Ray Dalio is warning that the U.S. could face a debt crisis within about three years if the country stays on its current fiscal path.
He says the federal deficit needs to fall from roughly 6% of GDP to 3%, with spending cuts, higher revenue and lower interest costs helping close the gap.
Growing debt-service costs and heavy Treasury issuance are raising concerns that demand for U.S. government debt may not be strong enough to keep pace.
Recommended approach involves reducing bond exposure, holding about 10% to 15% in gold and keeping a smaller $BTC allocation as part of a diversified portfolio.
Concern is that falling demand for Treasuries may force policymakers to take steps to support the debt market, including money creation that could weaken the dollar.
#Bitcoin #BTC, the evolving ecosystem# #Bitcoin Price Prediction: What is Bitcoins next move?#
He says the federal deficit needs to fall from roughly 6% of GDP to 3%, with spending cuts, higher revenue and lower interest costs helping close the gap.
Growing debt-service costs and heavy Treasury issuance are raising concerns that demand for U.S. government debt may not be strong enough to keep pace.
Recommended approach involves reducing bond exposure, holding about 10% to 15% in gold and keeping a smaller $BTC allocation as part of a diversified portfolio.
Concern is that falling demand for Treasuries may force policymakers to take steps to support the debt market, including money creation that could weaken the dollar.
#Bitcoin #BTC, the evolving ecosystem# #Bitcoin Price Prediction: What is Bitcoins next move?#