Ray Dalio On How The Economic Machine Works

Tyler Durden's picture

"It's never different this time." Ray Dalio's recent discussion at the Council for Foreign Relations is probably the most in-depth access to his 'model' explanation of the way the world works we have encountered. From bubbles to deleveragings and how the inter-relationships of various cycles bring about consistent trends and corrections, the clip below and full readings are perhaps useful as we tread Wile E. Coyote-like off the edge of traditional monetary policy and encounter apparently different environments that in fact have occurred in perhaps alternate ways again and again over time. Great weekend viewing/reading on the three ways out of the current crisis that the Fed clearly believes we are in and the inevitability of his findings that "in all deleveragings, in the end they print money."

 

Full CFR discussion and Q&A...

 

Follow-Up Foreign Affairs Interview:

 

 

And the full PDF (here) of Dalio's model-process: