Unveiling the Future of Nations: Ray Dalio's New Book 'How Countries Go Broke' Explores Debt Cycles and America's Fiscal Fate

Pre-Order Now - The Acclaimed Investor Predicts U.S. Financial Insolvency, Offers Solutions, and Discusses AI's Impact on Global Power with David Friedberg on All-In Podcast

Ray Dalio's latest book, coming out in September, "How Countries Go Broke: Principles for Navigating the Big Debt Cycle, Where We Are Headed, and What We Should Do," (available for pre-order) gets into the history of how empires rose and fell over the last 500 years and how it relates to the United States today. This book is a follow-up to his successful books on the same subject, “Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail” and “Principles for Navigating Big Debt Crises.”

For the last few years, Dalio has been sounding the alarm that our nation’s debt and deficit spending will lead to its failure, and if we are not careful, we will cede to Chinese dominance. He is now putting his thoughts into this new book.

So, who is Ray Dalio? He is one of the many billionaires most Americans have never heard of, even though he founded Bridgewater Associates in 1975, leading it to become the world’s most-valued hedge fund. He has tremendous global experience and has managed assets for pension funds, sovereign wealth funds, institutional clients, et al.

Dalio explains the “Big Debt Cycles” concept and how the U.S. will enter financial insolvency if the federal government’s spending does not significantly change. He then goes into a detailed analysis of past government insolvencies, showing how government debt becomes so high that it creates an inescapable crisis. He feels this is where the U.S. is today. He also offers advice on how all this can be mitigated.

Last week, Ray Dalio was in a one-on-one interview with All-In-Podcast co-host David Friedberg, and they discussed these subjects. They discussed the unsustainable levels of our government debt related to GDP and the federal government’s income and how neither felt we would grow out of it. Dalio got into the idea that the U.S. may find itself in the painful experience of debt restructuring and taking on measures like austerity.

They also discussed how AI and other technologies will create rapid advancements that will disrupt traditional job markets and affect geopolitical power dynamics, especially in the U.S.-China tech race.

Lastly, they discussed the political challenges of making the necessary spending cuts to thwart our demise. They agreed that such an effort would likely lead to social unrest in the country as the financial spigot would be turned off.