Ray Dalio on the US Debt Cycle, Rising Yields, and Global Capital Flows

Ray Dalio, founder of Bridgewater Associates, joins Insight to explain the mechanics of debt cycles, why the US debt trajectory matters, and how rising long-term yields reflect a supply-demand imbalance. He discusses the implications for asset prices, government spending, and foreign demand for US debt.

■ Debt cycle mechanics and US fiscal trajectory
- Debt accumulation, debt service costs, and spending squeeze
- US spending vs. revenue and crisis timing
■ Interest rates and credit rationing
- 30-year yields near 6% and supply-demand imbalance
- Sectors likely squeezed: housing, auto loans, data centers
■ Global capital and geopolitical constraints
- Reduced foreign demand from China, Japan, and Middle East
- Adversarial creditor-debtor dynamics and financing needs

This interview is suited for viewers interested in macroeconomics, fixed income, and geopolitical risk. It offers a framework for understanding debt cycles and capital flows rather than specific investment advice.