How The Economic Machine Works by Ray Dalio
Economics 101 — “How the Economic Machine Works.” Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers t…
Video Rating: 4 / 5
Thomas Sowell has studied and taught economics, intellectual history, and social policy at institutions that include Cornell University, UCLA, and Amherst Co…
Video Rating: 4 / 5
#HumanNature #Economics
*How The Economic Machine Works*
*How The Economy Actually Works*
Here’s a great tutorial about our economy by Ray Dalio, manager of the
world’s largest hedge fund. Given his tremendous track record, he’s
somebody to listen to. This will be some of the best 30 minutes you can
spend.
How The Economic Machine Works by Ray Dalio
How The Economic Machine Works by Ray Dalio
Pretty good summary on how the US economy works, and applies to many others
as well.
This is fascinating: How The Economic Machine Works by Ray Dalio
It seems like he’s presenting a simplified view of the world (for one thing
he says simple like 20 times in the first 2 minutes).
But there are a few nuggets of really interesting truth in here.
The one I like the most, and wish I could go back to my home town and get
enshrined into my highschool education.
It’s the effect of using credit to give short term increases to the RATE of
productivity. I call this Good Credit.
Bad Credit is using credit for things that depreciate in value after
purchase and do not increase overall productivity.
Anyway, really interesting, vastly oversimplified, but worth the 30
minutes.
Interesting video on relationship between productivity and short- and
long-term debt cycles… Yes, a much simplified model, but contains many
interesting insights nonetheless.
This was fun to watch – reminds me of the Macro Economics 101 class I took
several years ago. -Crazy- Tea Party members should give it a watch,
except somehow I think it will go *WOOSH* right over their heads!
PS. I’m given to wonder – couldn’t we just avoid all this craziness and
instability by removing credit from the equation completely?
Very well spent time! #mustsee
A must for anyone who feels like the economy is a mystery to them.
Admittedly simple and obvious, but so well explained
“How The Economic Machine Works” http://buff.ly/1bWPjmD
Ray Dalio is the founder of Bridgewater Associates, a very brilliant mind,
and a clear explainer. In this video he presents a simple model for how the
economy works and how economic cycles arise. The second half explains what
deleveraging is and is very useful to make sense of what is happening to
the economy right now.
Animation Launched!
How the Economic Machine Works. Please enjoy. And spread the word!
+Heather Hartnett +Jeremy Turner +Matt Hauser +Paul Seymour
#Economics #RayDalio #Animation
How The Economic Machine Works (Basically)
31 minutes well spent
Economy is simple. Why people don’t understand it ?
Economic theory, explained via YouTube and cartoon. Now it all makes
sense!
Credit is a hell of a drug.
If the bank holds so much power over the economy, doesn’t that leave a lot
of room for abuse to those who own the banks?
I really feel that it’s *kinda* Keynesian-biased
Best waste of 30 min today.
*How The Economic Machine Works*
Great 30 minute video by +RayDalio on economics.
There are three main forces that drive the economy:
1. Productivity Growth
2. Short Term Debt Cycle
3. Long Term Debt Cycle
Looking at the three gives a good indication of what’s going on.
#economy #economics
Sounds reasonable.
Long but worth watching…
This is how Sowell stays in the 1% club. The interviewer is a Hoover
representative. So Hoover gives Sowell a platform to sell his books, and
speaking engagements, and he spreads their globalist ideology for them.
This is just laughable.
Austrian Economics is such a joke
Sowell takes an extremely stilted view of the onset of the crisis.
People who should never have qualified for mortgages were getting them
because the banks no longer held the mortgages to term. There no longer was
a vulnerable counterpart to the loan who would exercise vigilance. Very
well paid finance wizards engineered a moral hazard which never should have
gone unaddressed.
Instead, fresh mortgages were bundled, sliced and diced, and securitized,
sold off onto a market hungry for returns higher than trivial rates on
commercial paper or government bonds at close to zero. Because house
prices were climbing impressively, almost nobody paid any attention: even a
penniless home buyer could flip his house and make a profit. Nobody had a
controlling interest to exert due diligence before issuing a mortgage, OTOH
many had significant monetary incentives to turn a blind eye and issue
mortgages without regard to any future risk.
It was very much as JK Galbraith had portrayed the stock markets: akin to a
cartoon character who would run off a cliff, continue running, and only
fall once he looked down. Only in this case. he did not look down for a
long time.
