How The Economic Machine Works by Ray Dalio

**How The Economic Machine Works by Ray Dalio**



View Time:31:Minutes



Economics 101 — “How the Economic Machine Works.”

Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, “How does the economy really work?” Based on Dalio’s practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

To learn more about Economic Principles visit:

[Also Available In Chinese] 经济这台机器是怎样运行的:

[Also Available In Russian] Как действует экономическая машина. Автор: Рэй Далио (на русском языке):

27 thoughts on “**How The Economic Machine Works by Ray Dalio**

  1. Gianluigi Cuccureddu

    Https:// – Worried about the current financial system DICTATING your daily life? Through a cooperative bank in formation for, by and of the People, we can create an alternative financial system that is SUPPORTING your daily life. Become co-owner through : A real & feasible solution. Fighting the system that exists for hundreds of years is not realistic and not necessary! Let’s take ownership and responsibility together.

  2. mich sf

    Actually you can increase money not only by being productive. You can also increase it through investing in stocks or crypto.

  3. Louie Louie

    The presenter oversimplifies, but fails to address greedy central economic planners who could care less for recessions as they fill their coffers and that of their friends while the debt bubble bursts for everyone else. Though he nods that way when he says, "if policymakers…", but policymakers have NOT EVER been able to determine market values with fiat currency, EVER. This is why ALL fiat currencies have faileda nd millions starve and die. These "wealth" and debt (death) cycles occur BECAUSE of central economic planning and its incompetence, allowed to remain because of our ignorance.

    In addition, the velocity of currency (how much people spend) during a recession, and especially during a depression is not necessarily stimulated by quantitative easing (currency creation) because you cant make people spend newly printed currency if people feel that the economy will do worse and that their currency is untrustworthy because of deficit spending, and long the threat of a Weimar like hyper inflation made possible by the return of previously exported inflation. And why so much deficit spending? WAR, ENDLESS WAR, and endless promises of wealth redistribution. During these times, people will save, and this is deflationary. Or they will exit the debt cycle paradigm and store their wealth in something that retains its value in the long run, like gold and silver, and other commodities.

  4. MegzeeR

    Bull pucky! It works because the few have convinced the many that their worthless trinkets of metal disks, printed pieces of paper or, as in today, numbers printed on an "official" ledger are worthy for equal exchange for the actual products and services the idiot chattel perform that humanity uses to try and sustain life as needed or comfort life as desired. How the economic "machine" works is the same as how a magician convinces his audience that he has magical powers. Both use illusion and ignorance of it's secrets, which is that there is no magic in the magician nor any worth in the currency that we workers trade for our goods and services we PRODUCE. Most have figured out that magicians are no longer magicians but illusionists who are taught the art of fooling the audience. I am just waiting for the day that the masses have figured out that what we call currency is nothing but the illusion and worth nothing and the products created by our work and services is actually the REAL WEALTH of our society and not the illusion of today's currency.

  5. KK C

    Do any of you smart people know where we’re currently at in the long term debt cycle? If the depression started in 2008 and lasted 2-3 years, and reflation lasts 7-10 years, then comes leveraging, are we currently in the reflation period, the “lost decade?” If so, we have a good 50+ years ahead?

  6. A's Networks Technology & Electrical Contractor

    So central bank gets the initial value of printed money and in exchange they get solid assets out of thin air

  7. Timothy Lee

    Your whole explanation of how the system works is completely theoretical. You don't even get into who OWNS the 'means of production'. Your example shows YOU as productive but your productivity is your own. NOT if you work for someone else, the more productive 'you' are don't necessarily mean 'you' are rewarded for that increase. Theoretical, it's a democratic system, actually: not so much.

  8. mwc PhD

    I watched this over a few days bc my kid wasn't sleeping well. Completely worth it. Wish this was required for every human over 18.

  9. Live, Learn, Apply and Share

    I know nothing about economy and just loved this video. I will repeat it over and over and over!


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