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August 2015 Perspective: A Beautiful Deleveraging

August 01, 2015
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This month’s perspective is a little different. It is a 30 minute animated video by Ray Dalio.

If you don’t recognize the name, Ray Dalio is the founder of the world’s largest hedge fund firm, Bridgewater Associates, with some $160 Billion under management. He was named by Time as one of the 100 most influential people in the world and Bloomberg as one of the 50 most influential people. He also frequently appears in interviews and is cited in various publications.

 

We are sending you Dalio’s video, How the Economic Machine Works, because it is offers important lessons and insight valuable to individuals and nations alike.  According to Bill Gates, “This knowledge would help everyone as investors and citizens. Watching is a worthwhile 30 minute investment.”

 

Wondering why Greece is an intractable tragedy? Why the Federal reserve has not raised rates? What about the difference between borrowing to finance productive activity versus consumption? This video offers insights.

 

In the US, we are currently in a period that Dalio calls “a beautiful deleveraging.”  He explains why the economy is not really shrinking, but it’s not really growing strongly either.

 

As we wrote in our very first monthly Perspective, “Our goal is to share third party perspectives and commentary that we think may impact your thinking, deepen your understanding, enhance your awareness and shift your perspective in a way that benefits you, your family and your clients.”  We hope this video does just that: http://www.economicprinciples.org/