Economic Doom
RAY DALIO’S WARNINGS
Ray Dalio, the founder of the world’s largest hedge fund, came out and warned that the U.S. is heading straight for an economic heart attack , within the next 3 years.
Yes, you heard that right. The man who predicted the ’87 crash now sees America’s future darker than an electricity bill without a discount. And he’s not saying it just to scare people. He backs it up with numbers.
According to him, entrepreneurs don’t speak out because they fear retaliation from the government. Yes, you read that correctly. Silence is not golden—it’s fear.
Meanwhile, U.S. debt has surpassed $37 trillion and has reached 124% of GDP.
If things continue like this, by 2055 it could hit 156%. In other words, for every dollar the country produces, it owes 1.5. Fun times. And as if that wasn’t enough, the government is getting involved in the private sector. Example? Intel. Where state support looks more like China than America.
And right about here, our old friend Jerome Powell shows up. The chairman of the FED. The man Trump wants to fire. Why? Because he doesn’t like the FED’s decisions. Very democratic. That’s how economic stability is built… or not?
ECONOMIC PRESSURE IN EVERYDAY LIFE
And all this isn’t just economic theory. It has a real, practical impact. Prices remain high, inflation supposedly has gone down, but supermarket shelves disagree.
Mortgage payments are up 60% compared to 2020, making home ownership an impossible dream for young people. Households are drowning in credit cards with interest rates above 20%. As if worrying about your Netflix password wasn’t enough, now the Mastercard bill is keeping you up at night.
The average American feels their future is darker than ever. And how could they not, when only 1 in 4 believes living conditions will improve in the future? The rest? They just hope the fridge doesn’t break down.
REALITY CHECK
But let’s pause for a moment.
Yes, all this sounds serious. And maybe it is. But allow me to say something:
It’s one big… NOTHING BURGER (for now).
Why? Because American companies are on FIRE. Most are making profits as if they were selling oxygen.
The S&P 500 index is up nearly 20% compared to last year. And this, in a year of recession fears, social unrest, and other scary headlines. Numbers don’t lie, and these numbers show profits. Of course the big companies will always have profits to keep their stock prices high.
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@tipu curate
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It's such a big contrasts between what's happening at Wall Street versus the Main Street. I feel most of us expecting the gap to be filled are in for a rude awakening when the gap between both camps keeps expanding in the coming years. For now, it's indeed a nothing burger that's not ready to be served LOL
that is a divergence that will soon lead to a collapse
Another heck of a ride for households. I feel this credit card of a thing is a trap government have used to keep citizens at their terms. Instead of looking for way to bring economy to bearable stage they give you access to collect more undervalued assets like paper notes with interest upto 20%. Indeed one dark path especially for households spending it all on food and health.
We need a debt jubilee.
This would have been one good way to salvage citizens.
Yeah a crash is due and it has been. It's crazy to imagine how economies would ever solve the current problems that have been created by 15 years of extremely cheap money. Best you can do is to have your finances in order and be able to watch from the sidelines. Ideally, there'll be this mega bull before the crash do we can all cash out big time
For the US the problem is the deficit they have to cut spending now and lower it to a balanced sheet otherwise they will default eventually
Yeah so they created DOGE to cut costs, then realized it's only "vanity" stuff they were doing there, and they they started blowing up the deficit even more via the BBB.
The debt is the ten ton gorilla in the living room. It's sleeping right now, but it's going to chimp out at some point and wreck the whole place. There is hope. If the US really does tariffs right, revamps the tax system, and knocks the rent seekers down a peg or two or three, we might do well. This country is LOADED with natural resources and bringing manufacturing home will do a lot of good.
I believe the problem is the deficit that will grow to 8% the debt can be managed if they cut the spending!!
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