Ray Dalio says debt-ceiling debate sets stage for ‘disastrous financial collapse’
“Increasing the debt limit the way Congress and presidents have repeatedly done, and most likely will do this time around, will mean there will be no meaningful limit on the debt. This will eventually lead to a disastrous financial collapse.‘”
USAGOLD note: A settlement on the debt ceiling is not the end of the road, according to Dalio. It is more a beginnning than an end. He worries about a debt crisis led by bank runs “being a run on the central bank.” The repercussions of a settlement could end up being just as deadly as a default.