Legendary Investor Ray Dalio Breaks Down Everything You Need to Know About the Current World Economy

Tom Bilyeu's Impact Theory

Impact Theory

Education, News, News Commentary, Philosophy, Technology, Society & Culture, Business, Self-improvement

4.7 • 5.1K Ratings

🗓️ 14 May 2020

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

History’s patterns repeat, but many things (like truly severe pandemics) may only happen once in a lifetime. So if you only think about what you’ve personally experienced, you will be unprepared for the future. As a dedicated student of history, Ray Dalio is on a mission to help us weather a coming economic storm that may be even worse than what happened in the late 1920’s and early 1930’s. In this episode of Conversations with Tom, Ray Dalio and Tom Bilyeu discuss the current severe recession and the debt crisis that preceded it. And while Ray does advocate planning for the worst-case scenario, he also offers a powerful reminder that you don’t have to do this alone. This episode is brought to you by: Impact Theory University: university.impacttheory.com NETGEAR: Learn more about Orbi WiFi 6 at netgear.com/bestwifi BLUblox: Go to blublox.com/impacttheory for 15% off your order or use discount code ImpactTheory at checkout. SHOW NOTES: There’s a pattern to history, but some things only happen once in a lifetime [0:41] Ray discusses debt crises and the problem of money creation [1:29] The Federal Reserve is part of the government but outside of politics [5:38] Money is digital. So how do we know it’s going to be of value? [7:37] Ray talks about the large wealth gap and the rise of China [10:04] Look at your income, expenses and savings, and then do a stress test [12:31] Ray advocates intelligence and non-antagonism in politics [17:07] Ray discusses the success of FDR in dealing with depression and debt crisis [19:47] Ray strongly advocates for the virtues of a complete education [22:38] Tom and Ray discuss the importance of skill acquisition [27:35] You don’t need to make your decisions in your head. You can ask others. [33:56] No one is going to come to save you [36:32] You’re better off knowing that you don’t know than believing you know when you don’t [39:06] Tom talks about the need for people to aggressively get educated and acquire skills [43:04] What you don’t know is greater than anything you do know [47:42] Ray is extremely curious, and he loves learning about the world and then betting on it [50:24] When Ray was 12 years old, he started investing with his earnings from odd jobs [53:32] Ray thinks the decline of the US empire will be manageable [57:11] Ray advocates again planning for the worst-case scenario [59:57] FOLLOW RAY: WEBSITE: principles.com INSTAGRAM: https://bit.ly/2zokFsZ FACEBOOK: https://bit.ly/35PZHzi TWITTER: https://bit.ly/2YTYmGc

Transcript

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0:00.0	Everybody, welcome to Conversations with Tom. I am here with legendary investor Ray Dalio.
0:08.0	Ray, thank you so much for joining me today.
0:10.0	Pleasure.
0:12.0	So, I really wish that we were connecting under better circumstances.
0:16.0	I have made no secret about the fact that I learned more about business from principles.
0:20.0	I think been virtually any other business book that's completely influenced the way that we build our culture.
0:26.0	I know with what's going on with the economic crisis, I find myself once again turning to what you're putting out.
0:32.0	And all of the stuff that you're doing on LinkedIn is really very insightful, taking a historical perspective.
0:39.0	I love to hear a little bit about just sort of the thinking, why are you going back through all the historical stuff right now.
0:47.0	Well, as you know, the same things happen over and over again through time for basically the same reasons.
0:53.0	A lot of these things happen once in a lifetime, you know.
0:57.0	And if you don't go back and see how they worked over time, then you're in trouble.
1:02.0	So, there's a pattern.
1:05.0	I could describe the pattern, but there's a pattern that happens over and over again.
1:10.0	And we're in a particular spot in the pattern.
1:13.0	And then it's to understand it not just because it happened before, but to understand mechanistically how it happens.
1:21.0	And then one has a sense of how to deal with it.
1:25.0	So speaking of the mechanisms, what's influencing this more when you started looking back into history?
1:30.0	Are you looking for this sort of moment in the death cycle or are you looking for pandemics, a collision of the two?
1:37.0	What do you think influences this more?
1:41.0	Well, pandemics come along occasionally, but anything that's important.
1:48.0	Let me say the three most important circumstances that existed before we had the downturn, which was caused by a pandemic, but any downturn would have produced the same results.
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