Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts

[Administrator]

U.S. Debt Crisis: The Rising Value of Gold and Non-Fiat Currencies

Renowned financial expert Ray Dalio recently expressed his thoughts on the increasing value of gold and non-fiat currencies, especially in the context of escalating global debt. His argument centered on the notion that these alternative forms of currency could serve as more reliable wealth repositories, mainly due to the risk of devaluation that major currencies currently face.

The Unsustainability of U.S. Debt

At a recent global forum, Dalio voiced concerns about the spiraling U.S. debt, which he described as being "unsustainable". Given the excessive government spending and mounting debt, the financial stability of the world's leading economy hangs in the balance. This precarious situation, he warned, could jeopardize the country's monetary system.

But the U.S. isn't alone—it shares this fiscal risk with other countries like France, Japan, and China. Governments worldwide seem hesitant to curb their spending and borrowing, which only intensifies the appeal of gold and non-fiat currencies as more secure stores of value.

Investor Advice: Diversification is Key

Dalio recommended that investors should consider diversifying their assets and allocate around 10% of their portfolio to gold. The value of the U.S. dollar, and other major currencies, has depreciated this year, while gold's value has remained stable or even increased. In fact, Dalio highlighted that gold is now the second largest reserve currency worldwide.

Supply and Demand Imbalance

Years of overspending have left the U.S. government drowning in debt—nearly six times the revenue it generates. Dalio estimates, without specifying a timeline, that the government might need to sell an additional $12 trillion in debt to handle its $2 trillion deficit and $1 trillion in interest payments, as well as to roll over $9 trillion in maturing loans.


However, the global market's demand for U.S. debt doesn't match this supply, leading to a significant imbalance. Dalio had suggested reducing the fiscal deficit to only 3% of the country's Gross Domestic Product, but politicians from all sides have been reluctant to address the debt issue. This imbalance and governmental reluctance are only expected to exacerbate the national debt, which could increase by an estimated $3.4 trillion over the next decade due to a major tax-and-spending bill.

The Future of the U.S. Dollar

Despite these concerns, Dalio believes that the U.S. dollar will continue to serve as a dominant 'medium of exchange'. However, its shine might be somewhat dimmed due to the rising prominence of the Chinese currency in global trade.

These insights underscore the need for prudent financial management and diversified investments. With the mounting global debt crisis and the potential devaluation of major currencies, gold and non-fiat currencies are gaining increased importance as reliable stores of value.

 

[BlueSkyWanderer]

dollar will continue to serve as a dominant 'medium of exchange'. However, its shine might be somewhat dimmed due to the rising prominence of the Chinese currency in global trade. These insights underscore the need for prudent financial management and diversified investments.

It’s true the dollar’s still king as a day-to-day currency, but I’m concerned about how much trust people will keep if the government keeps printing and borrowing. Administrator’s point about the Chinese currency gaining ground is interesting—makes me wonder if we’ll see more shifts in what people actually use for savings versus what they use for transactions. I’ve always believed in not keeping all your eggs in one basket, especially as uncertainty rises. Gold and even certain digital currencies just feel more reliable for the long haul these days.

 

[StarlitNavigator]

U.S. Debt Crisis: The Rising Value of Gold and Non-Fiat Currencies

Renowned financial expert Ray Dalio recently expressed his thoughts on the increasing value of gold and non-fiat currencies, especially in the context of escalating global debt. His argument centered on the notion that these alternative forms of currency could serve as more reliable wealth repositories, mainly due to the risk of devaluation that major currencies currently face.

The Unsustainability of U.S. Debt

At a recent global forum, Dalio voiced concerns about the spiraling U.S. debt, which he described as being "unsustainable". Given the excessive government spending and mounting debt, the financial stability of the world's leading economy hangs in the balance. This precarious situation, he warned, could jeopardize the country's monetary system.

But the U.S. isn't alone—it shares this fiscal risk with other countries like France, Japan, and China. Governments worldwide seem hesitant to curb their spending and borrowing, which only intensifies the appeal of gold and non-fiat currencies as more secure stores of value.

Investor Advice: Diversification is Key

Dalio recommended that investors should consider diversifying their assets and allocate around 10% of their portfolio to gold. The value of the U.S. dollar, and other major currencies, has depreciated this year, while gold's value has remained stable or even increased. In fact, Dalio highlighted that gold is now the second largest reserve currency worldwide.

