Tag Archives: Ray Dalio

Here is my latest podcast.

“This set of circumstances is unsustainable and certainly can no longer be pushed as it has been pushed since 2008. That is why I believe that the world is approaching a big paradigm shift,” Dalio wrote. Governments are also battling large deficits, while pension and health care liabilities are increasing. The latter circumstance, he says, will result in an escalation of the wealth gap battle as the government decides whether to cut benefits, raise taxes or print money to address it. This...

Dalio, however, agrees that MMT has weaknesses. He said, “The big risk of this approach arises from the risks of putting the power to create and allocate money, credit, and spending in the hands of politically elected policy makers.” He states that the system has been designed in a way that “highly skilled people” are in charge of decision making rather than politically motivated people. He added, “At the same time it is inevitable that we are headed in this direction.” This is both a...

Three Major Forces Dalio says this model has guided Bridgewater for over 30 years, and that there are three major forces that shape the economy: 1. Productivity Growth Productivity growth, which is measured as a percentage of GDP, grows over time as knowledge, technology, and innovations help to raise our productivity and living standards. 2. Short-Term Debt Cycle Usually lasting 5-8 years, the short-term debt cycle is a repeating pattern that occurs as credit expands and contracts.3....