The USA is on the verge of an economic crisis

Ray Dalio, founder of the largest hedge fund Bridgewater Associates, made a statement about the critical state of the US economy. He stressed that the country needs to reduce the budget deficit from 7.5% to 3% of GDP, otherwise the consequences could be catastrophic. 

As of February 11, the US national debt reached $36.22 trillion, of which $28.8 trillion accounted for obligations to private entities, foreign governments and other participants.

A high debt burden increases the vulnerability of the economy, leads to higher inflation and creates a serious burden for future generations. Dalio compared this to an «economic heart attack» that could occur if the authorities don't take action. He called on the leaders to take responsibility for reducing the deficit or resign.

Dalio also warned against a debt «death spiral» where borrowers are forced to borrow funds to service old obligations, which accelerates the crisis.