Ray Dalio: How the Economic Machine Works

Ray Dalio of Bridgewater Associates narrates this video, which gives a simplified explanation of how an economy really functions when controlled by a central bank, such as the US Fed.  He shows how there are short and long-term cycles which govern credit, debt, inflation and productivity.  Dalio ends the video with some simple rules to help maintain a healthy economic system:

• Ensure debts don’t rise faster than income
• Ensure income doesn’t rise faster than productivity
• Try to keep increasing productivity as much as possible