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Billionaire investor warns of surging debt, says ‘civil war’ developing in US

Ray Dalio highlights that the U.S. debt-to-GDP ratio near 125% and deep political divisions increase risks of financial collapse or internal conflict, based on historical cycles.

  • Ray Dalio, Bridgewater Associates founder, warned on Friday in a Bloomberg interview that rising debt and wealth gaps are driving a civil war of some sort developing in the United States.
  • Public data show public debt is over $30 trillion, equaling about 99% of U.S. GDP last year, while Dalio highlighted the debt-to-GDP ratio at around 125%.
  • Using medical metaphors, Dalio compared rising debt service to `plaque in the arteries` that squeezes spending and called the imbalance a `debt bomb`, urging tax increases and spending restraint.
  • Dalio warned the debt problem could become a full-blown crisis, forcing higher interest payments or significant cutbacks as selling debt may exceed market appetite, and social friction risks people `hurt each other`.
  • Dalio drew historical parallels to 1937–1938 and pre-World War II borrowing patterns, while Nassim Nicholas Taleb urged investors to hedge against a debt-driven crash.
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Bloomberg broke the news in United States on Friday, October 10, 2025.
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