Shocking Developments Alongside USA Spiraling Debt

 We have read that USA has to refinance $7 trillion in Government bonds this summer.  That means that they have to go back on the bond auction floor along with the $1 trillion we just needed to sell to finance the overspending we’ve already done in in last 5 months.  What Ray is talking about when he warns of “supply-demand problems” is that an over supply of paper bonds all dropped on the auction floor at the same time could make for a shocking development.  What happens if the world doesn’t want to buy $8 trillion (remember $1 trillion is $100 bills stacked in a pile reaching over 600 miles into the sky) of our paper promises?  Then we have to promise higher interest rates.  And now instead of paying $68 billion per month in interest it jumps to $168 billion.  The rats on the ship recognize that it’s starting to sink and everyone heads for the lifeboats to sell all their bonds.  USA has no option but to print paper money that no one wants because the faith and confidence is gone.

Some are saying that Trump is threatening tariffs to temporarily drop the stock market so trillions of dollars will flee into the safety of government bonds…thereby increasing demand and getting ready for the flood of supply.  We don’t know if this is true.  I believe Trump is smart enough to have this as a plan.

The world could certainly turn on America.  America may very well be all alone at the end of the age.  Europe is filled with woke people and Muslims who are sensing weakness.  1/2 of America is literally in tears of hatred over the other 1/2.  It’s an interesting time!  And Jesus is in control of it all!  He knows exactly where this is going.

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Bridgewater founder Ray Dalio on Wednesday warned that a significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy.

It is the latest in a series of stark warnings about America’s mounting debt from the U.S. hedge fund billionaire, with the country’s national debt currently standing at more than $36.2 trillion.

“The first thing is the debt issue, we have a very severe supply-demand problem,” Dalio told CNBC’s Sara Eisen at CONVERGE LIVE in Singapore. ”[The U.S. has] to sell a quantity of debt that the world is not going to want to buy.”

He said this was imminent and of “paramount importance.”

The U.S. deficit needs to go from a projected level of 7.2% of gross domestic product to about 3% of GDP, Dalio said.

“That’s a big deal. You are going to see shocking developments in terms of how that’s going to be dealt with,” he added.

Asked whether the U.S. debt problem could lead to a period of austerity, Dalio said the issue could result in a restructuring of the debt, the U.S. applying pressure on other countries to buy the debt, or even cutting off payments to some creditor countries.

“Just as we are seeing political and geopolitical shifts that seem unimaginable to most people, if you just look at history, you will see these things repeating over and over again,” Dalio said. “We will be surprised by some of the developments that will seem equally shocking as those developments that we have seen.”

His comments, made on the same panel as Salesforce CEO Marc Benioff, come amid a tariff roller coaster ride for markets in recent days.

Trade policy uncertainty has added to a sense of unease on Wall Street, with investors concerned about the impact of a brewing trade war on the global economy.

President Donald Trump’s trade policies, which appear designed to rebalance the economic order in America’s favor, include tariffs against Canada, Mexico and China.

Tariffs ‘to cause fighting between countries’

When asked about the potential consequences of a simmering trade dispute, Dalio described the current state of affairs as “an extension of the patterns of history” — and singled out 1930s Germany as one example.

Dalio said there was a write-down of debt at that time, alongside a hike in tariffs to boost revenue and a buildup of its domestic base. “Be nationalistic, be protectionistic, be militaristic. That is the way these things operate,” he said.

“The issue is really the confrontation of all of this, the fighting of all of this. So, tariffs are going to cause fighting between countries,” Dalio said, adding that he was not necessarily talking about a military confrontation.

“But think about U.S., Canada, Mexico, China, and all of those types of fighting. There will be fighting, and that will have consequences, and I think that’s the main thing to pay attention to,” he said.

Dalio said he was sharing those views as a politically neutral observer, comparing his approach to that of a mechanic or doctor. “I’m not an ideologue,” he added.

https://www.cnbc.com/2025/03/12/ray-dalio-warns-growing-us-debt-will-lead-to-shocking-developments.html