(Bloomberg) -- Billionaire Ray Dalio, founder of Bridgewater Associates, said the US is seeing stubbornly high inflation along with elevated real interest rates.

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“We are at the beginning of a late, big-cycle debt crisis when you are producing too much debt and have a shortage of buyers,” Dalio said Wednesday at the Bloomberg Invest conference in New York.

He said while interest rates won’t go much higher, the economy will get worse, and that could cause more internal strife if the US continues to have political fragmentation.

Dalio, 73, gave up control of Westport, Connecticut-based Bridgewater, which runs the world’s largest hedge fund, last year. He’s been focusing on building out his family office, and plans to set up a branch in Abu Dhabi.

He’s worth $16.5 billion, according to the Bloomberg Billionaires Index.

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