principles dealing with changing world order

He believes any attempt by the United States to control or change China will only backfire: While most Americans focus on particular events, especially those that are happening now, most Chinese leaders view current events in the context of larger, more evolutionary patterns.” While the prospect of a revolution or a war that will overturn the US system is unimaginable to most Americans, both seem inevitable to the Chinese because they have seen those things happen again and again and have studied the patterns that inevitably precede them. “300 years seems like a very long time ago to Americans, but for the Chinese, it isn’t long at all. He writes that Americans misunderstand the Chinese and their own place in history.: Dalio is most concerned about the end of the American Empire and the beginning of another Chinese Empire, a transition he believes could lead to war. The common reserve currency, just like the world’s common language, tends to stick around after an empire has begun its decline because the habit of usage lasts longer than the strengths that made it so commonly used.” And you can see how for an extended period most of these factors stayed strong together and then declined in a similar order. “Rising education leads to increased innovation and technology, which leads to an increased share of world trade and military strength, stronger economic output, the building of the world’s leading financial center, and, with a lag, the establishment of the currency as a reserve currency.

He writes that each followed almost the exact same path: He examined four empires: the Dutch, British, American and Chinese. Dalio has managed to identify metrics from that history that can be applied to understand today. There are few tomes that coherently map such broad economic histories as well as Mr. The book is a provocative read for those of us questioning where in the arc of history the American Empire resides and what may happen to the economy next.

Principles dealing with changing world order