At the World Governments Summit in Dubai, billionaire investor Ray Dalio, founder of Bridgewater Associates, issued a stark warning about the future of the U.S. economy. In an interview with CNBC correspondent Dan Murphy on February 13, 2025, Dalio expressed deep concerns over the nation’s growing debt, cautioning that without immediate action, the U.S. could face an “economic heart attack.”

Dalio’s primary concern is the rapid expansion of the U.S. national debt, which had surged to $36.22 trillion as of February 11. Of this amount, approximately $28.8 trillion consists of publicly held debt, meaning it is owed to private investors, businesses, the Federal Reserve, and foreign governments. This escalating debt load, he warned, could lead to a dangerous fiscal crisis if not properly addressed.

“If I was a doctor, I would tell you this is very, very serious,” Dalio stated. He emphasized that if the current trajectory continues, the country could enter a “debt death spiral.” This scenario occurs when mounting debt leads to eroding investor confidence, causing a decline in demand for U.S. securities and triggering a potentially severe financial crisis.

Dalio outlined his proposed solution: reducing the budget deficit. He urged the Trump administration to implement strong fiscal policies to cut the deficit from 7.5 percent to 3 percent of GDP. He stressed that failing to take meaningful steps could have detrimental long-term economic consequences.

“If you don’t take action to curb our debt problem, you should either pledge to fix it or step down,” Dalio asserted, calling on policymakers to move beyond recognition of the issue and take decisive action. The real challenge, he noted, is implementing budget reforms that reduce spending without negatively impacting economic growth.

Beyond government debt, Dalio cautioned about troubling trends in the private sector. Many corporations and individuals are borrowing excessively just to cover their interest payments rather than investing in productive ventures. This approach, he said, signals financial instability that could lead to tightened credit markets and economic stress. As investor confidence wanes, the danger is that fewer buyers may be willing to hold U.S. securities, increasing the risk of a full-blown financial crisis.

This is not the first time Dalio has expressed concerns about national debt, but his latest remarks suggest that the situation has deteriorated significantly. He warned that urgent measures must be taken to avoid irreversible economic repercussions.

With trillions of dollars in debt and investor confidence at stake, the key question remains: will the government take the necessary steps to stabilize the economy, or will the debt burden continue to grow unchecked?

Dalio closed with a sobering message for policymakers and the public alike: “When the next financial crisis comes, people need to know who was responsible.”

As economic risks loom large, the debate over national debt and fiscal responsibility is far from over.