Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts

Ray Dalio, the founder of Bridgewater, said on Friday, that the currencies of gold and non -Fiat will have stronger value warehouses in the midst of assembling the global debt pressure of large currencies.

Speaking at the Futurechina Global Forum at 2025, Dalio warned that the US government has become “sustainable” by the US government and that the world’s largest economy is facing a major financial crisis that would risk the monetary order.

When global governments appear reluctant to restrain excessive expenditure and borrowing, all currencies add the risk of losing their attractiveness as a reserve warehouses-sub-sub and make non-Fiat currencies into more suitable value warehouses.

Dalio called on investors to diversify gold in approximately 10% of their portfolios.

Avanda Investment Management Founding Partner and President NG Kok Song, the same panel, the US debt sustainability, “he said.” We do not know when the crisis will emerge. “

He also noted that financial risks are not unique to the US, and that it is seen in countries such as France, Japan and China.

Greenback, this year, while entering the depreciation against other major currencies, the dollar index rolled over 10%, while these currencies weakened according to gold, Dalio said that gold has become the second largest largest reserve currency globally.

Supply-demand imbalance

After years of “excessive expenditure”, the US government has six times the amount of swelling of the amount of money received.

Without giving a timeline, the government estimated that the government should sell $ 2 trillion deficit, interest rate of $ 1 trillion, and to sell a $ 12 trillion debt in order to meet a $ 9 trillion circuit in mature borrowings.

“The market in the world does not have the same demand, which creates supply-demand imbalance,” he said.

Dalio, Washington deputies suggested to reduce the financial deficit to 3% of the gross domestic product, but the policies on both sides of the corridor are reluctant to balance the debt level, he added. US President Donald Trump’s major tax and expenditure bill is expected to add $ 3.4 trillion to the national debt in the next decade.

However, the US dollar will protect the dominant use as a “means of change”, but Dalio will get a little distant from the dollar in the increasing role of the Chinese currency in global trade.