How the Economic Machine Works – Ray Dalio | PREI 038

Mar 24, 2016

Ray Dalio, the founder of Bridgewater Associates and a top economic thinker, shares captivating insights about how the economy functions. He breaks down the economy as a collection of transactions, emphasizing the significance of credit cycles and productivity growth. Dalio explores how debt influences economic dynamics and discusses the critical balance between income and debt for stability. He also examines deleveraging's impact and the pitfalls of austerity during downturns, making complex concepts accessible for smarter investment decisions.

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Intro

00:00 • 4min

The Building Blocks of Economic Transactions

04:01 • 5min

Understanding Economic Cycles: Productivity vs. Credit

08:52 • 3min

The Credit Economy and Its Cycles

11:28 • 9min

Understanding Economic Deleveraging and its Impact

20:10 • 4min

Economic Deleveraging Dynamics

24:37 • 8min

Balancing Debt and Income Growth for Economic Stability

32:37 • 4min

I think you are going to love this episode! What I’m excited to share with you today is the audio portion of one of the greatest videos ever produced that explains how the economy works. More specifically, it’s titled “How the Economic Machine Works”. The 30-minute video was produced and narrated by Ray Dalio. Who is Ray Dalio? Ray Dalio is an American businessman and the founder of the investment firm Bridgewater Associates. He is one of the wealthiest people on the planet, with an estimated net worth of $15.4 billion (Forbes, 2015). And Time magazine considered him one of the Top 100 most influential people in the world. I reached out to Ray last week and asked him if I could share his great explanation with my listeners, and he graciously agreed. Ray says that an economy is simply the sum of the transactions that make it up. A transaction is a simple thing. Because there are a lot of them, the economy looks more complex than it really is. Instead of looking at it from the top down, it’s much easier to understand if we look at it from the transaction up. Regardless of how important the economy may be to you, I think having a basic understanding of it will make you a smarter investor. And having a better understanding of it will help make you far more successful in all your financial and investment decisions. I’m sure many of you will want to listen to this episode more than once because of the amount of content packed into this audio-only reply. My suggestion is to listen to it at least once, then click the link in the show notes to watch the animated video. The animations give it another dimension that helps you visualize and better understand the concepts. So don’t feel overwhelmed if this is your first time hearing this. Plus, Ray shares his three rules-of-thumb that you can take away and apply to your own personal economy. Now, just sit back and enjoy this audio-only portion of “How the Economic Machine Works”. If you missed our last episode, be sure to listen to Viewing Properties Just Got Easier – WeGoLook. – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Enjoy the show! Learn more about your ad choices. Visit megaphone.fm/adchoices