TIP498: Ray Dalio's Book - Big Debt Crises & How the Economic Machine Works

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Business, Education, Investing

4.6 • 3.6K Ratings

🗓️ 29 November 2022

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE YOU’LL LEARN: 00:04:24 - How Dalio defines credit and debt. 00:08:55 - Why too much debt can be an issue for the global economy. 00:12:13 - The difference between the short-term and the long-term debt cycle. 00:13:02 - Why credit is the primary driver of our economy and leads to bubbles. 00:14:45 - How deflationary and inflationary deleveragings eventually resolve themselves. 00:17:11 - How we can identify a bubble. 00:31:37 - Four tools policymakers can use to handle large debt issues. 00:45:39 - Why hyperinflation occurs at the conclusion of some long-term debt cycles. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Tune into the recent We Study Billionaires' episode covering the Lessons from Billionaire Howard Marks. Learn about the Worldly Wisdom of Charlie Munger. Dalio’s video: How the Economic Machine Works. Ray Dalio’s books: Big Debt Crises & The Changing World Order. Check out William Green’s conversation with Ray Dalio here. Check out Preston and Stig’s overview of Big Debt Crises here. Follow Clay on Twitter and Instagram. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Fundrise 7-Eleven The Bitcoin Way Onramp Public Vanta ReMarkable Connect Invest SimpleMining Miro Shopify Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:03.0	Hey everyone, welcome to the Investors Podcast.
0:06.0	I'm your host, Clay Fink, and boy, M.I. as excited as ever to bring you today's episode
0:11.6	talking about Ray Dalio's thesis on the long-term debt cycle.
0:16.4	Today's episode dives into Ray Dalio's book, Big Deck, Crisis Part One, which gives an
0:21.2	overview of the archetypal Big Deck cycle.
0:24.4	For those who may not be aware of Ray Dalio, he is the founder of Bridgewater Associates,
0:29.6	which is the largest hedge fund in the world.
0:32.4	TIP actually had the honor of featuring Ray on our show on January 1st of 2022 to chat
0:38.8	about his most recent book, Principles for Dealing with the Changing World Order.
0:43.8	Ray's personal net worth is around $20 billion according to Forbes, and because of his
0:49.1	knowledge of cycles and investing, he was actually able to sidestep the great financial
0:54.6	crisis.
0:55.8	While most investment managers were down big at the time, Dalio's fund was up 8.7% after
1:01.4	fees in 2008.
1:03.2	Ray Dalio put simply is an incredible thinker, in a very contrarian investor.
1:08.9	He is extraordinarily good at putting his feelings in emotions aside, in investing in a way
1:13.8	that is rational, despite what the crowd or what other investors are doing.
1:18.8	All of his books have had a tremendous impact on how we hear at TIP think and invest,
1:24.5	as well as how we operate as a company.
1:27.2	Dalio's book Big Deck Crisis is categorized into three parts.
1:31.7	The first part explains the big picture of how our economy works, and how the archetypal
	...

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