Ray Dalio warns of economic pain after Congress passes Trump’s spending bill

Congress officially passed the president Donald Trump’s “Big and beautiful bills” and billionaire Ray Dalio warns of economic consequences that could include cuts in spending, massive tax increases and large-scale printing of money.

“Unless this path is fixed immediately, there is a high possibility of serious painful confusion unless the budget deficit is raised from about 7% (domestic production) to about 3% by adjusting spending, taxes and interest rates.”

Dario The bill saidas the law is currently signed at the president’s desk, it is expected to create a $2 trillion deficit a year, with approximately $7 trillion expenditures expected to raise revenues of around $5 trillion.

This deficit has increased national debt and promoted debt over the next 10 years, and is now equivalent to around $230,000 per person Our Familyto about $425,000 per family, he warned.

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Paying this debt becomes even more expensive. Interest and principal payments on debts increase from around $10 trillion, of which $1 trillion is interest, which amounts to about $18 trillion or $2 trillion. This will reduce “unthinkable” spending. Tax increase Or a lot of “printing and devaluing money, pushing interest rates to an attractively low level,” he said.

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“This printing and devaluation is not good for those who hold bonds as a storage of wealth. As the US financial market is the backbone of all capital markets, which is the backbone of our economic and social conditions, what’s bad for bonds and the US credit market is bad for everyone,” Dario said.

Last month, Dario similarly sounded an alarm over American chronic spending on Fox Business Network’s “The Claman Countdown.”Economic heart attack. ”

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“We spend 40% more than we’re taking in. This is a chronic problem,” he said. “So what you’re looking at is that your debt repayment payments don’t start squeezing, not squeezing, so it’s like the arterial plaque squeezing your purchasing power.

On Thursday afternoon, Congress passed Trump’s “big, beautiful bill” after consecutive sleepless sessions in both the House and Senate. The bill promoted Trump’s policies on tax, border, defense, energy and national debt, and passed the House slightly, primarily by partisan votes.

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Two House Republicans, Thomas Massey and R-KY. , and R-Pa. All but Brian Fitzpatrick of the 218-214 voted for the bill passed 218-214.