Bridgewater founder Ray Dalio warns that rising US debt burdens and Federal Reserve vulnerability are eroding the dollar’s dominance. In a detailed rebuttal to the Financial Times, he positions cryptocurrency as an emerging alternative store of wealth. Dalio’s analysis places crypto alongside gold as a hedge against potential monetary system breakdown.
- Projects $2 trillion annual deficit requiring additional debt, with $9 trillion needed for debt rollovers and $1 trillion in annual interest payments
- Warns that political pressure undermining Fed independence could trigger 'unhealthy decline in money value' and breakdown of monetary order
- Identifies five converging forces driving systemic change: debt, domestic politics, geopolitics, acts of nature, and technology (particularly AI)
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