luc, CNBC Indonesia
Friday, 09/29/2023 22:00 WIB
Photo: Ray Dalio. Doc: CNBC International
Jakarta, CNBC Indonesia – Billionaire and seasoned investor from the United States (US) Ray Dalio stated that he was closely monitoring the “risky” US fiscal situation.
“We’re going to have a debt crisis in this country,” said the founder of hedge fund Bridgewater Associates in an interview with CNBC Internationalquoted Friday (29/9/2023).
“How quickly this happens, I think, will depend on supply-demand issues, so I’m watching that closely,” he added.
US debt levels surpassed US$ 33 trillion or Rp. 511,500 trillion (exchange rate Rp. 15,500) for the first time this month as lawmakers negotiated a US spending bill before the October 1 deadline. Failure to reach an agreement could mean a government shutdown and increase the country’s debt risks.
According to the US Treasury Department, debt levels have ballooned in recent years, especially after an increase in federal spending of about 50% between fiscal year 2019 and fiscal year 2021.
Investors worry that interest rates will continue to rise as the US fiscal situation worsens, reducing demand for Treasuries.
Dalio worries there will be more headwinds for the economy besides high debt levels, and says growth could drop to zero, give or take 1% or 2%.
“I think the economy will experience a significant slowdown,” Dalio said.
Watch the video below:
Video: World Debt 2023 Breaks Records!!
(luc/luc)
2023-09-29 15:00:00
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