Dubai, United Arab Emirates - Hedge fund Titan Ray Dalio has issued a new warning to the U.S. economy to warn of dire consequences if the Trump administration does not cut the country’s debt.

"It's like I'm a doctor, I'm talking to you about your condition, and I'll say to you, it's very, very serious right now. All of these are the main issues," Dalio told CNBC's Dan at the Dubai World Government Summit. Murphy said. "What you need to do is reduce your deficit from about 7.5% of GDP to 3% of GDP, and you can do that. You can do something that cuts it somehow makes it happen Be healthier, so the real problem is a political issue.”

As of February 11, the total U.S. bonds were approximately $362.22 trillion, of which $28.8 trillion were held as public debts, to individuals, companies, state or local governments, Federal Reserve, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, Foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, foreign governments, and other entities other than the United States government.

High debt means that governments spend more on interest payments and are more economically vulnerable in the event of future economic crises. It also leads to higher inflation and burdens future generations.

"I want to remind people. I want to remind government officials," said the founder of billionaire Bridgewater employees. “I want to help, you know, so I feel like a doctor, and then I’m going to say politically to everyone…if that doesn’t happen, we know, the equivalent of an economic heart attack or a heart attack in the bond market, and then You know who is responsible because that can happen.”

“So it needs the same discipline as I said to you, well, you need to change the way you eat, you need to change the exercise routine, you need to do these things.”

Dalio stressed that the government is responsible and leaders should commit to reducing the U.S. budget deficit from 7.5% of its GDP to 3% or resign.

When asked what his message was about the Trump administration, Dalio replied:

“I think they recognize the problem and then in the actions they take, how do they cut costs? How do you increase productivity? …Make sure you really know what you are doing and that you are practical and on the…conservative side, because You know, how much does it actually cost to cut? We'll see what the consequences of cutting and what the consequences are. So you'd better take a sharp pencil and stay conservative."

Dalio also warned of debt in private credit, saying that “the debt death spiral is that part of the cycle, and the debtor needs to borrow money to borrow money to repay the debt, then accelerated, and then everyone saw it, they don’t Like debt. Want to hold debt. That's where we are going to get close to."

Bridgewater Associates of Dalio is one of the largest hedge funds in the world. As of September 2023, it had $171.7 billion in assets as of September 2023, according to the Securities and Exchange Commission.