The stereotype of the Asian sort of work culture is like okay you do your job and that produces cheap relatively high quality goods. China does not have that culture however they have an incredible work ethic. They have a huge emphasis in education and so what that allows them to do is look at somebody who's far out ahead and study them, say Dalio. The question is once they catch up and they don't have anybody to follow can they lead is this new silk road or whatever they're calling it built in the road thing actually going to attract people?
Transcript
chevron_right
Play full episode
chevron_right
Transcript
Episode notes
Ray Dalio, founder of Bridgewater Associates, has written several books on the world of investing and the economy in general based on his years of experience as manager of the world’s largest hedge fund. In the latest of his ‘Principles’ series, Dalio applies his quantitative approach of macro investing to analyzing countries, seeking to identify the factors that lead to strength such as education and work ethic, as well as lagging indicators such as a reserve currency that allow a country to spend beyond its means but ultimately presage a fall from dominance. Notably, Dalio sees China’s rise to the top of global power as likely, with America, while ahead, slowly declining. Tonight we debate the merits of his analysis, as well as the overall validity of a global macroeconomic approach that overlooks key factors such as demographics in forecasting long term power status.
