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Ray Dalio, founder of Bridgewater Associates LP, speaks during the Greenwich Economic Forum in Greenwich, Connecticut, US, on Tuesday, Oct. 3, 2023.
Bloomberg | Bloomberg | Getty Images
Bridgewater founder Ray Dalio on Wednesday warned that a "very severe" U.S. supply-demand problem could lead to "shocking developments."
"The first thing is the debt issue, we have a very severe supply-demand problem," Dalio told CNBC's Sara Eisen at CONVERGE LIVE in Singapore.
Dalio said this will require the White House to sell a quantity of debt the world is just not going to want to buy.
"That's a set of circumstances that is imminent, OK? That is paramount importance," he said, adding that most people don't understand the mechanics of debt.
Dalio said the U.S. deficit needs to go from a projected level of 7.2% of gross domestic product to about 3% of GDP.
"That's a big deal. You are going to see shocking developments in terms of how that's going to be dealt with," he added.
His comments come amid a tariff roller-coaster ride for markets in recent days. Trade policy uncertainty has added to a sense of unease on Wall Street, with investors concerned about the impact of a brewing trade war on the global economy.
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