For those looking for an elegantly simple explanation of the modern credit economy and why it has cycles, I strongly recommend watching the following video from Ray Dalio. The video is a simplified explanation of how Ray Dalio, founder of Bridgewater Associates, one of the world’s largest hedge funds, views the mechanics of the modern economy. It is pretty spot on and viewers will have a better understanding for just how dangerous the current environment is given the fact that global debt has exploded higher in recent years, much faster than income growth and productivity in most developed nations.
The video is about 30 minutes long, but it’s worth every minute. Enjoy!
P.S. Follow us on Twitter at The Sounding Line @TapsCoogan!