Ray Dalio, founder of Bridgewater Associates, recently warned that the U.S. economy is heading toward an “economic heart attack” unless immediate government action is taken. On Bloomberg’s “Odd Lots” podcast, Dalio explained that the country is at risk of a major financial crisis unless policymakers address the growing national debt and budget deficit.

Dalio stressed that there is a “doable solution” to tackle the deficit and prevent a debt crisis. He suggested reducing the deficit to 3% of the U.S. GDP. According to Dalio, the deficit, which is projected to reach about 7.5% of GDP due to tax cuts from the Trump administration, needs to be reduced significantly. By doing so, the U.S. could prevent its debt from rising faster than the economy, improving both supply and demand.

In fiscal year 2024, the U.S. government faced a deficit of $1.8 trillion, with spending reaching $6.75 trillion while revenue stood at $4.92 trillion, according to the Treasury Department. Dalio expressed concern that, without urgent action, the U.S. could experience an “economic heart attack” within three to four years.

The current national debt is at a staggering $36.2 trillion, having surpassed $35 trillion last summer. Dalio warned that this growing debt could soon lead the nation into a “debt death spiral.”

Dalio, a well-known investor with a net worth of $14 billion, emphasized that the consequences of ignoring the debt issue could be severe. He was on the podcast to discuss debt cycles and his upcoming book, How Countries Go Broke, set to be released in September.

Dalio’s message is clear: without addressing the U.S.’s deficit and national debt, the country faces a looming economic heart attack that could have dire consequences for its financial future.