Bridgewater Dalio issues another warning: US debt surge rekindles pre-World War II risks.

Ray Dalio, the founder of Bridgewater, warned that the rapid rise in US government debt is creating a situation similar to the years before World War II. Dalio stated, "When debt rises relative to income, like plaque building up in arteries, it eventually squeezes out the space available for spending." Dalio has long been sounding the alarm on the risks posed by the increasing US debt. Last month, he referred to it as a "threat to the monetary order." He criticized US politicians from both parties and called for a combination of "tax increases and spending cuts" to address what he called the "deficit/debt bomb." According to data from the Congressional Budget Office (CBO), US publicly held debt reached 99% of GDP last year and is projected to rise to 116% of GDP by 2034, reaching a historical high. Dalio also highlighted escalating global conflicts and wealth inequality as concerning issues. When asked whether another world war could erupt, he mentioned that the US and other regions are experiencing a form of "civil war" rooted in "irreconcilable differences." He stated, "These conflicts will evolve into a battle of forces. The key is to address these disputes. If we are not vigilant, the risks will be greater."