Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts

Core Viewpoint - Ray Dalio emphasizes that gold and non-fiat currencies are becoming stronger stores of value due to the devaluation risks faced by major currencies amid increasing global debt pressures [1][2]. Economic Concerns - The excessive spending and spiraling debt of the U.S. government are deemed "unsustainable," leading to a potential fiscal crisis that threatens the monetary order [2][3]. - Dalio highlights that the U.S. debt has reached a critical point, with a need for the government to sell an additional $12 trillion in debt to cover a $2 trillion deficit, $1 trillion in interest payments, and $9 trillion in maturing borrowings [5][6]. Investment Recommendations - Investors are advised to diversify their portfolios, allocating around 10% to gold as a hedge against currency devaluation [3]. - The supply-demand imbalance in the market is exacerbated by the government's inability to balance its debt levels, despite proposals to reduce the fiscal deficit to 3% of GDP [6]. Currency Dynamics - The U.S. dollar has depreciated over 10% against other major currencies this year, yet these currencies have also weakened relative to gold, which is now the second-largest reserve currency globally [4]. - While the U.S. dollar will maintain its role as a medium of exchange, the increasing prominence of the Chinese currency in global trade may diminish the dollar's influence [7].