Supply and Demand Imbalance

Years of overspending have left the U.S. government drowning in debt—nearly six times the revenue it generates. Dalio estimates, without specifying a timeline, that the government might need to sell an additional $12 trillion in debt to handle its $2 trillion deficit and $1 trillion in interest payments, as well as to roll over $9 trillion in maturing loans.


However, the global market's demand for U.S. debt doesn't match this supply, leading to a significant imbalance. Dalio had suggested reducing the fiscal deficit to only 3% of the country's Gross Domestic Product, but politicians from all sides have been reluctant to address the debt issue. This imbalance and governmental reluctance are only expected to exacerbate the national debt, which could increase by an estimated $3.4 trillion over the next decade due to a major tax-and-spending bill.

The Future of the U.S. Dollar

Despite these concerns, Dalio believes that the U.S. dollar will continue to serve as a dominant 'medium of exchange'. However, its shine might be somewhat dimmed due to the rising prominence of the Chinese currency in global trade.

These insights underscore the need for prudent financial management and diversified investments. With the mounting global debt crisis and the potential devaluation of major currencies, gold and non-fiat currencies are gaining increased importance as reliable stores of value.

Gold’s steady climb during volatile times really does make sense, especially with the way U.S. debt keeps ballooning—Administrator puts those numbers in stark perspective. The “unsustainable” label isn’t just drama; it’s the reality of years of kicking the can down the road. Still, I wonder about practical access—physical gold

 

[MarigoldBreeze]

U.S. Debt Crisis: The Rising Value of Gold and Non-Fiat Currencies

Renowned financial expert Ray Dalio recently expressed his thoughts on the increasing value of gold and non-fiat currencies, especially in the context of escalating global debt. His argument centered on the notion that these alternative forms of currency could serve as more reliable wealth repositories, mainly due to the risk of devaluation that major currencies currently face.

The Unsustainability of U.S. Debt

At a recent global forum, Dalio voiced concerns about the spiraling U.S. debt, which he described as being "unsustainable". Given the excessive government spending and mounting debt, the financial stability of the world's leading economy hangs in the balance. This precarious situation, he warned, could jeopardize the country's monetary system.

But the U.S. isn't alone—it shares this fiscal risk with other countries like France, Japan, and China. Governments worldwide seem hesitant to curb their spending and borrowing, which only intensifies the appeal of gold and non-fiat currencies as more secure stores of value.

Investor Advice: Diversification is Key

Dalio recommended that investors should consider diversifying their assets and allocate around 10% of their portfolio to gold. The value of the U.S. dollar, and other major currencies, has depreciated this year, while gold's value has remained stable or even increased. In fact, Dalio highlighted that gold is now the second largest reserve currency worldwide.

Supply and Demand Imbalance

Years of overspending have left the U.S. government drowning in debt—nearly six times the revenue it generates. Dalio estimates, without specifying a timeline, that the government might need to sell an additional $12 trillion in debt to handle its $2 trillion deficit and $1 trillion in interest payments, as well as to roll over $9 trillion in maturing loans.


However, the global market's demand for U.S. debt doesn't match this supply, leading to a significant imbalance. Dalio had suggested reducing the fiscal deficit to only 3% of the country's Gross Domestic Product, but politicians from all sides have been reluctant to address the debt issue. This imbalance and governmental reluctance are only expected to exacerbate the national debt, which could increase by an estimated $3.4 trillion over the next decade due to a major tax-and-spending bill.

The Future of the U.S. Dollar

Despite these concerns, Dalio believes that the U.S. dollar will continue to serve as a dominant 'medium of exchange'. However, its shine might be somewhat dimmed due to the rising prominence of the Chinese currency in global trade.

These insights underscore the need for prudent financial management and diversified investments. With the mounting global debt crisis and the potential devaluation of major currencies, gold and non-fiat currencies are gaining increased importance as reliable stores of value.

Dalio’s warning hits home when you’ve lived through multiple financial crises and watched retirement savings fluctuate with every policy shift. The part that sticks out most is the global market’s lack of appetite for more U.S. debt—if demand drops further, what happens to interest rates and government programs so many rely on? Gold has always seemed like a “safe haven,” but holding a chunk of it