How The Economic Machine Works by Ray Dalio (10 MIN SUMMARY)

HOW THE ECONOMIC MACHINE WORKS BY RAY DALIO // This is a summary of Ray Dalio's brilliant 30 min video, "How The Economic Machine Works". How the economy works is not complicated - as Ray Dalio explains, it's actually really simple. In this video, I explain the 3 drivers of how the economic machine works. There's the short term debt cycle, the long term debt cycle, and there's productivity. Find out how these 3 work together to cause economic expansions and recessions.

***ATTENTION: I have a new Instagram and TikTok handle @itsrosehan ***
That's my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.

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***THINGS MENTIONED IN THIS VIDEO! 👀***

💫 LINK TO RAY DALIO'S ORIGINAL VIDEO:

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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***MY FAVORITE MONEY TOOLS 🖤***

YNAB (I literally can't live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)

Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):

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DISCLAIMERS & DISCLOSURES ❤

This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

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SAY HI ON SOCIAL! 👋🏼

[rohhilchhabra]

You're an actual legend. Dalio's video is my anchor when the markets don't make sense and I always go back to it. Great summary of my favourite video on youtube!

[outlaw]

That 30 minute video is one of my favorite videos on economics. I watch it often to refresh my memory and then apply the principles. Nice to see that you watch it as well!

[RDing]

Hey Rose, another great video! In Ray's original video he mentions that if one adds the total spending/total quantity of goods for all markets this is the best indicator to get an overview of the economy. Do you know of any resources (websites, organizations etc.) where one can find some of these metrics? Is there a way to view and keep track of short and long term debt cycles? Would it be possible to do a video on this in the future? This is something I am trying to understand better and any advice would be helpful. Love your content and all the great information you have shared with us so far. Thanks so much!!

[NewHampshireJack]

We got the big picture in less than 10 minutes!!! Excellent and thank you for bringing this subject up for study and conversation. I think it worth our time to pay close attention to what Ray Dalio writes and speaks about, he did not get to where he is with a stupid stamp on his forehead.

[walterlafleur]

This is a perfect example of how selection algorithms on social media are destroying our society. We need a 10 minute summary for a 30 minute video that is already as concise as can be? Who in their right mind wouldn't be planning for the next collapse cycle right now? If it isn't clear, I am referring to a societal collapse, not an economic one.

[samoui]

U did a great job .. now I understand how the economic workers ..love u ❤💋

[houmanmilani]

Great, I feel more knowledgeable after each video. Now I understand what quantitative easing is and where it is coming from. Thanks again...
By the way it's great to see your emails :)

[riccardoredaelli]

Your summary is very good. But I have a question: where can I find the data required to put this template in practice so that I can map the situation in real-time and prepare for a recession/depression? I mean: where do I find the data for total spending, total quantity sold, total credit, debt to income ratio and so on mentioned in Dalio's video? Thanks

[preetheshputhran]

Great insight learned a lot from this channel

[floriandc]

Rose, a more recent hyperinflation reference than Germany in the 1920s is Venezuela!

[larryteslaspacexboringlawr]

thank you for macro economic educational video

[patrickk.]

Just stumbled across your channel thanks a lot for the good content, there are not so many financial videos where I am from (Austria) :)
Looking forward to see more videos!

[CollosalTrollge]

watching ill let u know grasp it

hi from Philippines

[lohti]

We are in late short term debt cycle again in 2022 because Fed printed too much credit in 2020 that causes inflation now.

[txbraveheart]

Knowing what you know, are you willing to make a prediction on when the next recession "could" happen? Difficult I know to predict recessions. I just do not see it happening in the next 12 months..

[hammer]

You should never use the credit limit on your credit card unless you can pay it off in a month. Take out a loan at 5% rather than pay 15%.

[skao]

Explain so well better than any economist pro

[dankiburz]

Rich don't pay taxes because they have learned how money works. Read "Rich Dad Poor Dad" by Robert Klyosaki

[aeriagloris]

this is a great video, and warned me about the possible crisis on last year. I've also read antifragile from Nicholas Taleb, now its time to get back to stock market. I'm glad only 1/6 of my cash was on stocks, now its time to do good deals

[cmktom]

Good summary in this video. Ray Dalio is a smart guy, but a lot of what he says and writes is way above the head of the average individual. Too bad, because he tries really hard to break things down.