The Economics Show Introducing the Rachman Review: Is the US heading for a debt crisis?
15 snips
Aug 11, 2025 
In a compelling conversation, Ray Dalio, founder of Bridgewater Associates and debt crisis expert, sheds light on America’s looming debt challenges. He compares the U.S. debt situation to historical crises, analyzing the implications of a staggering $12 trillion in debt. Dalio discusses the pressures on credit systems, the evolving role of the dollar, and emerging investment alternatives like gold and cryptocurrencies. The dialogue also touches on global financial dynamics, highlighting the interconnected nature of debt cycles and politics.
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Two Paths For National Insolvency
- Countries go broke either by default or by printing money that devalues the currency.
- Ray Dalio warns both paths are measurable and present a significant risk.
Debt System As Circulatory System
- Ray Dalio compares the credit system to the circulatory system where debt plaque squeezes spending.
- He argues this imbalance creates imminent risk of a systemic "heart attack".
Huge Debt Rollovers Stress Markets
- The US must roll over and sell roughly $12 trillion of debt soon, Dalio warns.
- He says demand may be insufficient and selling by holders could compound the crisis.
