Moody's also cited House Republicans' "One, Big, Beautiful Bill," which is attempting to make temporary tax cuts established in the 2017 Tax Cuts and Jobs Act permanent, along with new tax cuts as well. Moody's estimates an extension would result in an additional $4 trillion to fiscal deficit, excluding interest payments, over the next decade.

Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.