Ray Dalio: Rising Debt Risks Require More Gold and Bitcoin Exposure Bridgewater founder Ray Dalio said recent moves in the U.S. Treasury market reflect the late stage of a “Big Debt Cycle,” with rising debt supply, weaker demand for government bonds, and growing pressure on currencies. He warned that if debt burdens continue to rise, governments may be forced to choose between higher interest rates that hurt the economy or central bank money creation that devalues currencies. Dalio noted that U.S. federal debt has reached about $32 trillion, with annual interest payments around $1 trillion, and projected debt could rise to $55–60 trillion over the next decade without major adjustments. He recommended reducing exposure to bonds and increasing allocations to assets such as gold and a small amount of Bitcoin as protection against debt and currency devaluation risks.