Dalio: How the Economic Machine Works in 30 Minutes (and a Cartoon)

A step-by-step guide to finance by one of its current leaders—in an animated video.

(September 25, 2013) — Find the financial markets confusing? Wish someone would explain it in a way you would understand? Ray Dalio, CEO of risk parity pioneers Bridgewater has explained it all in an animated video.

The 30-minute cartoon shows how the system works, detailing its participants and their actions.

“I also constantly hear people argue about what economic policies would be best,” Dalio said in an email to Bridgewater clients. “I believe that if people first explored how the economy works and could agree on that, they would find it easier to make better decisions, and the world will be a better place.”

The video looks at the printing of money and its relationship to inflation, what deleveraging is and how it works, and the impact of the budget deficits on the economy.

It might be a little basic for many of aiCIO’s readers, but we think it is worth a watch—and Dalio would like to hear your feedback.

Click here to access the video on Economicprinciples.org.

Related content: Risk Parity: What Happened? & Is Ray Dalio the Steve Jobs of Investing?

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