As you can see, the economy works like a machine. In the short-term debt cycle, spending is constrained only by the willingness of lenders and borrowers to provide and receive credit. When credit is easily available, there is an economic expansion. When credit isn’t easily available, there is …
Jan 09, 2021 · Tuesday, March 31, 2020 How The Economic Machine Works by Ray Dalio Transactions are the economy -When we exchange money, transaction is created-One person spending is another person’s income Credit is important and creates economic growth -Temporarily spend more than we earn-Borrowing stimulates economic growth Short term debt …
HOW THE ECONOMIC MACHINE WORKS: The economic machine is simple, but people don’t understand it, leading to economic suffering. While the economy seems complex, it is underpinned by simple transactions driven by human nature and repeated zillions of times. THREE FORCES DRIVE THE ECONOMY: Productivity Growth Short-term Debt Cycle. Long-term Debt …
How the Economic Machine Works Few simple parts and a lot of different transactions. 3 main forces that drive the economy Productivity growth Short term debt cycle Long term debt cycle Intro Transactions Economy: sum of all transactions. Transaction: money in exchange for goods and services. Market: all the buyers and sellers that make transactions.
Who is Ray Dalio? First, read about Ray Dalio’s background and then learn about his early career and later involvement at the famed firm, Bridgewater.
Dalio had a C average in high school and attended a local college, C.W. Post. But he enjoyed college since he could study things that he was actually interested in. He majored in finance and graduated in 1971 with nearly perfect grades, which got him into Harvard Business School.
If you can come out of no place and create something like Bridgewater Associates, the world’s largest hedge fund, the founder Ray Dalio must be one heck of a smart man. Some perspective is needed here, because as Dalio articulates from every forum that matters, “Be precise.”.
President Trump’s team is leaving the ship. Even as this dispatch is being written, Gary Cohn , the chief economic advisor to the Trump administration, has expressed his displeasure at the way things are going, and has suggested he may be on his way out. On his part, Dalio is petrified.