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Ray Dalio’s changing world order
Recognizing past patterns to help predict the future of empires
It’s no wonder that as disruptions to life as we know occur on a global scale, people are experiencing high levels of stress and anxiety. While you may want to turn off the news and cover your eyes, the truth is there’s power in being able to recognize the underlying patterns and anticipate what’s coming so that you can prepare and respond.
Will you hide from what’s happening in the world – or will you take control and become the architect of your life, no matter the circumstances? In this episode of the Tony Robbins Podcast, you’ll hear from renowned investor Ray Dalio, who shares what we can do on a personal level, as a collective and as business owners to navigate our changing world order.
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Who is Ray Dalio?
Ray Dalio is a successful businessman, investor and hedge fund manager. He is the founder and co-chairman of Bridgewater Associates, the world’s largest hedge fund, as well as a #1 New York Times bestselling author. Ray conducts his business and lives his life based on key principles and has written several books on the subject, including Principles for Success and Principles for Navigating Big Debt Crises.
His book Principles for Dealing with the Changing World Order points out why nations rise and fall and shares information you need to recognize the times we are living through are part of a larger cycle that has taken place many times before. Similar to the patterns that all human beings follow and the deep needs we all have, world events follow a system.
What is Ray Dalio’s changing world order?
Human beings have stages of development: infant, toddler, teenager, adult, senior. Each stage has certain strengths and weaknesses. The phases of business are similar. Most importantly, countries and empires also go through these cycles.
The cycle is this: There is a war, and the dominant power wins. Then there is a period of peace, prosperity and rebuilding. But new powers always rise during this period – and inevitably they will challenge the existing power. This is what Ray Dalio calls the changing world order.
What leads to a changing world order – and how can we prepare?
There are three big events that lead to a changing world order; one is debt. The basic laws of economics state that you cannot spend more than you earn. And while as Ray says, “Debt is not bad if it gets you the resources to produce more than the cost of that debt,” it can also mean that you must spend less than you earn to repay it. That causes inflation, a key sign of a changing world order.
So what got us here and how can we get out – both as a country and as individuals? The world is changing, but we don’t have to operate from a place of fear. While we can’t control what the government does, we can control our personal habits and we can prepare for economic recession. Listen to the podcast to hear Ray Dalio’s advice on how you can avoid the decline and check out Tony Robbins’ resources for more.
[1:39] Tony on the Power Patterns
[8:51] The Cycle Explained: What’s a New World Order?
[16:00] What’s a populist?
[18:50] The 8 Measures of Power
[23:52] The 3 Big Events that lead to a Changing World Order
[28:40] Why did Donald Trump get elected in 2016?
[31:02] The 5 Types of War
[35:20] Ray’s methodology of studying history
[40:17] The collective experience is all about how we are with each other
[41:29] Education, and disparity in the state of Connecticut
[46:49] They call them revolutions but they’re civil wars
[54:03] Ukraine, Russia, and China
[1:03:02] Inflation: What got us here and what do we do now?
[1:10:00] Taking away buying power to fight inflation = period of stagflation
[1:14:47] The Holy Grail of Investing = diversified uncorrelated assets
[1:18:28] More on China
[1:24:25] Ray’s 3 Tips: How You Can Avoid the Decline
[1:28:47] “Whatever success I’ve had has come more from MEDITATION than any other influence.”- Ray Dalio
[1:33:44] At 72, what’s next for Ray Dalio