#EconomicAlert #Economy Recession #America
America's debt crisis - what Dalio said - Speaking on CNBC's CONVERGE LIVE program in Singapore, Dalio said that the US needs to reduce its current budget deficit from 7.2% to 3%, which is a difficult target. He said- "This is a big problem. We may see shocking developments. There should be immediate action on how to deal with this problem.
America's national debt has increased to more than $ 36.2 trillion, and if it continues to grow like this, then America may have to change its debt restructuring, put pressure on other countries to buy it, or some countries may even have to stop paying.
What could be the consequences of this crisis- Ray Dalio believes that if America does not have buyers to meet its debt, then it can take some tough steps, such as:
Change in debt terms (Debt Restructuring) - America can postpone the payment of its debt or reduce interest rates.
Pressure on other countries - America can put pressure on its allies to buy American bonds.
Trade war- Dalio's warning has come at a time when the market is witnessing huge instability due to America's new tariff rules. Trade war Fears and rising interest rates are also worrying investors.
WARNING FOR INVESTORS-He also said that investors should remain cautious as the current US policies can shock the global markets.
After this warning by Dalio, there is a stir in the US bond market and stocks as well. It is clear from this warning by Dalio that in the coming times, the US financial policies can become even more strict, which will have a profound impact on investors and markets