Ray Dalio warned America’s in a ‘debt death spiral’, with US dollar at risk. Here’s the shockproof asset he recommends

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Jing PanThu, January 1, 2026 at 1:35 PM GMT+1 7 min readJemal Countess/Getty ImagesMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.Hedge-fund billionaire Ray Dalio has a stark warning for America — one that centers on its mounting debt crisis, with national debt standing at a record-high $38.4 trillion (1).In an interview with CNBC in early 2025, Dalio painted a grim picture of the nation’s financial trajectory, saying it was on course to “a debt death spiral (2).”Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPApproaching retirement with no savings? Don’t panic, you're not alone. Here are 6 easy ways you can catch up (and fast)“A debt death spiral is that part of the cycle when the debtor needs to borrow money in order to pay debt service, and it accelerates,” he cautioned. “And then everybody sees that, and they don't want to hold the debt.”Highlighting the dire situation, he notes that the U.S. federal government now spends almost $1 trillion a year in interest payments to service the national debt.A report from Fortune in early December related that the Treasury had already paid out $11 billion per week in the fiscal year 2026 to service the nation’s debts, representing 15% of federal spending for the year (3).To make matters worse, the country continues to run deficits, spending more than it receives. The U.S. Department of the Treasury reports that the federal government ran a $1.83 trillion deficit in fiscal 2024 when it spent $6.75 trillion but only took in $4.92 trillion in revenue.The Congressional Budget Office (CBO) projects that the federal budget deficit will reach $1.9 trillion by the end of 2025 (4).When a borrower carries an overwhelming amount of debt, lenders begin to worry about repayment, increasing the risk of default. But according to Dalio, the U.S. is unlikely to default. The bigger threat? Depreciation of our currency.“There won't be a default — the central bank will come in, and we'll print the money and buy it,” he says. “And that's where there's the depreciation of money.” Americans are all too familiar with the central bank’s quantitative easing (printing money) during the pandemic — and the resulting loss of purchasing power.Inflation surged to a 40-year high in June 2022, with the consumer price index (CPI) soaring 9.10% year over year (5). 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