This is a fast-paced trip through the mechanics of the global economy—what makes the wheel go round. The animations are terrific and the tone is entertaining and informative. It quickly covers the whole economic landscape while revealing the hidden levers that underlie government debates and policy, debt, and the global economy.
It’s all here—booms, busts, de-leveraging, balancing inflation (printing money) and deflation (spending cuts, debt restructuring, higher taxes), the Fed, and yes, government.
Watch this and you’ll immediately be smarter than anyone in Congress, on talk radio, or cable TV. It may help you learn enough about these things that you won’t be so easily misled by either sound bites or endless rhetoric.
Oh heck, just watch it.
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The video is by Ray Dalio and his firm Bridgewater Associates, a $150B money manager out of Westport, CT. that pioneered the risk parity strategy back in the mid-90s. Dalio is listed as #31 in the recent Forbes 400, worth about $13B. He’s a macro-investor, which means he invests broadly in the global economy. He’s not a speculator or stock picker.
Yea, he’s rich, but giving the lie to being fooled by randomness, he’s also pretty smart, which accounts for why this video is so interesting. On any given panel of financial types in suits, Dalio is the fish out of water—brainy, unconventional, provocative. His father was a musician, he grew up in Queens and went to LIU, then HBS, then a stint on Wall Street before founding his firm in his New York apartment.
So go ahead, watch it.
It’s better than 21 hours of blather any day. And a whole lot shorter.