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The Mechanics of the Big Cycle
Principles by Ray Dalioยท 2025-06-09 17:59
Economic Cycles - Monetary, domestic, political, and social orders experience cyclical breakdowns and renewals [1] - These cycles involve periods of trauma, credit building, and prosperity, often following wars or crises [2] - A combination of monetary order breakdowns, debt crises (like 2008), and internal political dynamics can lead to serious consequences [3] Historical Context - The second industrial revolution and the panic of 1907 exemplify historical cycles [2] - 1945 marked the beginning of a new monetary order [1] Investment Strategy - Considering these issues simultaneously can provide insights into the current economic standing [4]