Billionaire Ray Dalio, founder of Bridgewater Associates, warned that the U.S. Treasury market faces the risk of reduced demand from China and Japan, the two largest foreign creditors of the U.S., highlighting the market's potential vulnerabilities. The market has already experienced significant volatility this year. Dalio stated on Tuesday that about one-third of U.S. debt relies on foreign capital, a large portion of which comes from Japan and China. He indicated that China does not want to continue accumulating (U.S. debt), and that Japan, having previously "lent out a large amount of money," now wants to recoup those funds. Dalio reiterated his warning that the U.S. could face a debt crisis within the next three years, noting that some borrowers are already feeling the pressure.
