Bridgewater Associates founder Ray Dalio: U.S. debt risks are rising, suggesting reducing bonds, increasing gold, and holding a small amount of Bitcoin Ray Dalio, founder of Bridgewater Associates, shared a post stating that recent events—such as the Japanese government selling off part of its U.S. Treasury holdings, U.S. long-term Treasury yields hitting record highs, the weakening of the U.S. dollar, and the U.S. Treasury Secretary announcing plans to buy back government bonds—align closely with the 'classic debt restructuring template' described in his book. When government debt grows faster than income, interest payments squeeze fiscal space. If the supply of government bonds exceeds market demand, it could lead to rising yields or force central banks to stabilize the market by purchasing bonds and increasing the money supply, which in turn weakens the currency's value. Dalio pointed out that the U.S. is currently facing pressures from approximately $32 trillion in federal debt and around $1 trillion in annual interest payments. Over the next decade, debt could rise to $55–60 trillion. He recommends reducing fiscal deficits to 3% of GDP through spending cuts, tax increases, and lower interest rates; otherwise, debt pressures could worsen further. He advises diversifying investments into asset classes and countries with strong financial health, solid balance sheets, and minimal internal political or external geopolitical conflicts. At the same time, he suggests reducing holdings of debt assets like bonds and increasing allocations to gold and a small amount of Bitcoin. Holding a small portion of gold (e.g., 10%-15% of total assets) can reduce portfolio risk while also improving returns.