Billionaire who predicted 2008 crash warns Trump over $36 trillion U.S. debt crisis

Ray Dalio, the hedge fund billionaire who foresaw the 2008 financial meltdown, has issued a stark warning about America’s ballooning $36 trillion debt—calling it the country's “biggest problem.” In his new book, How Countries Go Broke: The Big Cycle, and in a recent NBC interview, Dalio expressed deep concern about the fragility of the U.S. financial system, comparing today’s conditions to the economic turmoil of the 1930s.

Dalio also directed sharp criticism at Donald Trump, accusing the US president’s administration of slashing federal spending and promoting policies reminiscent of hard-right regimes from the 1930s. He argued that Trump’s efforts to expand presidential power mirror the actions of historical figures like Andrew Jackson and Franklin D. Roosevelt, but in a more aggressive manner.

“It would be fair to argue that his attempts to maximize the power of the presidency by bypassing the other branches of government are analogous to the ways that Andrew Jackson (of the right) and Franklin D Roosevelt (of the left) did, though he is even more aggressive than they were,” Dalio said.



In excerpts published by The Guardian, Dalio warned that cutting federal support systems could harm millions of Americans and further destabilize the economic order.

Last month, Dalio cautioned that the U.S. may be headed for something “worse than a recession.” He pointed to a convergence of factors, including Trump-era tariffs and the breakdown of the current monetary system, as signs of looming crisis.

“We have a breaking down of the monetary order,” he said. “Such times are very much like the 1930s. I’ve studied history, and this repeats over and over again.”

As the founder of Bridgewater Associates, the world’s largest hedge fund, Dalio’s warnings carry significant weight—especially given his track record of predicting major economic shifts.