🔊🇺🇸 US political system too hopelessly broken to fix looming debtpocalypse

🔊🇺🇸 US political system too hopelessly broken to fix looming debtpocalypse - Ray Dalio

The $38T economic “heart attack” facing the country could be fixed through higher taxes and lower government spending, but won’t be because the political class prefers bickering, the billionaire investor and economic historian said.

“It really comes from a little bit of everything,” Dalio said as far as what would be necessary to prevent a full-blown debt crisis. “You need a strong [political] middle because both sides will fight each other and probably get to the point where there are irreconcilable differences and they can’t resolve that.”
“It has to be done in a bipartisan way, in other words, I would like a bipartisan commission to deal with the mechanics and achieve that. I don’t think these things are going to happen,” the billionaire lamented.

Stressing that “one man’s debts are another man’s assets,” Dalio also warned that the combination of skyrocketing US debt, geopolitical instability and clashes between nations are a recipe for disaster.

“Let’s say the Chinese, which are a creditor to the United States, if they understand history or even what’s been happening recently, [they might] feel threatened that those bonds they’re holding may not be produced full value, and can be used for sanctioning,” he said.