Tag Archive: Ray Dalio

Be Generous and Expect Generosity from Others

2025-08-18

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If you're not generous with others and others aren't generous with you, you won't have a quality relationship.

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Ray Dalio’s Advice for Young Adults in Their 20s

2025-08-13

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THESE are the most important things for 20 year olds to consider. #raydalio #principles #advice #motivation #lifeadvice

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Is Real Estate a Good Investment in 2025?

2025-08-11

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My view is that buying and holding real estate is not an effective investment strategy in our current economic environment, for a few reasons. 1) Real estate is more interest rate sensitive than it is inflation sensitive, so given our current circumstances it is likely to go down in real terms 2) It is a fixed asset that is easy to tax, which limits its impacts on your ability to diversify 3) Real estate is nailed down, so investing in it makes...

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How to Build a Healthy Financial System

2025-08-07

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If we want to resolve our current income, wealth, and productivity gap, we need to get back to the basics. We need good education, so our children are productive and can work well together. We need a civil society with rule of law, and good capital markets that produce good income. And we need to double down on the fundamentals — earning more than we spend, and having more assets than liabilities. Do all of that, and we’ll be in great shape.

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The Importance of Having a Reserve Currency

2025-08-06

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When an empire runs out of its own money, it is able to increase the supply of money. However, printing more money causes borrowing to increase creating a financial bubble. I urge you to watch “The Changing World Order” on my YouTube channel to understand how, and what it means for all of us. #principles #raydalio

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Will We See the U.S. Dollar Backed By Gold Again?

2025-08-05

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The U.S. dollar used to be backed by gold — and it’s not farfetched to think we may be headed there again in the future. History shows us that the same cycles repeat time and time again. One such cycle is related to currency devaluation. Once people start to lose trust in the fiat system, we see a specific cause and effect reaction occur. 1) Governments print a lot of money 2) They pay off the debt with the cheap money 3) Nobody wants to hold...

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Ray Dalio’s Thoughts on China & Diversification

2025-08-01

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My principles around investment risk are the same during periods of turbulence (like we’re seeing now with tariffs) and periods of calm. The most important thing is to pick the size of your exposure. For me, it all comes back to finding 15 good, uncorrelated return streams. #principles

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Ray Dalio Explains Money Vs Credit

2025-07-30

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In an advanced economy, credit does more good than bad. But it’s important to remember that borrowing creates cycles — and if the cycle goes up, it eventually needs to come down. I explain why this is particularly important today in my new book, How Countries Go Broke. But if you’d like more context on how all of these pieces come together, I recommend you watch my 30-minute explainer “How the Economic Machine Works” here: &t=1444s...

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The Big Cycle: How Great Powers Rise

2025-07-28

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When great powers rise throughout history, they generally do so for the same reasons. These successful new orders are typically started by powerful revolutionary leaders doing four things: 1) Winning power by gaining more support than their opposition 2) Consolidating power by converting, weakening, or eliminating that opposition 3) Establishing systems and institutions that make the country work well 4) Creating systems that pick successors well...

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Ray Dalio’s Update on U.S. Government Debt

2025-07-23

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The basic picture has not changed — if the US doesn’t cut the deficit to 3% of the GDP, and soon, we risk facing an economic heart attack in the next three years. The good news is that these cuts are possible. If we change spending and income (tax returns) by 4% while the economy is still good, the interest rate will go down as a result and we’ll be in a much better situation. And we know this kind of balance is possible because it happened...

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The Invention of Capitalism in Building Powerful Empires

2025-07-21

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What can the former Dutch Empire teach us about the importance of capitalism in driving long-term success? #principles #raydalio #history #capitalism

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How Japan Dealt With Their Debt Problem

2025-07-18

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What happens when a country mismanages its debt? In 1990, Japanese policymakers decided to deal with its debt obligations by printing a lot of money to buy bonds. They further devalued the currency by giving bondholders significantly lower interest rates than in the US. As a result, Japanese bonds lost 45% relative to US bonds and 60% relative to gold over the next few years. That had a real impact on the average Japanese worker, who lost a...

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Ray Dalio Talks with CNBC’s Squawk Box About How the System Breaks Down Once a Lifetime

2025-07-16

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The world order is now changing in a way that I described in my book and video Principles for Dealing with the Changing World Order. For a complete picture I encourage you to read the book or you can watch the animated video on my channel. #raydalio #principles #politics #economics

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Will the United States Government Go Broke?

2025-07-15

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In 10 years, the US government will be $55-60 trillion in debt (which will be 7-7.5 times government revenue) because there will be $25-30 trillion of additional borrowing. That amounts to about $425,000 of debt per American family. When I calculate the supply and demand for this debt, I don’t see enough buyers to buy the debt the US needs to sell, which will cause big problems. We can avoid the worst-case scenario, but we need to act now. To...

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My New Book How Countries Go Broke: The Big Cycle

2025-07-14

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I’m very happy to learn that my new book, How Countries Go Broke: The Big Cycle was selected by @barnesandnoble as one of their Best Business Books of the year. The book conveys what I’ve learned over the past 50 years as a macro investor about the mechanics of how countries go broke — and what that means for the US today. I hope you’ll read it and learn about it so that you understand what we’re dealing with, and what you can do to navigate the...

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What Happens When a Country Accumulates Too Much Debt?

2025-07-11

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History shows us that having too much debt during an economic downturn leads to a classic, self-reinforcing cycle where: 1) The empire can no longer borrow the money to repay its debts 2) It prints a lot of new money, which devalues the currency and raises inflation 3) Living standards decline, leading to the rise of political extremism 4) Turbulent economic conditions undermine productivity and there is conflict about how to divide the shrinking...

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My Honest Thoughts on the United States’ Tariffs

2025-07-09

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I’ve gotten a lot of questions on the recent Trump tariffs and their impact on the global economy. There is a belief that tariffs will bring manufacturing back to the United States, I am uncertain of that. You can learn more about why, and what the current big debt cycle the United States is going through in my new book, How Countries Go Broke: The Big Cycle. #raydalio #principles #politics #economics

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How Domestic and World Orders Change

2025-07-07

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An order is a governing system that helps people deal with each other in a structured way. There are internal orders for governing within countries, and a world order for governing between countries. Orders typically change after wars, when revolutionary new forces defeat weak old ones. When this happens, new agreements and treaties are signed that detail how global governance and monetary systems will work moving forward. And a new world order...

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How Government Debt Reduces Your Buying Power

2025-07-03

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History tells us the preferred path for government policymakers trying to deal with too much debt is lowering interest rates and devaluing the currency the debt is denominated in. Doing this is a very hidden way of reducing wealth, because as your currency goes down, it makes it look like other things are going up. But despite the downsides, this wealth shrinkage and reduction in buying power is favored by policy makers precisely because its...

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The Challenge of Absolutist Politics

2025-07-02

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After spending time in Washington, DC discussing the budget deficit with senior people on both sides of the aisle, it’s clear to me that we are unlikely to change the debt trajectory we’re on and avoid the painful consequences. While virtually everyone agrees on the need to address our debt problem in a balanced way that includes tax increases and cuts to benefits, they also agree that they cannot speak up because politics have become absolutist....

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