Kathmandu. Renowned hedge fund manager Ray Dalio has issued a chilling warning about america’s rising debt. “The U.S. is reaching a financial turning point where the supply of credit may exceed demand,” he said. This can lead to a crisis. Which will be difficult to solve. \u2019<\/p>\n
Speaking in a podcast with Scott Galloway, Dalio said that this year alone the U.S. government will spend about $7 trillion and earn about $5 trillion. So america will spend 40 percent more than what it earns. Debt is now about six times what the U.S. earns. This means that if a person earns Rs 1 lakh, he will have a loan of Rs 6 lakh. <\/p>\n
According to Dalio, the U.S. will have to pay or reissue $12 trillion in debt next year alone. Of this, about $9 trillion is maturing debt and $2 trillion is new debt. which will be issued to meet the losses. <\/p>\n
In addition, $1 trillion will go to pay interest. Which is half of the budget deficit. “You have to sell a lot of debt,” Dalio warned. We are now at a point where a lot of debt will be added. Which is close to a level. That means the U.S. is close to the danger mark in terms of debt. <\/p>\n
Dalio cited conversations with former fed presidents, central bank chiefs and Treasury officials. Nevertheless, he described it as a “political problem”. Lawmakers privately believe that tax increases and spending cuts are necessary to stabilize the deficit. <\/p>\n
Dalio suggested a 3 percent solution to save america from debt. Accordingly, the deficit should be brought down to about 3 per cent of gdp. Which is currently 6-7 percent. “For this, taxes will have to be increased by 4 per cent and expenditure will have to be cut by 4 per cent,” he said. \u2019<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Renowned hedge fund manager Ray Dalio has issued a chilling warning about america’s rising debt. “The U.S. is reaching a financial turning point where the supply of credit may exceed demand,” he said. This can lead to a crisis. Which will be difficult to solve. \u2019 Speaking in a podcast with Scott Galloway, Dalio […]<\/p>\n","protected":false},"author":16,"featured_media":212521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-268649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/268649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=268649"}],"version-history":[{"count":0,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/268649\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/212521"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=268649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=268649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=268649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}