The US economy is facing a ‘heart attack’ due to Donald Trump’s spending plans, a leading hedge fund manager has warned.
Ray Dalio, the founder of asset manager Bridgewater Associates, said the US President’s plan to cut taxes while ramping up government spending would trigger a financial meltdown and push American debt to unsustainable levels.
‘When the economy, and this heart attack of sorts, comes along, then you’re going to find that the voters are not going to be very happy,’ Dalio told Bloomberg.
He added that the situation would be ‘very much like the 1970s, which was very much like the 1930s’.
Dalio was referring to the period of low growth and inflation, dubbed ‘stagflation’, which gripped the US economy in the 1970s and the Great Depression of the 1930s that followed the Wall Street Crash of 1929.
The hedge fund manager – a critic of Trump – predicted that as a result, the US would face a major economic crisis in the next ‘three years, give or take a year’.
Warning: Ray Dalio (pictured), founder of asset manager Bridgewater Associates, said Trump’s plan to cut taxes while ramping up spending would trigger a meltdown
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