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 major concern. He criticized a lack of realism among leaders regarding economic, climate, and political threats. He fears future generations will bear the burden of this debt through devalued dollars.

Dalio described a paralysis in Washington, with policymakers and bond traders making dangerous assumptions about each other's actions. His comments immediately sparked discussion among economists and financial analysts. Many are now re-evaluating their strategies in light of Dalio's warning.

Dalio has long been a vocal critic of U.S. fiscal policy. He has repeatedly warned of the potential consequences of unchecked debt accumulation.

The immediate future hinges on how governments and central banks respond to these pressures. Dalio's warning suggests a period of heightened volatility and uncertainty in global markets.