New Delhi, Feb. 18 -- As the US national debt trajectory steepens, billionaire investor Ray Dalio is cautioning that history offers a clear pattern: excessive debt creation is often followed by currency devaluation and a shift of capital into alternative stores of value.

According to fresh projections from the Congressional Budget Office (CBO), US federal debt is expected to rise by roughly $2.4 trillion annually over the next decade.

Ray Dalio, founder of Bridgewater Associates LP, said that large and persistent deficits eventually undermine confidence in the reserve currency and push investors to seek protection elsewhere.

Dalio's central thesis is that debt problems are not merely accounting issues - they are confidence issues. When...