Billionaire Ray Dalio warns U.S. debt puts global economy on the brink

On Wednesday, billionaire investor Ray Dalio warned that the United States is entering a "particularly risky period" as rising national debt and political instability converge.

He predicts a potential "economic heart attack" between 2026 and 2028 because foreign investors are becoming increasingly reluctant to hold American Treasury bonds. This reluctance stems from a massive supply-demand imbalance, where the government must issue more debt than the global market is willing to buy at current interest rates. Investors in major global markets like India and Canada are being told to prepare for currency volatility and a massive withdrawal of foreign capital if the U.S. dollar weakens.

Analysts will now be watching upcoming Treasury auctions to see if big international buyers continue to pull back from American debt.