An influential investor is advising individuals to move away from bonds and consider investing in gold and Bitcoin (BTC) as a safeguard against a potential major US debt crisis.
Ray Dalio, the founder of Bridgewater Associates, shared his views in a recent post on LinkedIn published on Friday, August 21st, 2026. He pointed to recent Treasury actions, such as Secretary Scott Bessent’s announcement of debt buybacks exceeding $4 billion, as indicators of looming financial trouble.
The US is currently spending approximately 40% more than it is earning, with revenue for this year at around $5.5 trillion and expenses nearing $7.5 trillion. Dalio highlighted that if the US government were a business, debt service payments would amount to about $11 trillion—almost 200% of annual revenue.
Dalio emphasized that the government’s financial situation is reaching a critical point. He suggested a three-pronged approach to reduce the deficit to 3% of GDP by simultaneously cutting spending, increasing tax revenue, and lowering interest rates to prevent any drastic consequences.
Dalio projected that a debt crisis could emerge within one to five years, with his estimate leaning towards three years if no changes are made. To prepare for this scenario, he recommended investors reduce their bond holdings, allocate 10% to 15% of their portfolio to gold, and hold a small portion of Bitcoin.
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Generated Image: Midjourney
