How The Economic Machine Works by Ray Dalio

This story represents well how today's political class understands money, credit, economic cycles, etc. But unfortunately for the rest of us, the political class has a very poor understanding of economics. Probably the most harmful fallacy in this video is the assertion that consumer spending drives economic growth. That's just crazy. By definition, consuming reduces wealth. What increases wealth and quality of life is saving, investment, innovation, and production.

Even the name of this video gives away it's own misunderstanding. The economy is not a "machine". That's a horrible analogy. An economy is a complex, self-regulating, dynamic process of interactions among millions of cooperating individuals. It's not like an engine or mechanism, but rather more like a flock of birds, or an ecosystem. And because it has such a dynamic and complex nature, interventions by central banks and governments usually create disorder and do harm.

KEYNESIAN TRAAAAASH!!!!

People they use credit cards and then go bankrupt

oh boy... so our lovely bankster pulls out shamanic tricks so that the deleveraging is beautiful... FOR HIM!!! For people the deleveraging would be beautiful if the politico oligarchical culprits were JAILED so that everyone will remember it and this brutal WORSENING OF THE DEBT CYCLE BY BUBBLES will not repeat again.

man we need to change this monetery system !!!!!!!!!

this is why u dont debt..if you want more money...wotk harder

spending does not drive the economy.. Production and savings drives it. If there is no production it doesn't matter if you have currency to spend if there is nothing to buy. This is keynsian nonsense. He misueses the word "money". All this credit is not money by the strickt definition there is no intrinsic value to it. It is a debt based medium of exchange called "fiat currency" and there is never enough principle in existence to cover the interest. It is a game of musical chairs that cause these cycles and reak havock on the economy because of the inherent fraud in fiat currency. Perpetual debt by indavidual or goverments means we need to work harder and harder to maintain the same living standard It litterally steals wealth from the "aggregate" thru "inflation" transfering that wealth to lenders aka banks and also governments. Pay close attention to his example of a "credit free economy" it is the solution. If we had real money based on "productivity growth" rather than debt, these vicious cycles could not exist.

The Petrodollar gives the heavily printed dollar its intrinsic value. The US prints trillions, why don't you think it hyperinflates? Hence the 7 wars in the Middle East and why we overthrew Gaddafi and Saddam Hussein. They didn't want to trade their oil in the dollar.

I love you Ray Dalio!

This guy just literally gave everybody the secret to becoming rich for free! and dumb Americans reaction is to pitch their best conspiracy theories! Wow if you are so smart why are you here better yet why aren't you rich?

no word on compound interest?! the interest and compound interest will always make the down movement of the curve lower than the up curve high as said in the film towards the end. the reserve bank even though named "federal" is owned by a few private and secret groups and individuals, which through the power of printing money control the "government" and buy/ steal whatever they like and write their own laws and anything else that this superpower inheres. most people won't wake up until they can't buy food and loose their jobs and homes. less money for education, welfare, healthcare etc. to stay in control this small group supports war and anything else that suppresses the masses to "recycle" the down curve. there might be too many people consuming too much on this planet and some put themselves in charge to care about this problem.

now, if dollars and euros etc. can't be trusted we should think about if the block chain technology (bitcoin) is a valid option for exchange to us as it's decentralisation and other favourable attributes by nature make it resistant to many problems of the contemporary global financial system. money has only value if we use and trust it. the bitcoin technology has made tremendous progress since it's invention and you can now charge debit cards with https://bitpay.com/ or buy in several online shops.

Couple of words..... GOLD AND SLIVER

Does any one know how can I learn to make a video like this ?

why pay back debt...when you can just borrow until you die. this is the US mentality today. all feel government will forgive debt. look at student debt.

lol.... Greece is an example why the credit factor took over income. productivity has many different definitions.

cycles are bubbles folks.

No, I thank You!

so when does he get to the part where most of the people are paid in paper manufactured by other few people that dont produce nothing else but that paper ?

It is a good presentation but it doesn't explain how wealth gap increases.

nice view of economic, at least I know what's the mean of credit

This is a great video!