Ray Dalio Warns of Potential Global Monetary System Collapse Amidst US Debt Surge
JAKARTA – Ray Dalio, founder of Bridgewater Associates, has issued a stark warning regarding the stability of the global monetary system, citing the escalating US national debt as a primary concern. He projects the US debt to reach $38 trillion by 2026, equivalent to IDR 637,393, possibly triggering a collapse of the financial order that has underpinned the world economy for decades.
“We are now facing the collapse of the monetary order, and we are faced with a terrible choice.Do we print money or allow a debt crisis to occur?” Dalio stated, according to reports from Watcher Guru.
Dalio voiced thes concerns during discussions at international platforms, including the world Economic Forum (WEF) in Davos. He argues that the US government is navigating a precarious dilemma: continuing to print money, which risks currency devaluation, or allowing a debt crisis to unfold without intervention.
The situation, according to Dalio, aligns with his “Big Cycle” theory, representing the final stage of a long-term cycle within the global monetary system. He emphasizes that the continuous accumulation of debt is creating unsustainable structural pressures with far-reaching, generational consequences. “My grandchildren and great-grandchildren,who are not even born yet,will be paying this debt in dollars that have depreciated in value,” he cautioned.