This is the first of a three part series on my reaction to Ray Dalio's Principles for Dealing with the Changing World Order. I overview Ray's thesis to why countries rise and fall in a cyclical fashion, and what lessons he learned from trading in previous eras of currency devaluation. I also explain why I believe Dalio overrates the role of income inequality in the life cycle of global empires.

This video is the third part of the Iceberg of Economics series where I break down concepts in the world of economics. Level three is heavy on central planning policies such as socialism, communism, and rent control.

Chapters:

0:00 Introduction

5:00 Dalio's Experience Trading Currency Devaluations

8:00 Default

13:00 Income Inequality

19:00 The Cycle of Changing World Order

Citations:

Dalio's Original Video: https://www.youtube.com/watch?v=xguam0TKMw8&t=1122s

Rogoff and Reinhart paper on debt/GDP: https://www.nber.org/system/files/working_papers/w15639/w15639.pdf

Jake Tran Reaction: https://www.youtube.com/watch?v=3Fe3HdJ3uMc&t=652s

Compensation Theory: https://www.youtube.com/watch?v=DNq0hjjtnPY

Pareto Principle: https://www.youtube.com/watch?v=Jg-LPZEtMGU&t=15s

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