How Countries Go Broke

The Big Cycle

By: Ray Dalio

Narrated by: Jeremy Bobb, Ray Dalio

#1 NEW YORK TIMES BESTSELLER

“Advance copies of Ray Dalio’s new book about how countries go broke have become a hot read in Washington.” —The New York Times

“This book is a gift to humanity….Ray provides a solution to what is the biggest and most certain threat to our prosperity.” —Henry M. Paulson Jr.

“An invaluable resource for policymakers, investors, and citizens.” —Lawrence H. Summers

An urgent warning about the American economy from Ray Dalio, the #1 New York Times bestselling author of Principles.

Do big government debts threaten our collective well-being? Are there limits to debt growth? Can a big, important reserve currency country like the United States really go broke—and what would that look like?

For decades, politicians, policymakers, and investors have debated these questions, but the answers have eluded them. In this groundbreaking book, Ray Dalio, one of the greatest investors of our time who anticipated the 2008 global financial crisis and the 2010–12 European debt crisis, shares for the first time his detailed explanation of what he calls the “Big Debt Cycle.” Understanding this cycle is critical for helping policymakers, investors, and the general public grasp where we are and where we are headed with the debt issue. Dalio’s model points toward surprisingly straightforward solutions for dealing with the debt problems that the US, Europe, Japan, and China face today.

How Countries Go Broke also shows how these debt problems are related to the other forces—political within countries, geopolitical between countries, natural (droughts, floods, and pandemics), and technological (most importantly, AI)—that together are causing what Dalio calls the “Overall Big Cycle” changes in the world order. By reading this book, you will improve your understanding of what’s happening now and what to do about it.

Trumps Playbook?

Ray Dalio puts in context our current $38 trillion in US Federal debt, what needs to be done to soften the societal impact and potential outcomes in regard to changes in the world order. It does seem like the Trump Administration is following at least portions of Dalio’s suggestions and maybe necessarily acting as he suggests leaders will given the backdrop. The time makes the President and not the opposite, so if Dalio is correct we can assume more of the same for the next 5-10 years. So if you want context for the coming financial and geopolitical changes reading this book is a great place to start.

Must-read for investment professionals

Refreshing, insightful, concise. A critical read for investment professionals / money-managers. I like the repetition of key concepts, brief summary of history, and his take on what may happen in the future.

Ray Dalio lends himself to our big debt crisis

Thorough and in depth portrayal of past and current economic conditions. Exhaustively lays all out on the table.

Excellent explanation to today’s global economy

Like other Ray Dalio books, he does an excellent job explaining the current economical situation and comparing to historical timelines and puts his global Macroeconomic perspective in a way that almost anyone can understand. Using events like previous world wars and technological advances shows that today is going through another economical situation.

Highly recommend to anyone that is interested in economics or wants to understand more about global economics and its impact to daily life.

A Must Read to UNDERSTAND principles and their application

The book is a very orderly view of our systems. Despite a dated input, the output is reliable in perspective.