Prominent billionaire investor Ray Dalio is closely monitoring the precarious fiscal situation in the United States.

In an Interview aired on Thursday at the Managed Funds Association’s fireside chat, the founder of hedge fund Bridgewater Associates expressed his concerns regarding a potential debt crisis in the nation. He emphasized that the speed at which this crisis might unfold is contingent on the delicate balance of supply and demand, a factor he is closely scrutinizing. The total U.S. debt has recently breached the staggering mark of $33 trillion for the first time. This surge comes amidst ongoing negotiations among lawmakers regarding a U.S. spending bill before the critical October 1 deadline. Failure to reach a consensus on this bill could trigger a government shutdown and elevate the perceived risk associated with the nation’s mounting debt.

In recent years, U.S. debt levels have swelled significantly, particularly following a nearly 50% surge in federal spending between fiscal years 2019 and 2021, as reported by the U.S. Department of the Treasury. This surge in debt has left investors apprehensive, fearing that escalating interest rates could further exacerbate the U.S. fiscal predicament, thereby diminishing the demand for Treasury securities. Dalio expressed additional apprehensions regarding the economy, cautioning that aside from the high debt levels, there are several other headwinds that could impede growth, potentially causing a significant slowdown in the economy, perhaps down to zero growth, give or take 1% or 2%.