Key Elements of Dalio's Debt View (2025-2026):

• The "Debt Death Spiral": The U.S. is spending over 40% more than it brings in, and interest payments are ballooning to around 1 trillion (roughly 20% of revenue).
• Monetization Over Default: Dalio predicts that the U.S. will not default, but will instead print more money, leading to the depreciation of the dollar and higher inflation.
• Political Dysfunction: He believes the core issue is political, with rising debt and political polarization representing the greatest threats, rather than typical corporate risk-taking.