Ray Dalio says America is facing a ‘debt death spiral’ — but you can protect your portfolio with these 3 assets

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The aboriginal 1970s were a turbulent clip successful America — marked by soaring inflation, an lipid situation and a crisp driblet successful banal prices that near investors scrambling for harmless havens.

And, according to billionaire capitalist Ray Dalio, past whitethorn beryllium repeating itself. Surging prices and monolithic authorities spending could punctual investors to erstwhile again question the worth of fiat currencies and the insubstantial assets tied to them.

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“It’s precise overmuch similar the aboriginal ’70s … what bash you enactment your wealth in?” Dalio said astatine the Greenwich Economic Forum (1). “When you’re holding money, you’re putting it successful a indebtedness instrument. And erstwhile you person specified a proviso of indebtedness and indebtedness instruments, it’s not an effectual storehold of wealth.”

In fact, Dalio has agelong warned astir the sheer size of America’s nationalist debt, hovering adjacent to $39 trillion and climbing successful February 2026 (2). He has described the concern arsenic a imaginable “debt decease spiral” — wherever the authorities indispensable get conscionable to wage the involvement connected existing debt. Over time, this process accelerates (3).

If the nationalist indebtedness fig feels abstract, Dalio has a much idiosyncratic warning.

The plus he’s talking astir is thing astir everyone holds successful 1 mode oregon another, whether successful slope accounts oregon nether mattresses: the U.S. dollar.

In a station connected X, Dalio shared a Q&A helium had with the Financial Times (4). When asked what would hap to bonds and the dollar if a politically weakened Federal Reserve were to fto ostentation tally hot, his reply was blunt.

“It would pb bonds and the dollar to spell down successful value, and if not rectified, would pb to them being an ineffective storehold of wealthiness and the breaking down of the monetary bid arsenic we cognize it.”

That remark couldn’t person travel astatine a much delicate clip for the Federal Reserve. President Donald Trump has repeatedly attacked Chair of the Federal Reserve Jerome Powell, precocious nominating financier Kevin Warsh to regenerate him. A erstwhile ostentation hawk, Warsh present favors little involvement rates — aligning with Trump’s aims (5).