Ray Dalio

In other words, right now we have a certain amount of debt, one man's debts or another man's assets.

They have those holding them, expect to have a good return.

And then you have to sell more.

And when you have to sell a lot more, there's a supply demand issue.

And when those two things happen together, it's like plaque in the system.

And then number three,

is the world order.

In other words, how countries deal with each other.

And throughout all history, there are great conflicts, wars.

And then after the war, there's a new order.

The power in the United States, for example, 1945, created a new monetary order, created a new world order.

And that was a multilateral world order that was designed almost to some ways replicate the U.S.

approach to representative democracy.

The creating of the United Nations, multilateral organizations, including, can you imagine, the World Court.

or the World Bank, or the World Trade Organization, or the World Health Organization.

That's all over.

And it was in some ways naive because if you take a vote and there's no enforcement mechanism, of course, that's not going to work in the dominant power.

So that's the third.

So we have changed the world order to a—

world order that was analogous to pre-1945, which is a power rules kind of world order.