Billionaire Dalio has predicted a "debt death spiral" for the UK

Rising costs of servicing old loans together with the need to make new borrowings at high interest rates may lead to the UK being in a "debt death spiral". This was reported by the Financial Times (FT) on January 21, citing the words of billionaire and founder of investment company Bridgewater Associates Ray Dalio.

"It all looks like the formation of a debt death spiral, because in order to service debts, we will either have to borrow more and this debt will also have to be serviced, or cut other spending, or increase taxes," Dalio said.

In his opinion, London should cut public spending and increase taxes so as not to borrow all the money at high interest rates and not to worsen the situation with existing debts.

According to the newspaper, the yield on ten-year government bonds of Great Britain has risen sharply, reaching the maximum since 2008. In addition, the volume of securities placement has also increased.

Earlier, January 18, it was reported that the UK is leaving the record number of dollar millionaires because of the updated tax policy of the Labor Party. It is noted that the UK has lost a total of almost 11 thousand millionaires in 2024. The outflow is mainly to the UAE, Italy and Switzerland.

In August last year, British Prime Minister Keir Starmer said about the economic and social hole in the British budget, the state budget deficit of € 25.8 billion, according to Starmer, due to the ineffective work of the previous government of the country headed by Rishi Sunak.