How Countries Go Broke by Ray Dalio - A 300-Word Book Review
The Big Cycle
Rating: 9/10
Pages: 388
Time To Finish: 14 days - 30 pages/day
Where To Purchase: Amazon
What is it about?
Ray Dalio is the founder of Bridgewater Associates, a well-known hedge fund. In this book, he explains the “Big Debt” cycle. Essentially, it is a recurring pattern of debt accumulation in a nation that leads to economic crises, and if mishandled, can lead to financial ruin.
He talks a lot of historic examples, of course outlining the US a lot, but also talking about China, Japan, and other countries. Ray uses plenty of charts to outline his points and even explains how he sees the future based on where things are now.
Long story short… mismanaged monetary polices and excessive borrowing can lead to collapse.
My favourite parts
I really admired how well he explained any point he was talking about. More specifically, any time he would use historical examples. He analyzed what has happened, so he can better plan for what is likely to happen.
It was very helpful when he did a thorough analysis of the US currently, and what could happen in the future.
Who should read it?
This book would be helpful for those who are actively investing and those who are interested in economics and monetary policy.
Additional thoughts
I had to reread pages quite a few times and then ask Grok some questions to understand what Ray was saying. It tested my knowledge in economics and helped me learn a lot.
These kinds of books are great because they expose your weaknesses and help you work on them, too.