Meanwhile, Alan Greenspan took a relaxed attitude, since consumer price
inflation was tame. His major failing IMO is that the preponderance of
growth generated by the economy was going to demographics with a low
marginal rate of consumption, and Greenspan seems to have had no model for
handling asset inflation – or if he did, he declined to act on it. Bernanke
inherited a lousy situation, and we can wish he might have better tackled
the rot – but his room for maneuver was compromised by the sword of
Damocles over his head..
Take it a a warning signal: when the prices of positional goods rise
steeply over a sustained period, we are on the verge of a financial
correction of magnitude.
I do not understand why conservatives are against a central bank. Without a
central bank how is our currency supposed to be regulated, which is a
requirement in the Constitution? Where is capital supposed to come from to
promote business? Is the Fed corrupt, yes. Should it be audited, yes.
Should it be reformed, YES, YES, AND YES! But we need a Central Bank. This
country has for most part always had a Central Bank. We need to adopt
Friedman’s k percent rule, which would restrict the engagements of the Fed.
A Central Bank has no business trying to stimulate an economy, but it does
have the business in stabilizing prices, which is what Benjamin Strong Jr.
and Paul Volker did in the 1920s and 1980s respectively.
+prestigeworldwide141
Peter Robinson
See here ->
http://www.hoover.org/multimedia/uncommon-knowledge/by-guest/9767
Oh gotta love how he didn’t answer the question regarding the economic boom
during the clinton years. He started talking about the surplus which wasn’t
the question. The question was why was the economy still able to boom when
taxes had been raised when you CLAIM that raising taxes by even a small
percentage hinders economic growth
It’s so funny how Thomas Sowell always immediately says it was the
governments fault, not the private sectors lol. I wish more people would
listen to this man.
I have recently read Basic Economics and this is a great interview with its
author!
Basic Economics is an excellent book. Very interesting.
Message from the President of the United States
To the Congress of the United States:
Unhappy events abroad have taught us two simple truths about the liberty of
a democratic people.
The first truth is that the liberty of a democracy is not safe if the
people tolerate the growth of private power to a point where it becomes
stronger than their democratic state itself. That, in its essence, is
fascism – ownership of government by an individual, by a group, or by any
controlling private party.
The second truth is that the liberty of a democracy is not safe, if its
business system does not provide employment and produce and distribute
goods in such a way as to sustain an acceptable standard of living.
Both lessons hit home.
Among us today a concentration of private power without equal in history is
growing.
This concentration is seriously impairing the economic effectiveness of
private enterprise as a way of providing employment for labor and capital
and as a way of assuring a more equitable distribution of income and
earnings among the people of the Nation as a whole.
I. THE GROWING CONCENTRATION OF ECONOMIC POWER
Statistics of the Bureau of Internal Revenue reveal the following amazing
figures for 1935:
Ownership of corporate assets: Of all corporations reporting from every
part of the Nation, one-tenth of 1 percent of them owned 52 percent of the
assets of all of them.
And to clinch the point: Of all corporations reporting, less than 5 percent
of them owned 87 percent of all the assets of all of them.
Income and profits of corporations: Of all the corporations reporting from
every part of the country, one-tenth of 1 percent of them earned 50 percent
of the net income of all of them.
And to clinch the point: Of all the manufacturing corporations reporting,
less than 4 percent of them earned 84 percent of all the net profits of all
of them.
The statistical history of modern times proves that in times of depression
concentration of business speeds up. Bigger business then has larger
opportunity to grow still bigger at the expense of smaller competitors who
are weakened by financial adversity.
The danger of this centralization in a handful of huge corporations is not
reduced or eliminated, as is sometimes urged, by the wide public
distribution of their securities, The mere number of security holders gives
little clue to the size of their individual holdings or to their actual
ability to have a voice in the management. In fact, the concentration of
stock ownership of corporations in the hands of a tiny minority of the
population matches the concentration of corporate assets.
The year 1929 was a banner year for distribution of stock ownership. But in
that year three-tenths of 1 percent of our population received 78 percent
of the dividends reported by individuals. This has roughly the same effect
as if, out of every 300 persons in our population, one person received 79
cents out of every dollar of corporate dividends, while the other 299
persons divided up the other 22 cents between them.
The effect of this concentration is reflected in the distribution of
national income.
A recent study by the National Resources Committee shows that in 1935-36 :
Forty-seven percent of all American families and single individuals living
alone had incomes of less than $1,000 for the year; and at the other end of
the ladder a little less than 1 ½ percent of the Nation’s families
received incomes which in dollars and cents reached the same total as the
incomes of the 47 percent at the bottom. . . .
