In 1971, the US ran out of money and defaulted on its debts. Now, they didn’t say it that way. But by moving away from the gold standard, money as we understood it ended. I expected the stock market to plunge, but it went on to rise nearly 25%. That surprised me. But when I looked into it, I discovered the exact same thing happened in 1933 and it had the exact same effect. Here’s why. #principles #raydalio #history #economics
Five big forces produce the overall Big Cycle that leads to radical changes in monetary, domestic, and/or world orders. To learn more about where we are at in the Big Cycle, check out my new book, How Countries Go Broke: The Big Cycle at the link in my bio. #raydalio #principles #politics #economics
The bond market is the backbone of all markets. Paying attention to certain market actions can tell you a lot about the supply-demand picture, and whether it’s at risk of breaking down. You learn more about what this means for all of us in my new book, How Countries Go Broke: The Big Cycle, available for pre-order at the link in my bio. #principles #raydalio #howcountriesgobroke #bondmarket
When it comes to understanding markets, you need to step back and see the bigger picture. That’s why it’s so important to have a #gameplan for investing and long-term financial investments. #raydalio #principles #politics #economics
The federal reserve is the part of the government that can create money and credit, which has significant impacts on the value of your money. Learn more about the federal reserve and its responsibilities — and how its decisions impact you — in my new book, How Countries Go Broke: The Big Cycle. #raydalio #principles #politics #economics
Change is coming. The current debt levels in the U.S. and around the world are unsustainable. To avoid bad geopolitical outcomes, we must negotiate in a calm, analytical way to get this debt to money problem under control. Learn more how the big debt cycle works and my proposed solutions in my new book, How Countries Go Broke: The Big Cycle, available for pre-order at the link in my bio. #principles #raydalio #economics #debt
Today is the launch day for my new book, How Countries Go Broke: The Big Cycle. I wrote this book because I believe now is a critical time when it comes to the global debt burden. I’ve spent a lot of time over the last 50 years as a global macro investor finding the indicators of debt problems, and I want to pass along what I’ve learned so that policymakers and individuals can try to deal with our current situation well. Through studying history, I’ve come to realize that everything happens due to cause-effect relationships that can be studied and understood. So reality works like a perpetual motion machine that began an eternity ago and will take us into the future. That perspective has driven my approach to life which has led to whatever success I have had. And I hope it will help others better understand how we got where we are, and what we need to do next to avoid bad outcomes for everyone. Our current debt situation has implications for almost all markets and economies. So if you’re interested in learning more, I hope you’ll give it a read — and I’m excited to continue exchanging ideas about this with you on social media. You can find a link to order the book in my bio. And as always, I welcome your thoughts. #principles #raydalio #debt #economics #history
So much of our current political and economic climate can be explained by debt cycles— and how those cycles build on each other over time. I explain why in my new book, How Countries Go Broke. But if you’d like more context on how all of these pieces come together, I recommend you watch my 30-minute explainer “How the Economic Machine Works” on YouTube. #principles #howcountriesgobroke #economics #debt
Artificial Intelligence was invented long before we all started talking about it. I have been using AI for a long time to help make decisions more efficiently. You can learn more about how I use this “Digital Ray” at the link in my bio. #raydalio #principles #ai #economics
We are at a critical time, and I hope my teachings are able to help make the world a better place. In order to understand where we are at in history, you have to understand the mechanics of the debt cycles. To learn more, read my new book, How Countries Go Broke: The Big Cycle, available for pre-order at the link in my bio. #raydalio #principles #politics #economics
Here’s a peek into the audio recording of my new book, How Countries Go Broke: The Big Cycle. This new book explains what I've learned about the mechanics behind big debt cycles and debt crises, and how they help drive the Overall Big Cycle, which is especially important to understanding what is happening today. I hope that you find it helpful in navigating the interesting times ahead. If you're an audiobook listener and are interested in the book, it's now available to order at the link in my bio. #howcountriesgobroke #principles @Simon & Schuster Audio