Ray Dalio On How The Economic Machine Works (As Of October 2011)

As China 'threatens/promises' liquidity injections to its banks, Greek politicians argue over premium parking spaces, US brokers/exchanges squabble over the MF capital leftovers, and global liquidity goes from bad to worse - perhaps it is time to take a step back and focus on what really hasn't seemed to matter - the economy. Ray Dalio published his Template For Understanding back in October of 2008 and has recently updated it (as of October 2011). For your Sunday evening reading pleasure - "How the Economic Machine Works and How It Is Reflected Now". Critically, the hedge fund manager provides a framework for considering what he believes are the critical Three Big Forces: trend line productivity growth, the long-term debt cycle, and the business/market cycle.

Readers can find it here.

Ray Dalio's Template for Understanding _Oct-2011_