Trump Optimistic on U.S. Debt, Ray Dalio Warns of Challenges

Despite President Trump's optimism about the US's ability to grow out of its $37 trillion debt, Ray Dalio's research on debt cycles suggests that such confidence may be misplaced, as debt often outpaces income and can lead to crises when growth can no longer sustain debt levels. Dalio warns that current policies risk entering a late-stage debt cycle, where the illusion of prosperity masks underlying vulnerabilities, potentially leading to a sharp contraction.