Debt increasing budget passed, there are risks according to Ray Dalio and the Book of Habakkuk
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Donald Trump and various others in the USA are pleased that a debt-laden bill passed the US Senate:
Senate passes stopgap funding bill
March 15,, 2025
https://www.cbsnews.com/video/senate-passes-stopgap-funding-bill/
President Donald Trump on Friday congratulated Senate Minority Leader Chuck Schumer for “doing the right thing” by backing the Republican-led bill to avert a government shutdown, a choice that’s put the New York Democrat at odds with many in his party. https://www.politico.com/live-updates/2025/03/14/congress/trump-congratulates-schumer-00230577
March 14, 2025
But the effect of the agreement is to continue federal spending at the same exaggerated level that has recently prompted outrage from debt hawks. …
Rep. Thomas Massie (R., Ky.) was the only House GOP member to vote against the continuing resolution. He argued it merely extended President Joe Biden’s spending levels and said that Republicans have continued to kick the can on significant cuts to discretionary spending.
“The closer you get to the next election, the less spine these people have,” Massie said in a video posted to X earlier this week. “I hope there is a fight to cut spending. I just don’t see it.” https://www.barrons.com/articles/ai-stocks-nvidia-amazon-microsoft-coreweave-ipo-ddee09ff
The USA is drowning in debt, but many do not realize that.
A couple of days before this bill passed the US Senate, Ray Dalio put out a warning. Fortune reported the following:
If you think the current outlook is bad, just wait until the White House can’t find anyone to buy its debt, warns Ray Dalio
March 12, 2025
Ray Dalio warns the U.S. faces an imminent debt crisis as its debt-to-GDP ratio climbs past 122%, with experts worried foreign buyers will pull back or raise interest payments, making borrowing unsustainable. He suggests drastic measures may be needed, including debt restructuring, political pressure on buyers, and potentially cutting payments to certain countries. … what will rock the boat is America’s national debt, Ray Dalio has warned, and it’s a crisis coming down the pipe “imminently.”
Speaking at CONVERGE LIVE in Singapore, the Bridgewater founder explained, “We have a very severe supply and demand problem. Some people think we’ll handle it because we’ve handled it so far. I don’t think they understand the mechanics of debt.”
What is concerning experts like Dalio now more so than in the past is America’s debt-to-GDP ratio: the amount Uncle Sam owes in comparison to the value of its output and hence, how capable it is to repay its debts.
In 2013, Amercia’s debt went beyond the value of what it produces and, at the time of writing, has risen to 122% of GDP, per the St Louis Fed.
This figure is also set to swing even higher—a sweep made all the more dramatic by the increasing burden of interest payments required to bankroll the debt. …
Dalio continued that, at some point, the U.S. will have to “sell a quantity of debt that the world is not going to want to buy.” This is an “imminent” scenario of “paramount importance,” Dalio said.
The man worth $16.2 billion isn’t the only economic expert to have this opinion. https://fortune.com/2025/03/12/national-debt-burden-ray-dalio-foreign-government-pressure/
Regarding the USA’s debt situation, Nick Giambruno wrote the following last September, where he also quoted Ray Dalio:
The Debt Spiral Crosses the Point of No Return …
Drowning in a Stadium
Imagine you’re sitting in a large sports stadium that is completely watertight. A single drop of water is placed in the middle of the stadium, and the amount of water then doubles every minute.
At first, the growth seems slow. You won’t even be able to notice the water until it’s almost too late.
Let’s say it takes 48 minutes for the stadium to become full of water. At 47 minutes, the stadium would only be half full, and at 46 minutes, it would only be a quarter full, and so on.
By the time you become aware of the water’s presence, you are only a few minutes away from drowning.
The stadium and chessboard examples are metaphors to illustrate the power of exponential growth.
With exponential growth, things can seem under control or manageable for a long time. Then, an inflection point is reached, and the situation rapidly becomes overwhelming, growing to unimaginable scales.
Exponential growth is a concept that is initially deceptive because humans are more accustomed to recognizing linear growth rather than exponential patterns.
That’s precisely why many people are missing what could be the most important financial trend of the decade.
The Debt Spiral
Ray Dalio is one of the world’s most successful hedge fund managers.
