How The Economic Machine Works by Ray Dalio

45 Comments

1. Fake money is bad.

2. Absolutly brilliant!. Perfect drawings to aid understanding.

3. In a Nutshell: credit should only be used for productive means (and maybe buy your house), never for consuming.

4. Can anyone explain me transactions?!!!

5. Keynesian fallacies x 1000

6. This 31 minute video does more for your understanding of the economy than the economic "education" you get in school. Money is created by (central) banks out of thin air and you pay it back plus interest, earned by productive work/smart investing. Let that sink in. To finance your dreams you sell a part of your life. The mystery of banking explained.

7. I was trying to understand this topic and how beautifully you described it.
   That's the best educational that we can get I wish we have more professor like him ♥️
   Thankyou so much sir ♥️

8. This is by far the most briliant video about how economic works. In contains every important aspect in only 30 mins. The video editing is also SUPERB. I have seen this video twice and I will watch it several times more. Great! Thank you for your effort creating this video. It's realy eye opening.

9. gotta love that voice

10. the reason we have poor economics is that people did not create growth using debt rather used it for consumption which is toxic to the group
    the banks did not check well if the debt is for growth or consumption. they failed their job.
    people don't know know how to create growth of contribution.

    the human problem is: https://listenonrepeat.com/?v=PHe0bXAIuk0&s=862&e=868#How_The_Economic_Machine_Works_by_Ray_Dalio
    because creating growth requires thinking.

11. If only the average person would spend this half hour, they would have a much better view of the larger picture that their instincts are giving them anyway. And we'd all be better citizens for it.

12. Time 6:38 We are told that "hard working, inventive people raise their productivity standard faster than those who are complacent, and lazy". We have to quit believing such baloney!
    Please consider the following article by ~~~Scientific American Magazine~~~:
    https://www.scientificamerican.com/article/the-american-economy-is-rigged/

13. why the productivity always grow?

14. What is this i cant understand

15. 19:20 The government’s flawed economic stimulation measures: (Flawed because the government itself is a “captured state”, and therefore undemocratic because it no longer represents the interest of the people. The government, its institutions and its departments which manage the economy is run “captured” by the very bankers and financiers it has bailed out, “the revolving door”.)

    1. Cut Spending: Austerity measure meant poor had less government services available to them. Whilst also increasingly unemployment by cutting down government jobs. Overall this resulted in less stimulation and increased pressure on the government to either borrow money (bonds) or print money. (The government and people cut their spending, whilst the banks and the bankers increased their spending from the taxpayer funded bailout). 

    2. Reduce Debt: It did not offer citizens a debt reduction option for their debts. Instead it used tax payers money to bail out the banks out of their debt, by restructuring their loans. Any remaining surplus was spent on bankers bonuses and used to buy government bonds. In other words increasing the government’s debt, having first been bailed out of debt by the government (tax payer) itself. Thus covertly then transferring its own debt on to the government. The government is faced to sell bonds because of its shortfall in tax revenues because ironically it spent the money bailing out the banks. Consequently the government has to increase taxes on the tax payer to “pay back the banks”, for the bonds sold to them to raise government funds. 

    3. Redistribute Wealth: Didn’t not enforce progressive taxation on the rich in order to redistribute wealth (because wealthy have offshore accounts). Instead to compensate they increased stealth taxes and introduced new ones to make up for decrease in tax revenue. By doing this the government “redistributed” wealth from the poorest to wealthiest. 

    4. Print Money: Instead of distributing it to the citizens through government stimulus programs and increasingly government services and employment, it gave the money directly to the banks it had previously bailed out. The banks used this money to pay themselves huge bonuses and spent on luxury items with the belief that they will be indirectly stimulating the economy because the money would trickle down and stimulate the economy. All this printed money is having the affect of increasing inflation thus making it harder for the poorest to afford simple things. Additionally it is diluting the value of the dollar,especially since it is not linked to “gold standard”. Most of this money is being used by investment banks to buy gold. When the economy has to reset itself and government will go back to the “gold standard” who do you think is going to sell them that gold at an inflated price? Further if the dollar is loosing it’s intrinsics value you can understand why all these bankers are buy up “other currencies” which are more stable, namely stocks of of high performing companies on the S&P500, fine art, luxury properties overseas etc. This is a covert well co-ordinated game being played across multiple borders, with the co-operation of key individuals  who are embedded in our economic and government system  “Spectre”. 

    Everyone of these above measures was used to bankrupt the citizens and increase their level of poverty. Most of this money is then shared by super elite and distributed various departments which run the the deep state “a government within a government”, which is undemocratic and controls the government we elect.

16. 25:45 Basically this segment is where it all went wrong, and is continuing to go wrong for the economy. The government borrowed printed money from the central bank and instead of using it to provide government goods & services (e.g. infrastructure improvement and investment, welfare payments, increase the number of government jobs) to stimulate the economy by DIRECTLY PAYING its citizens through employment, the government instead decided to give this money directly to the investment banks to distribute by providing availability of loans to citizens. 

