Episode
#251 – Ray Dalio: Money, Power, and the Collapse of Empires
1:40:20
Published: Sat Dec 25 2021
Description
Ray Dalio is an investor, author, and founder of Bridgewater Associates. Please support this podcast by checking out our sponsors: - Athletic Greens: https://athleticgreens.com/lex and use code LEX to get 1 month of fish oil - GiveWell: https://www.givewell.org/ and use code LEX to get donation matched up to $1k - Magic Spoon: https://magicspoon.com/lex and use code LEX to get $5 off - Blinkist: https://blinkist.com/lex and use code LEX to get 25% off premium - MasterClass: https://masterclass.com/lex to get 15% off EPISODE LINKS: Ray's Twitter: https://twitter.com/RayDalio Ray's Instagram: https://www.instagram.com/raydalio Books & resources mentioned: Ray's books: https://amzn.to/3swN5uw Ray's free personality test: https://principlesyou.com/ PODCAST INFO: Podcast website: https://lexfridman.com/podcast Apple Podcasts: https://apple.co/2lwqZIr Spotify: https://spoti.fi/2nEwCF8 RSS: https://lexfridman.com/feed/podcast/ YouTube Full Episodes: https://youtube.com/lexfridman YouTube Clips: https://youtube.com/lexclips SUPPORT & CONNECT: - Check out the sponsors above, it's the best way to support this podcast - Support on Patreon: https://www.patreon.com/lexfridman - Twitter: https://twitter.com/lexfridman - Instagram: https://www.instagram.com/lexfridman - LinkedIn: https://www.linkedin.com/in/lexfridman - Facebook: https://www.facebook.com/lexfridman - Medium: https://medium.com/@lexfridman OUTLINE: Here's the timestamps for the episode. On some podcast players you should be able to click the timestamp to jump to that time. (00:00) - Introduction (08:14) - Money or power (11:50) - Big Cycle (31:43) - Collapse of the American Empire (40:10) - War (43:18) - Xi Jinping (49:21) - Importance of freedoms (55:24) - Democracy's vulnerability (58:49) - Communism's vulnerability (1:05:50) - Vladimir Putin (1:09:55) - Understanding China (1:17:23) - Henry Kissinger (1:27:44) - Elon Musk and Dogecoin (1:29:41) - How to take notes (1:33:24) - Advice for young people (1:37:30) - Hope for humanity
Chapters
Ray Dalio, legendary investor and author, discusses his new book on the rise and fall of empires throughout history and how it can be applied to understanding the current geopolitical landscape, particularly the US and China.
00:00 - 04:45 (04:45)
Summary
Ray Dalio, legendary investor and author, discusses his new book on the rise and fall of empires throughout history and how it can be applied to understanding the current geopolitical landscape, particularly the US and China. The conversation briefly touches on the importance of nutrition for a productive and healthy day.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
The United States, with 80% of the world's money and gold, was the dominant power when the post-WWII world order was established, with institutions such as the UN, World Bank, and IMF built around it.
04:45 - 15:41 (10:55)
Summary
The United States, with 80% of the world's money and gold, was the dominant power when the post-WWII world order was established, with institutions such as the UN, World Bank, and IMF built around it. While money and power are both important, the establishment of the current world order was largely driven by the USA's economic and military dominance.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
In this episode, financial statistics are explored as they relate to having a world reserve currency, focusing on economic output, military strength, and more.
15:41 - 26:50 (11:09)
Summary
In this episode, financial statistics are explored as they relate to having a world reserve currency, focusing on economic output, military strength, and more. The US dollar is discussed as a prime example of a reserve currency and its impact on borrowing and debt is analyzed.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
This episode discusses the stark differences between the education systems in China and the United States, and how investing in education is crucial for a country's success.
26:50 - 39:44 (12:54)
Summary
This episode discusses the stark differences between the education systems in China and the United States, and how investing in education is crucial for a country's success. The conversation also touches on the potential trajectory for the decline of the American empire based on current education measures.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
The world is experiencing not just traditional and nuclear types of warfare, but also cyber wars, space wars, drone warfare, and more.
39:44 - 49:02 (09:17)
Summary
The world is experiencing not just traditional and nuclear types of warfare, but also cyber wars, space wars, drone warfare, and more. With changing relationships between countries becoming less cooperative, the situation is getting increasingly tense.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
China's central management system is both enabling growth and limiting people's freedom on a fundamental level which can hinder entrepreneurship and innovation.
49:02 - 58:11 (09:08)
Summary
China's central management system is both enabling growth and limiting people's freedom on a fundamental level which can hinder entrepreneurship and innovation. This control is seen in various aspects of life such as video games and shows the government's effort to maintain a level of control over daily life.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
This episode discusses the risks of autocratic systems losing touch with reality and lacking flexibility, and highlights the effectiveness of free markets in allocating resources and promoting new ideas.
58:12 - 1:05:40 (07:28)
Summary
This episode discusses the risks of autocratic systems losing touch with reality and lacking flexibility, and highlights the effectiveness of free markets in allocating resources and promoting new ideas. It also touches on the role of populism in response to dissatisfaction with the system.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
The podcast discusses Putin's strengths and weaknesses as a leader on the world stage, particularly in relation to his control over Russia's military despite its limited economic power, and relates it to the cycles of empires throughout history.
1:05:43 - 1:11:17 (05:34)
Summary
The podcast discusses Putin's strengths and weaknesses as a leader on the world stage, particularly in relation to his control over Russia's military despite its limited economic power, and relates it to the cycles of empires throughout history. It also highlights the benefits of growing up in a diverse society like the United States.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
Understanding the culture of a nation is crucial in connecting with people and establishing peaceful international relations.
1:11:17 - 1:20:13 (08:55)
Summary
Understanding the culture of a nation is crucial in connecting with people and establishing peaceful international relations. It's impossible to fully comprehend a society without knowing its language, literature, and values.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
With the amount of money in gold that is not used for jewelry or central bank reserves being around $5 trillion, Bitcoin and gold portfolios are currently worth about 20% of the value of gold.
1:20:13 - 1:29:50 (09:36)
Summary
With the amount of money in gold that is not used for jewelry or central bank reserves being around $5 trillion, Bitcoin and gold portfolios are currently worth about 20% of the value of gold. With the depreciation of fiat money, there will be a competition of monies and Bitcoin could potentially reach high numbers.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
In this episode, Ray Dalio talks about the importance of understanding and learning from one's mistakes, embracing weaknesses, and building principles.
1:29:50 - 1:38:45 (08:54)
Summary
In this episode, Ray Dalio talks about the importance of understanding and learning from one's mistakes, embracing weaknesses, and building principles. By approaching life's decisions in a principled way, it becomes much easier to make decisions and navigate through life's confusion.
Episode#251 – Ray Dalio: Money, Power, and the Collapse of Empires
PodcastLex Fridman Podcast
Ray Dalio discusses the possibility of humanity becoming a multi-planetary species, which would allow for the continuation of innovation and expansion beyond Earth.
1:38:45 - 1:39:56 (01:11)
Summary
Ray Dalio discusses the possibility of humanity becoming a multi-planetary species, which would allow for the continuation of innovation and expansion beyond Earth.