CW 453 – Ray Dalio- How The Economic Machine Works with Founder of the Bridgewater Associates Investment Firm

In a break from the traditional format of the Creating Wealth Show, today features the audio version of Ray Dalio’s educational and informative video How the Economic Machine Works. Dalio discusses a range of topics in-depth to provide a full overview of how the economic machine functions – just a few examples are the inflation/deflation model, de-leveraging and the difference between credit and actual money.

Key Takeaways

01.24 – The premise for today’s show is to gain an insightful overview of economics, thanks to Ray Dalio.

08.45 – The amount of free, available education options really question why students pay so much for a College degree.

11.27 – Transactions are the lynchpin – they create the three forces which ultimately drive the economy.

14.37 – The main difference between borrowers and lenders is that the former want to buy something they can’t afford, while the latter want to make money into more money.

21.13 – Credit doesn’t necessarily have to be a bad thing; when the purchases can be used to create income it can be a positive, growth-creating technique.

22.53 – Ray Dalio takes us through his interpretation of the inflation/deflation cycles.

26.35 – Debt repayments and changing credit-worthiness are issues which have an effect worldwide.

32.07 – Because you can’t always guarantee that a borrower won’t default on their loan, so debt-restructuring is sometimes a necessary step.

38.00 – Printing money can have a positive effect on the economy, but it has to be done very specifically.

Mentioned in this episode

How the Economic Machine Works by Ray Dalio