Principles for Dealing with the Changing World Order by Ray Dalio

What people said

hayst4ck · 2024-02 · Strong recommendation

Ray Dalio has weighed on exactly your question. This is a 45 minute video that directly answers exactly your question, that is very much worth a watch: [VIDEO] The extremely quick version is that wars happen when am empire is in decline, not when they have collapsed, so we are still salvageable, but only if we get a handle on income inequality. He would say that Pax Americana has not collapsed yet, but that it is definitely in the process of collapsing. He asserts that the main identifier of empire decline is income inequality which is fueled heavily by inflation which was enabled by the abandoning of the gold standard (Have you seen that WTF happened in 1971 meme? Abandoning the gold standard is what happened. [LINK] ). When the rich get richer because they are the main winners of inflation, they start gutting institutions that can threaten their entrenched power (such as infrastructure, R&D, and most importantly education -- "we don't want people who can critically think, we want people who know how to perform a task" -- there's a move from liberal to technical education) which results in less innovation and therefore waning military strength and adaptability. As a militaries strength falters, the use of the American petrodollar for trade becomes less appealing, which would ultimately stop you from living beyond your means by powering yourself with debt/inflation. As soon as quality of life drops, civil war/revolution/civil unrest becomes much more likely, leading to inabil

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short_throw · 2023-07 · Strong recommendation

If you aren't familiar with Ray Dalio's Principles for a Changing World Order, I can't recommend it enough (both the book and the YouTube video). You'll understand a lot better where the U.S. is in it's history and why so much is the way it is. [VIDEO]

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chubot · 2023-01 · Strong recommendation

Assuming you live in the US like I do, definitely watch this video and read Dalio's book (I bought 2 copies) Principles for Dealing with the Changing World Order by Ray Dalio (2022) [VIDEO] Basically we're on the downward part of the cycle of wealth. That has NOT happened in our lifetimes, but it's happened many times before to other countries (Netherlands, Britain, China). Some things go in 150 or 250 year cycles and they're hard to see. Basically the idea is that in the long term, countries need to actually produce wealth in accordance to how much money they print. HOWEVER, the problem is that you can actually get away with NOT doing so for 50+ years -- the span of more than one generation. Particularly if you have the reserve currency of the world, as the US currently does. Dalio links a lot of our ills to Nixon's untethering of the dollar in the early 1970's. That reminds me of a good tweet -- What if your entire personality depends on low interest rates ? The idea there is that the habits and culture we've grown up with have been enforced by this distortion of wealth. --- To create wealth as a country, you need education, rule of law, cooperation, trust, etc. There has to be real output, and people have to push in the same direction. But if you can just print money instead of doing the work of those things, then why bother getting educated? Why not just rip people off? Why not rip off the government? They're just printing it anyway. So the social order is hugely affected

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