This would lead to an improvement in the supply/demand balance for US debt, which in turn would lower interest rates, Dalio said.
“But because politics have become so absolutist, they feel they can’t go down this obviously best path because both their constituents and their parties will throw them out of office if they explored this more balanced approach. To me, that’s a tragedy,” Dalio said.
The Senate version of President Donald Trump’s tax and spending bill — which is facing a series of amendment votes Monday — would add nearly US$3.3 trillion ($4.2 trillion) to US deficits over a decade, according to an estimate from the nonpartisan Congressional Budget Office.
