By Ray Dalio, Bridgewater Associates,
YouTube Link: How the Economic Machine Works
Ray Dalio, founder of hedge fund Bridgewater Associates, recently released a video – How The Economic Machine Works (in 30 minutes). In it, he shares the economic template that has guided him over the past 30 years.
Dalio identifies 3 main forces that drive the economy:
1. Productivity growth
2. Short term debt cycle
3. Long-term debt cycle
3 Key Takeaways are the following:
1. Don’t have debt rise faster than income
2. Don’t have income rise faster than productivity
3. Do all that you can to raise your productivity
Tags: a beautiful deleveraging, Borrowing creates debt cycles, bridgewater associates, credit and the economy, credit matters most in the short run, debt and income, debt changes a lot, debt cycles, drivers of the economy, economic lessons, global economy, interest rates, investment lessons, investment wisdom, long term debt cycle, macroeconomics, monetary policy, productivity and debt, Productivity does not change much, productivity growth, Productivity matters most in the long run, QE, Ray Dalio, short term debt cycle