Ray Dalio warned of a looming monetary crisis at Davos on Wednesday. The billionaire investor told Fortune's Kamal Ahmed that the world faces a breakdown of the monetary order. He presented a stark choice: print money or allow a debt crisis to unfold.

Dalio highlighted the rapidly rising U.S. national debt, currently at $38 trillion, as a key factor. He criticized the lack of realism among leaders regarding economic, climate, and political threats. He previously stated future generations will bear the burden of this debt through devalued dollars.

Dalio described a paralysis in Washington, with policymakers and bond traders making assumptions about each other's actions. His comments underscore concerns about the long-term stability of the global financial system.

Dalio has consistently voiced concerns about the U.S. debt and its potential consequences. His latest warning adds urgency to the ongoing debate about fiscal policy and monetary stability. The immediate impact on markets remains to be seen, but Dalio's words are likely to fuel further discussion among economists and policymakers.

The coming weeks will reveal how governments and central banks respond to these warnings. All eyes will be on upcoming economic data and policy decisions for indications of the path forward.