billionaire investor ray dalio thinks us government bonds are becoming risky as the country falls deeper into its debt crisis i think its a very risky investment dalio said monday on cnbcs  squawk on the street  when asked about treasurys the risk is not measured in whether you pay back their only obligation is to give you money that they can print history has shown repeatedly that when you are in that position where governments cant pay back but their obligation is to pay back what the printing press can produce the founder of bridgewater associates the worlds largest hedge fund said debt service payments on treasurys are increasingly encroaching on government spending meanwhile a rapid rise in interest rates has led to big losses at institutions including the federal reserve he said the federal reserves losses are largely due to holding bonds that are gone down in value therefore lost money and funding with an interest rate thats too high dalio said another factor is potential sanctions against foreign countries for buying treasurys the widely followed investor said other countries still are increasingly feeling worried about sanctions dalio said if you get them to sell the bonds then its a real problem so because that means either interest rates go up a lot more central banks have to come in and print a lot thats the thing that we have to be wary of in such an environment equities tend to do better than government bonds dalio said he recalled that in the 1971 when president richard nixon ended dollar convertibility to gold the stock market rallied the valuations of money the printing of money and so on supported equity market relative to a bond market it devalues money dalio said the s  p 500 has risen more than 12 this year back above 4300 near its highest level since august spx ytd mountain spx in 2023