His success is due to his consistent ability to get the Big Picture right.
He recently said this:
“We are at a point in which we are borrowing money to pay debt service.
When you keep having debt growth faster than income growth, that means you have debt service encroaching on your spending, and you want to keep spending at the same time.
As that happens, there is a need to get more and more into debt. It accelerates.
We are at the point of that acceleration. We are near that inflection point.”
Dalio is warning about the explosive nature of the US government’s compounding debt situation. …
The financial position of the US government has been gradually deteriorating for decades, so it’s not surprising that many people are complacent. They’ve long heard about the debt problem, and nothing has happened.
However, it is now reaching the tipping point.
That’s because the US government is now borrowing money to pay the interest on the money it has already borrowed, as Dalio noted. Politicians are adding more debt to solve the problems of prior debt.
It’s creating a self-perpetuating doom loop.
It will result in the total debt growing not linearly but exponentially.
The debt increases at a faster rate over time because it is compounding.
Each calculation period adds more interest to the total amount owed, which requires more borrowing and causes a larger interest expense. …
Dalio says the US is near the inflection point where the debt growth will accelerate and explode into previously unimaginable levels.
I think he is correct, and that has enormous implications. …
But I’m not just talking about a stock market crash or a currency collapse…
It’s something much bigger… with the potential to alter the fabric of society forever.
It’s created an economic situation unlike we’ve ever seen before, and it’s all building up to a severe crisis on multiple fronts.
It could all go down soon… and it won’t be pretty. 09/10/24 https://internationalman.com/articles/the-debt-spiral-crosses-the-point-of-no-return/
Yes, the US debt is rising and is dangerous.
Ray Dalio keeps warning that foreigners will not want the US debt–that is consistent with prophecies in the Bible.
Debt will end in disaster for the USA.
The time will come, according to Bible prophecy, when the nations of the world will no longer accept the pledges (US Treasury Bills and Notes) of the indebted one:
2 Then the Lord answered me and said:
“Write the vision
And make it plain on tablets,
That he may run who reads it.
3 For the vision is yet for an appointed time;
But at the end it will speak, and it will not lie.
Though it tarries, wait for it;
Because it will surely come,
It will not tarry. (Habakkuk 2:2-3)
Notice that the word of God states it will tarry, take a while, but the results will surely come. And that the result is that people should run (flee) because of it.
Here are some details about what is coming and why:
6 “Will not all these take up a proverb against him,
And a taunting riddle against him, and say,
‘Woe to him who increases
What is not his — how long?
And to him who loads himself with many pledges’?
7 Will not your creditors rise up suddenly?
Will they not awaken who oppress you?
And you will become their booty.
8 Because you have plundered many nations,
All the remnant of the people shall plunder you,
Because of men’s blood
And the violence of the land and the city,
And of all who dwell in it. (Habakkuk 2:6-8).
Please pay attention to the fact that that above is a prophecy for the appointed time of the end–essentially the time of the Great Tribulation (Matthew 24:21). The USA has been accumulating pledges in the form of US Treasury bonds and notes, and is the most indebted nation of all time. It is descendants of Israel, like the USA, that are prophesied to have debt issues with foreigners if they turn from God’s laws (cf. Deuteronomy 28:43-44)–that is consistent with Habakkuk 2:6-8. The above prophecy is NOT a reference to the nation calling itself Israel as it has nothing compared to USA debt.
As far as how much the USA is indebted to foreigners, notice the following:
Foreign creditors already hold a net claim of $22.5 trillion (and growing) on U.S. assets. Many of these creditors will be inclined to sell American stocks and bonds rather than buy more — especially if they are encouraged by Trump to raise cash to buy American exports. Foreign producers who, for decades, have exchanged their manufactured goods for American stocks and bonds would stop reinvesting export earnings. (Amoss D. From Biden to Trump: Navigating the Economic Ship Through Troubled Waters. Jim Rickard’s Strategic Intelligence, December 2024, p. 10)
The USA has been setting itself up for the penalties prophesied by Habakkuk.
Consider that the prophecy in Habakkuk says what will happen is so bad, that people should run who read it. That is, they should seriously consider what this means and take the appropriate steps.
Foreign creditors will rise up.