    Except the banks didn't use this money to provide loans to citizens to spend which would have stimulated the economy. Instead this money was used by themselves without any regulations or monitoring in place. The newly printed money went directly into the coffers of the already wealthy, super rich, elite banking class. The bankers paid themselves huge bonuses, bought chateau's, yachts, helicopters, penthouses etc with this free money with the notion they would be indirectly stimulating the economy by spending it on these luxury items for themselves and believed the money would then trickle down to the people who need it the most, instead of actually providing loans through their banks to citizens as the government intended so citizens could spend to stimulate the economy and increase growth. 

    What we’ve observed over the past decade since the banking & economic crisis of 2008, is that this money didn't trickle down to people who needed it the most because of unavailability and access to bank loans. Other reasons why the money doesn’t trickle down is because the rich can avoid progressive taxes (19:15), which consequently forces the government to increase stealth taxes on the already beleaguered poor, thus increasing poverty, and their inability to pay off their debts or to spend which affects the economy even further (downwards spiral: depression). The economy it seems is structured to enable money to flow upwards and not downwards. The reason for this is simple, the bankers who worked for the banks now run the central banks, key government positions, and regulators. So the rich and powerful become increasingly powerful, whilst the other 99% question their very reason to exist. 

    So how are the poorest going to stimulate the economy through spending, if the printed money is not finding its way to those who need it? Also on top of this how are the poorest people going to stimulate the economy if they have no money to spend because they are being taxed more (stealth taxes imposed because rich are evading progressive taxes), find themselves on lower incomes (because of poor health of economy and thus job availability), with austerity measures imposed on them (government services cut) and unable to borrow money due to unavailability of loans and poor credit because they are unable to get agreements with lenders to restructure their loans, instead they facing repossession and foreclosure?

17. Okay so I'm ready to run the World Bank or Fed. Seriously during this 30min video I've learnt more about economics through visual presentation than learning about economics at college. I've trawled through literally hundreds of documentaries over past 10 years trying to understand the economic crisis and collapse of banks, now i understand the role of all the players. Will their be a video on on what caused the investment banks (Eg Bear Stearns & Lehman Brothers) to collapse, their speculative trading, bubbles and poor risk management.

18. What a piece of bullshit this video is. Better learn some Austrian School of Economics instead!

19. It's ironic how confidently Ray talks about the simplicity of the economy then proceeds to get it ass backwards as he talks about how the Fed and government save us from depressions lol

20. Thanks for sharing. Beautiful explanation and the animated video!
    Wonder if anyone know how this animation is done… using any video making tools?

21. Van Gogh is lazy hahh? Owh no he WAS lazy back then but after he died you feasted on his corpse and made a lot of money.

22. So if the inventive person is hard working while those that didn't get the hand out from dad are lazy, what do you call a banker that loses all the money and goes to the government to look for a bail out?  Did you know that the next crash there will be no bail out and the banks will use the FDIC to get the money? As always the FDIC will hand out the security starting with those having up to $250000 and work themselves down to those having only $2000 if they still have funds left. So as you see it is all by design to stick it to the little people. The rich and the government are in bed together and the only losers are us.

23. What happens to the people puffing out in the video when in the real world? It seems like a poor system that we have, with hunger poverty etc. I would appreciate your views on this idea of a "resource based economy": https://wiki.p2pfoundation.net/Resource-Based_Economy
    Thanks 🙂

24. Please make more

25. How credit and finance really work! Prof Dr Richard Werner, many books, see Princes of the Yen,
    Video: Are banks good or bad?
    Banks do not lend money, no such thing as deposits, fraud in mortgages, banks suck money from the economy.

26. Really. This has been probably the best video I have ever watched. We all should get educated about economy. It's the most important subject for any civilised human society. For some reason poetry and science are given so much priority in our schooling, but not economy. Even though its the oxygen for a healthy civilised society.
    The topic of money has always been a taboo in my school days god knows why.

27. good video. Ray Dalio should read Restoring Power and Democracy back to the People as it explains this debt and speculation cycle more deeply and provides innovative solutions
    https://www.amazon.com/Restoring-Power-Democracy-Back-People/dp/1075544580/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=&sr=

28. What a delightfully selective & biased oversimplification of economics.

29. its easy to be believed these days

30. Don't listen to this crap!!

    For someone to spend on something fist there has to be someone to save, this is a Keynesian school, listen to the real school of economics: it's call Austrian school.

31. The credit is the most venom creature run by Banks in iur century. The only salvation is in blockchain technology and cryptocurrency. And it is coming, unstoppable.

32. This video is complete bullshit. Workforce productivity has increased significantly over the last few decades, yet wages have stagnated.

33. But productivity has been decoupled from wage growth since the end of Breton Woods.(1970) soooo this video is BS?

34. Can someone send this video to Zimbabwe it's president and ministers

35. Moral of this story keep gold diamond and silver

36. This should be renamed Ray’s Recipe for Economic Disaster?

37. We’re seeing consumer spending slowing, car loan defaults up, student loan defaults up, inverted curve…I think we are in a recession already.

38. So, debt based economy is very dangerous and it will eventually and always collapse at some point.

39. I think we need a new economic machine which will run for poor peoble and environment , the present economic machine was invented by those who want to steal poor peoble s money by using interest

40. Great presentation! Which software did u use for it? 🙂

41. Simple and powerful- the best I have come across – Legend Ray rocks

42. I’m confused on how wealth redistribution is deflationary? Any idea?

43. This is great. Have a lot of key take aways

44. so right now where are we in the cycle?

45. Bourgeois propaganda.

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