Franklin D. Roosevelt
The White House
April 29, 1938
I think more Mr. Sowell should also acknowledge that banks get rich off of
creating debt. I am pretty sure the banks didn’t mind lowering their
standards for lending if they themselves knew they would be bailed out and
would get rich off of it.
Basic Economics – Thomas Sowell
“If the average citizen understood even the basics of economics,
politicians would not get away with most of the damage they do.” <-- paraphrased by Dr. Sowell. Thomas Sowell -- Basic Economics
Perhaps this was already noted, but the US doesn’t have the highest GDP per
capita of any major country unless you exclude every other fully developed
major country or you put the bar for “major” somewhere above Canada and
Australia. I’m one minute into this video and already scratching my head;
Americans have a lot to be proud of but highest GDP per capita is such a
strech. In this context “major” country should mean something like:
http://en.wikipedia.org/wiki/G-20_major_economies
Surely the two gentlemen in the video are geniuses but I thought I’d
understand this at least into the third minute.
Too many people do not understand Basic Economics – Thomas Sowell gives
some basics in this interview session
Up until the 30’s we experienced an economic recession every 10-15 years.
After initiating Glass-Steagall and other antitrust laws we went nearly 50
years without any major economic downturn. Then we began to deregulate and
suddenly issues started popping up again. I’m sorry, but his economic
ideology does not line up with economic history.
Questions to consider:
1. What is the true nature of a business?
2, When did a business come about? When was the first business?
2. When did businesses began “competing” with one another?
3. Is competition good?
4. What is competition exactly?
5. Is everything about true nature, meaning things change shape and come
about?
Wednesday Morning #Economics
Thomas Sowell explains healthcare.
http://youtu.be/bOMksnSaAJ4?t=12m52s
I have read his book and have concluded, he truly is fantastic. However, i
do believe he’s wrong about healthcare.
I am from England and my parent work in the NHS and it works MUCH better
than that of america. In short, a ‘free’ healthcare has worked much better
than a privatised one.
The reason being, although america’s health care is primarily privatised
there is not enough competition in order to force it to give you the best
service.
What is interesting about government is that the Federal Reserve was
created in Jekyll Island off the coast of the Carolinas. The famous book
written by Griffith called “Creatures of Jekyll Island,” explains the
process of the creation of the Federal Reserve. I personally feel that the
Fed needs to be reformed not disbanded. The reason why I feel that it needs
to be reformed is that it shouldn’t be able to create dollars out of thin
air. Right now the financial situation that the US is in is that we are a
systemic crisis that is growing everyday at a huge pace. What happens when
a nation spends money and prints money in a rate that is expanding in a
fast pace-manner causes hyperinflation. When hyperinflation happens it
causes the dollar value to drop and the goods to rise. The housing and
market crises of 2007-2009 was started because of the fact that there were
loans that were problematic because they allowed people to gain loans
without having assets, income, and jobs. These loans are called Adjusted
Rate Mortgages or ARM’s. The investment banks bundled these mortgages in
Structured Investment Vehicles called SIV’s and also in Mortgaged Backed
Securities or MBS. By having people fail in their mortgages caused a
systemic crises in the mortgage market. Therefore bringing down the housing
market causing a systemic crisis along both the housing and the market.
Each of the government entities such as Fannie Mae and Freddie Mac failed
also. When the government changes the rules by doing away with the
Glass-Stegall Act by enacting the Graham-Leahy-Bliley Act caused the
banking system to be changed to investment banks. This led to the problems
of the housing markets and the financial markets of 2007-2009. Never trust
a government to do what the private sector can do. The famous
Transcendentalist, Henry David Thoreau, had it right when he said, “A
government that governs least is best.”
Sowell the Joke he clearly stayed he has not look at the Clinton’s
expansion with the marginal taxable rates been increase he only sells the
argument on the tax reduction side with the connection of the performance
of the good economy
Thomas Sowell Basic Economics http://youtu.be/bOMksnSaAJ4 #CEO #CXO
#entrepreneur #TCOT #gov #politics #conservative
In hindsight; history will prove that the boom economy during the Clinton
years was based on a dot.com economy; that economy went bust! When the
dot.com economy went bust the housing economy resurected; and then that
boondoggle went bust. @hitmanhart needs to read Thomas Sowell’s book…
The typical conservative economist assumes that monopoly and the presumed
resultant inefficiency can only occur within a protected national economy,
but by some act of God revealed only to the fertile imagination of the
conservative economist, can never occur under international free trade. The
historical facts, which conservative economists are ignorant of, refute
such an assumption.
Do everyone a favor: google search “Japan price-fixing” and discover the
reality that conservative economists hide from throughout their careers.