Principles for Dealing with the Changing World Order
Why Nations Succeed and Fail
NEW YORK TIMES BESTSELLER
“A provocative read...There are few tomes that coherently map such broad economic histories as well as Mr. Dalio’s. Perhaps more unusually, Mr. Dalio has managed to identify metrics from that history that can be applied to understand today.” —Andrew Ross Sorkin, The New York Times
From legendary investor Ray Dalio, author of the #1 New York Times bestseller Principles, who has spent half a century studying global economies and markets, Principles for Dealing with the Changing World Order examines history’s most turbulent economic and political periods to reveal why the times ahead will likely be radically different from those we’ve experienced in our lifetimes—and to offer practical advice on how to navigate them well.
A few years ago, Ray Dalio noticed a confluence of political and economic conditions he hadn’t encountered before. They included huge debts and zero or near-zero interest rates that led to massive printing of money in the world’s three major reserve currencies; big political and social conflicts within countries, especially the US, due to the largest wealth, political, and values disparities in more than 100 years; and the rising of a world power (China) to challenge the existing world power (US) and the existing world order. The last time that this confluence occurred was between 1930 and 1945. This realization sent Dalio on a search for the repeating patterns and cause/effect relationships underlying all major changes in wealth and power over the last 500 years.
In this remarkable and timely addition to his Principles series, Dalio brings readers along for his study of the major empires—including the Dutch, the British, and the American—putting into perspective the “Big Cycle” that has driven the successes and failures of all the world’s major countries throughout history. He reveals the timeless and universal forces behind these shifts and uses them to look into the future, offering practical principles for positioning oneself for what’s ahead.
APPLE BOOKS REVIEW
Whether in the stock market or in life, the only real constant is change—but those changes aren’t random. Financial superstar Ray Dalio is an expert at finding the patterns in history’s constant changes, and he does it again in this intriguing business guide. The hedge-fund hero and author of Principles chronicles the rises and falls of the largest economic and cultural powers in the past five centuries (including Great Britain, China, and the United States), breaking down the eight determining factors behind each one’s wealth and influence. Dalio dives deep into the shared economic and sociopolitical trends that he spots within each power's “big cycle,” basing his findings on data-heavy reports, analysis, and his own historical insights from decades of market-scrutinizing perspective. If you’d like to develop your own eagle eye when it comes to financial trends, Principles for Dealing with the Changing World Order is the perfect place to start.
Rise and Fall of Empires - Patterns, Economics, & War
A great book for understanding the economics of USA and rest of the world in comparison. Dalio did a compelling job in elucidating the economics, wars, conflicts, and benefits of innovations in the last 500 years. A predominant work emphasizes on how China is en route to becoming the next super power and how the current situations in USA show the decline in its power. Several indicators and heuristics for past/future empires mentioned in this work are intuitive. Time will certainly tell about some of the predictions. However, I’d definitely recommend the book even for a casual reader. Oddly much of the philosophy applies to personal lives and families as well. But that’s my opinion 🙃
An Interesting Ultra-Macro Perspective
Ray Dalio identifies some interesting patterns and lays out his projections regarding the great power dynamics between the United States and China. He draws loose parallels to the decline of past reserve currencies and the superpowers whom administered them - namely the Spanish, Dutch, and British Empires. He also draws comparisons between these powers and the powers that rose to succeed them. The analysis is crude and approaches being too general in scope to draw any meaningful conclusions, but the instinctual side of my brain finds truth in Ray’s areas of focus on what predicts the rise and fall of great powers. This is definitely worth a read as long as the reader comes in with a critical mindset.