Thursday, January 6, 2022

Changing World Order

 Ray Dalio’s book “Principles for the Changing World Order” did a great job relaying the necessary context or empires. Ray Dalio give us examples of Empires that established capital markets; the Dutch empire. The Dutch were the first to have Capital markets. This allowed them to become prosperous. 

The United States is a world power and has been for the last 200 hundred years. Ray Dalio’s stats show that the United States is on the decline compared to the rising power or China. China has four times the amount of the population of United States, and has increased their GDP/living standards exponentially. 

History has shown that when an empire is challenged by another rising empire it can lead to a war. Dalio, one of the most successful hedge fund mangers ever believes it's a 35% chance that the United States enters a war. Political context within the empire can add to a empire’s devise (Which I doubt will happen to USA). Dalio sights that political differences are greater than ever. Dalio points out that the next war will be over technology and can be more deadly than ever due to the technilofical advances. 

Dalio goes in depth to how China is different from the United States. China embodies a top down approach. Meaning leaders can decide what the general populist can watch, games children play and civilian ideologies. Contrary to China; the American dream allows for the citizens to think freely and individualistically. Unfornately, it isn't working very well for us economically. 

The Billonaire hedge fund manager or Bridgewater recommends that people have a well balanced portfolio to weather financial storms that awaits us. 

Since, I've read Ray Dalio's master piece the Changing World Order its become apparent that productivity is everything and that the country is in debt. We each must do are part to produce and pay off our debts. The US has a advantage being the Worlds currency. If the US loses that advantage it would be a shift that has'nt happen in 250 years. 

Thank you, Stay Healthy!