Billionaire investor Ray Dalio warns that the world is in the late stages of a major debt cycle, with the next financial shock likely coming from sovereign debt. The U.S. is facing dark times due to record federal debt, political divisions, and rising geopolitical tension. The Federal Reserve will end quantitative tightening and maintain its balance sheet near $6.5 trillion. Dalio describes this as a stimulus into a bubble, with U.S. public debt exceeding $38 trillion and annual interest costs surpassing $1 trillion. Gold prices have climbed above $4,000 per ounce, and Bitcoin is in focus. Dalio emphasizes the need for preparation and diversification to adapt to changing conditions.

Read more at Barchart: Ray Dalio Warns the Next Big Debt Crisis Won’t Come From Banks. It’ll Come From Governments.