Billionaire investor Ray Dalio warned of a looming monetary crisis at Davos on Wednesday. Speaking with Fortune's Kamal Ahmed, Dalio stated the world faces a breakdown of the monetary order. The core issue: a choice between printing money and triggering a debt crisis.

Dalio highlighted the rapidly rising U.S. national debt, now at $38 trillion, as a key driver. He criticized a lack of realism among leaders regarding economic, environmental, and political threats. He also pointed to a paralysis in Washington, where policymakers and bond traders are making dangerous assumptions.

Dalio's warning arrives amid growing concerns about global debt levels and inflation. His comments could pressure governments and central banks to address fiscal imbalances. Markets are likely to react to Dalio's assessment, potentially increasing volatility.

Dalio has long been a vocal critic of U.S. fiscal policy. He previously warned that future generations will bear the burden of current debt. His latest remarks intensify these concerns on a global scale.

The immediate future hinges on how governments and central banks respond. Monitoring debt levels, inflation, and policy decisions is now critical. The world awaits concrete action to avert the potential crisis Dalio foresees.