The Bible clearly warns that an indebted people will be destroyed by people whose language that they do not understand, and that the destruction will be fairly total:
43 The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. 44 He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail. 45 Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed…47 “Because you did not serve the LORD your God with joy and gladness of heart, for the abundance of everything, 48 therefore you shall serve your enemies, whom the LORD will send against you, in hunger, in thirst, in nakedness, and in need of everything; and He will put a yoke of iron on your neck until He has destroyed you. 49 The LORD will bring a nation against you from afar, from the end of the earth, as swift as the eagle flies, a nation whose language you will not understand, 50 a nation of fierce countenance, which does not respect the elderly nor show favor to the young. 51 And they shall eat the increase of your livestock and the produce of your land, until you are destroyed; they shall not leave you grain or new wine or oil, or the increase of your cattle or the offspring of your flocks, until they have destroyed you. 52 They shall besiege you at all your gates until your high and fortified walls, in which you trust, come down throughout all your land; and they shall besiege you at all your gates throughout all your land which the LORD your God has given you (Deuteronomy 28:43-45,47-52).
7 The rich rules over the poor, And the borrower is servant to the lender. (Proverbs 22:7)
13 And the Lord said, “Because they have forsaken My law which I set before them, and have not obeyed My voice, nor walked according to it, 14 but they have walked according to the dictates of their own hearts…16 I will scatter them also among the Gentiles, whom neither they nor their fathers have known. And I will send a sword after them until I have consumed them.” (Jeremiah 9:13,14a,16)
12 One-third of you shall die of the pestilence, and be consumed with famine in your midst; and one-third shall fall by the sword all around you; and I will scatter another third to all the winds, and I will draw out a sword after them. (Ezekiel 5:12)
Most will not believe, but that was expected:
6 “Don’t say such things,” the people respond. “Don’t prophesy like that. Such disasters will never come our way!” (Micah 2:6, New Living Translation)
16 … You say, ‘Do not prophesy against Israel, And do not spout against the house of Isaac.’ (Amos 7:16)
People will not want to hear or believe! See also Preparing for the ‘Short Work’ and The Famine of the Word.
Watch also the following:
Here is a link to our video: And the Debt Goes On…
The amount of debt increase has been accelerating.
While many hope that Donald Trump and his team will change that, the Bible is clear that the USA will be taken over (cf. Daniel 11:39) and debt will be a factor per Habakkuk 2:6-8.
The Bible also tells of a time when the most faithful will flee (Revelation 12:14-17)–but also that people should be “gathered together” before that happens (Zephaniah 2:1-3).
More on that can be found in the article: There is a Place of Safety for the Philadelphians. Why it May Be Near Petra.
Some items of possibly related interest may include:
There is a Place of Safety for the Philadelphians. Why it May Be Near Petra This article discusses a biblical ‘place of safety,’ Zephaniah 2 to ‘gather together,’ and includes quotes from the Bible and Herbert W. Armstrong on fleeing to a place–thus, there is a biblically supported alternative to the rapture theory. Two sermon-length videos of related interest are available Physical Protection During the Great Tribulation and Might Petra be the Place of Safety? Here are two related items in the Spanish language: Hay un lugar de seguridad para los Filadelfinos. ¿Puede ser Petra? and Existe un Lugar de Seguridad.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
Is God Calling You? This booklet discusses topics including calling, election, and selection. If God is calling you, how will you respond? Here is are links to related sermons: Christian Election: Is God Calling YOU? and Predestination and Your Selection. A short animation is also available: Is God Calling You?
Spiritual Samaritans: Old and New Who were the Samaritans? Do the represent true Christianity or something else? Here is a link to a related sermon: USA in Prophecy: Samaria.Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? In the Spanish language check out ¿Quién es el Rey del Norte? Here is a link to a video titled: The Future King of the North.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Donald Trump in Prophecy Prophecy, Donald Trump? Are there prophecies that Donald Trump may fulfill? Are there any prophecies that he has already helped fulfill? Is a Donald Trump presidency proving to be apocalyptic? Three related videos are available: Donald: ‘Trump of God’ or Apocalyptic? and Donald Trump’s Prophetic Presidency and Donald Trump and Unintended Consequences.
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