US Debt Spiral Worsens as Borrowing Outpaces Income, Dalio Warns
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The US is nearing a fiscal "inflection point" as debt grows faster than income, according to Ray Dalio.
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Rising debt means bigger interest payments, requiring more borrowing and worsening the supply-demand imbalance.
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Political dysfunction has contributed to credit downgrades, impacting foreign demand for US debt.
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Total US debt now tops $33 trillion, and rising interest costs cast doubt on demand for Treasurys.
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Investors need to watch auction metrics and rating agencies as demand for US bonds declines.