How the Economic Machine Works (2014)
How the Economic Machine Works [Animation] by Ray Dalio

      
  
  
  
    
      New York Times Bestseller
      Principles for Dealing with
      The ChangingWorld Order
      Why Nations Succeed and Fail
    
    
      Principles for Dealing with the Changing World Order examines history’s most turbulent economic and political periods to reveal why the times ahead will likely be radically different from those we’ve experienced in our lifetimes—but similar to those that have happened many times before.

      
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      How does the economy really work?
      This simple but not simplistic video by Ray Dalio, Founder of Bridgewater Associates, shows the basic driving forces behind the economy, and explains why economic cycles occur by breaking down concepts such as credit, interest rates, leveraging and deleveraging.

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      Principles for Dealing with The Changing World Order
      This new 40-minute animated video shares the key ideas found in Ray’s best-selling book of the same title.

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      “This knowledge would help everyone as investors and citizens. Watching is a worthwhile 30 minutes investment.”
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      “Ray Dalio’s ‘Template’ may be unconventional but it casts strong light on how the economy actually works.”
      Paul Volker
    
  
  
  
    
      “Forget econ 101. Take a look at the lessons in Dalio 101.”
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      “Explains macroeconomics in a practical way.”
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    conversations



    Conversations on the Changing World Order
    Listen to recent interviews between Ray and Henry Kissinger, Fareed Zakaria, David Rubenstein, and others
    Visit Ray's Youtube Channel 





    
        
    Henry Kissinger at Center for Strategic and International Studies
    CSIS Trustee and Counselor Henry A. Kissinger and Ray bring together their unique strategic perspectives on statecraft and economies to discuss the state of the world and what lies ahead.
    
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    Fareed Zakaria at the Council on Foreign Relations
    Fareed and Ray discuss the changing world order, including the international economic environment’s trajectory, the economic and security implications of the current global geopolitical tensions, and lessons from analogous historical periods.
    
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    David Rubenstein at the 92nd Street Y
    Ray discusses the cycle of economic history in Changing World Order on “The David Rubenstein Show: Peer-to-Peer Conversations.” They cover the rise of China, challenges in cryptocurrency, how meditation enables better decision making, and advice to new investors in light of current events.
    
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    Hank Paulson’s Straight Talk Podcast
    Ray and the former US Treasury Secretary discuss the current economic situation, US-China relations, and the most important principles for our world leaders.
    
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    Michael Moritz at the Commonwealth Club of CA
    Ray joins Michael Moritz to discuss five centuries of economic history to better understand current events. They cover the historical role of banking institutions in dealing with debt, rising internal and external conflicts, and the role of knowledge and technology.
    
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    CNN Quest Means Business
    On CNN “Quest Means Business,” Ray explores the six identifiable stages of a nation’s economic status and why the progression of these stages is predictable but not inevitable. Ray offers practical optimism for the US, if the country is able to do what’s required to remain strong.
    
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    Andy Serwer at Yahoo Finance
    Ray joins Andy Serwer on Yahoo Finance “Influencers” to discusses the forces behind inflation, how the Us-China standoff will unfold, and how it will affect the global economy.
    
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    Lex Fridman Podcast
    Ray chats with Lex Fridman about the trajectory of the US’s Big Cycle, rising US-China conflict, Ray’s friendship with Henry Kissinger, and the vulnerabilities of investing in Bitcoin.
    
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    Investors Podcast
    Ray joins William Green on “The Investor’s Podcast” to talk about Changing World Order and the economic crossroads the US faces. They cover China’s rapid rise, the investing trade-offs with Bitcoin, what it means to be “radically truthful,” and how meditation builds resilience.
    
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    An examination of how the economic machine works
    A thought-provoking interview between Ray Dalio and Larry Summers, President Emeritus of Harvard University and former US Treasury Secretary.
    
    
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        The Changing World Order
    





    
    
        
        
            Citations, Bibliography, and Index

             Citations, notes, and sources from Principles for Dealing with the Changing World Order, along with an index to the book.
 
                        
                
                
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            A Deeper Look at Capital Wars

             Additional research on capital wars as described in Principles for Dealing with the Changing World Order, looking at major historical cases.
 
                        
                
                
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            Large Drivers of Life Expectancy Through Time

             A quick summary of some of the largest death events in history, as described in Principles for Dealing with the Changing World Order.
 
                        
                
                
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research papers



  
  
    
    
      
         Why and How Capitalism Needs to Be Reformed 
         A look into Ray Dalio’s perspective on capitalism, where and why it is failing, and some thoughts about how it can be reformed to produce better outcomes. 
        
        
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         Paradigm Shifts
 
         Identify the paradigm you’re in, examine if and how it is unsustainable, and visualize how the paradigm shift will transpire when that which is unsustainable stops. 
        
        
          Download the PDF 
          
        
        
      
    
  
  
  
    
    
      
         It’s Time to Look More Carefully at “Monetary Policy 3 (MP3)” and “Modern Monetary Theory (MMT)”
 
         This article is for folks who are interested in economics, especially about how monetary and fiscal policy will work differently in the future. 
        
        
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         Our biggest economic, social, and political issue 
         The Two Economies: The Top 40% and the Bottom 60% 
        
        
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         Populism: The Phenomenon 
         This report is an examination of populism, the phenomenon how it typically germinates, grows, and runs its course. 
        
        
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         Productivity and Structural Reform 
         An in-depth look at productivity and structural reform and what it means for whether countries succeed or fail 
        
        
          Download the PDF 
          
        
        
      
    
  
  
  
    
    
      
         Primer on Universal Basic Income 
         Universal Basic Income is one of several ideas floating around for dealing with the income/opportunity gap. Dalio is sharing a briefing paper that he and his research team prepared. 
        
        
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