"I have no, well, I don't have any expectations, but I also have no illusions. I want you to tell me what his goal is," he says of Chinese investor Jim Rogers. "He wants to be children for his name and his company to go on and continue to do well." China's emphasis in education has helped it compete with other countries that are not as tech-savvy or advanced at the same time they've had a huge economic advantage over America.
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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.
