title":{"rendered":"Wall Street veteran who predicted 2008 meltdown issues urgent warning of ‘economic heart attack’ for US"},"content":{"rendered":"

By ALICE WRIGHT<\/a> <\/p>\n

Published: 00:56 EDT, 29 July 2025 | Updated: 00:58 EDT, 29 July 2025 <\/p>\n

Billionaire hedge fund titan Ray Dalio, who famously predicted the 2008 financial crash<\/a>, has sounded a stark alarm over America’s spiraling debt.<\/p>\n

Dalio warned that without swift action to slash the federal deficit, the US could face an ‘economic heart attack’ in the next three years.<\/p>\n

‘If the US doesn’t cut the deficit to 3 percent of the GDP, and soon, we risk facing an economic heart attack in the next three years,’ Dalio wrote on X.<\/p>\n

‘The good news is that these cuts are possible.’<\/p>\n

The national debt is nearing $37 trillion <\/a>\u2014 equal to 99 percent of GDP \u2014 and the Congressional Budget Office projects it could hit 150 percent by 2055.\u00a0<\/p>\n

Dalio, founder of Bridgewater Associates\u00a0\u2014 the world’s biggest hedge fund\u00a0\u2014 said a 4 percent adjustment to spending and tax revenues could stabilize the economy and even lower interest rates<\/a>.\u00a0<\/p>\n

‘We know this kind of balance is possible because it happened between 1991 and 1998,’ he wrote, pointing to previous bipartisan deficit deals.\u00a0<\/p>\n

However, Dalio warned that squabbling between Republicans and Democrats will put off the necessary cuts and only serve to see the national debt and its interest payments grow even more.\u00a0<\/p>\n

\"Billionaire <\/p>\n

Billionaire investor Ray Dalio has urged politicians to make efforts to cut the deficit\u00a0<\/p>\n

‘My fear is that we will probably not make these needed cuts due to political reasons, and will have even more debt and debt service encroaching on our spending that will ultimately lead to a serious supply-demand problem.’<\/p>\n

Dalio has repeatedly warned that economic decisions made by the White House will end in economic catastrophe.<\/p>\n

In April the billionaire spoke against Trump’s decision <\/a>to launch a global trade war via tariffs on America’s trading partners.\u00a0<\/p>\n

‘Some people believe that the tariff disruptions will settle down as more negotiations happen and greater thought is given to how to structure them to work in a sensible way,’ Dalio wrote in a post on social media site X.<\/p>\n

‘I am now hearing from a large and growing number of people who are having to deal with these issues that it is already too late.’<\/p>\n

Dalio has joined a group of other bankers, analysts, and executives<\/a>\u00a0who believe the US is heading for a perilous economic moment.\u00a0<\/p>\n

JPMorgan’s CEO Jamie Dimon warned last month that the US economy was on shifting ‘tectonic plates’ <\/a>and warned that inflation<\/a> could once again rear its ugly head.\u00a0<\/p>\n

‘You have all these really complex, moving tectonic plates around trade, economics, geopolitics, and future factors, which I think are inflationary: military, restructuring of trade, ongoing fiscal deficits,; he told\u00a0the Morgan Stanley US Financials Conference.\u00a0<\/p>\n

\"Trump <\/p>\n

Trump signing his ‘Big Beautiful Bill’ which many economists have warned will be inflationary\u00a0<\/p>\n

\"JPMorgan <\/p>\n

JPMorgan Chase CEO Jamie Dimon has also issued warnings on the state of the economy<\/p>\n

The co-founder of Home Depot Ken Lagone also raised concerns about US debt,<\/a>\u00a0and said it is a ‘scary’ indicator for the state of the economy.<\/p>\n

The billionaire said he hoped Washington would heed his warning that ‘we have to be mindful of the importance of our status in the world economy and the world markets.<\/p>\n

‘If we fritter that away, we’re in trouble,’ the 89-year-old said.<\/p>\n

‘Four weeks ago, we couldn’t float a 20-year bond. They were unbiased. That’s a dangerous signal. That’s the beginning,’ Langone said referencing recent crises in the bond market.<\/a><\/p>\n

As well as rising debt interest payments, the federal government is also seeing the squeeze from bigger demands on Medicare and Social Security<\/a> as the population ages and lives longer.\u00a0\u00a0<\/p>\n

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