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Billionaire investor and Bridgewater Associates founder Ray Dalio warned that recent U.S. debt buyback plans announced by Treasury nominee Scott Bessent are part of a broader macroeconomic trend signaling an impending debt crisis. Dalio highlighted that expanding sovereign obligations and aggressive fiscal maneuvers are unsustainable over the long term, potentially undermining confidence in fiat currencies. To hedge against this rising fiscal instability, Dalio reiterated his preference for hard assets, explicitly recommending gold and Bitcoin as essential components of a diversified portfolio. Markets tend to react strongly to Dalio's macro assessments, and his endorsement reinforces the growing narrative of digital and physical assets serving as reliable stores of value during periods of structural debt devaluation. Moving forward, market participants will closely monitor U.S. Treasury auction demand, fiscal deficit projections, and yields on long-term government debt. Capital flows may increasingly shift toward alternative assets like precious metals and cryptocurrencies if sovereign debt concerns escalate further.
