1 / 7

How The Economic Machine Works by Ray Dalio

According to Ray Dalio the economy is like a machine. At the most fundamental level, it is a relatively simple machine but yet a misunderstood machine. If more people learned how it works it would help investors anticipate the great deleveraging and market changes. This can help reduce losses and help investors find new opportunities.<br>For Latest Stock Market News, Visit Smart Money Gains.<br>

smartmoneygains
Download Presentation

How The Economic Machine Works by Ray Dalio

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How The Economic Machine Works by Ray Dalio Presented By Smart Money Gains

  2. Introduction • According to Ray Dalio the economy is like a machine. At the most fundamental level, it is a relatively simple machine but yet a misunderstood machine. If more people learned how it works it would help investors anticipate the great deleveraging and market changes. This can help reduce losses and help investors find new opportunities. • For Latest Stock Market News, Visit Smart Money Gains.

  3. Short-term and Long-term Debt cycles and trend life productivity growth are the 3 big driving forces of the economy and apply to all countries economies. Short-term debt is debt that must be paid within one year. It shouldn’t be much of a surprise to learn that long-term debt is debt that is not due for a year or more.

  4. The short-term debt cycle, also known as the business cycle, is primarily controlled by central banks’ policies that a) tighten when inflation is too high and/or rising uncomfortably because there isn’t much slack in the economy (as reflected in the GDP gap, capacity utilization and the unemployment rate) and credit growth is strong; and b) ease when the reverse conditions exist.

  5. The long-term debt cycle top occurs when 1) Debt Burdens are high and/or 2) monetary policy doesn’t produce credit growth.

  6. If you want to gain a clear understanding of the driving forces behind the economy, learn why economic cycles occur as well as get a full breakdown of important concepts such as credit, interest rates, leveraging and deleveraging this video is a great start.

  7. CONTACT US: • For more of Latest Financial News, Visit Smart Money Gains.

More Related