Ray Dalio

So that's how they fight wars. That sounds like a smart way to fight wars. Also, international relations, there's what's called the tribute system. And the tribute system was your power determines where you are in your hierarchy. If you have more power, you have more hierarchy. You're higher in the hierarchy. It's like Confucian. And everybody should know what each other's power is.

And the lesser power should give tribute to the greater power. This is internationally. And the greater power should respect that and treat and they should work and have harmony together rather than to have the conflict. Because it's all about getting what you want. Harmony and prosperity is what you want. And fighting that destroys things is not what you want.

And the lesser power should give tribute to the greater power. This is internationally. And the greater power should respect that and treat and they should work and have harmony together rather than to have the conflict. Because it's all about getting what you want. Harmony and prosperity is what you want. And fighting that destroys things is not what you want.

Whereas, yeah, the man who was vice president, great historian of China, a man by the name of Wang Shishan described it to me that there's the Mediterranean approach.

Whereas, yeah, the man who was vice president, great historian of China, a man by the name of Wang Shishan described it to me that there's the Mediterranean approach.

Yeah. And the Mediterranean approach, which is a very different approach. really began out of that there were families and there's no borders. And the way it worked is there were no limitations. In fact, we didn't have countries with borders and ideas that you don't cross borders until the Peace of Westphalia in the mid-17th century. I think it was like 1650-something.

Yeah. And the Mediterranean approach, which is a very different approach. really began out of that there were families and there's no borders. And the way it worked is there were no limitations. In fact, we didn't have countries with borders and ideas that you don't cross borders until the Peace of Westphalia in the mid-17th century. I think it was like 1650-something.

They had 30 years of war, and everybody would fight. So they were fighting experts, and that's what the norm was. And then after 30 years of war, they decided, okay, let's draw a boundary around it and try to see what goes on. And then there's your business, and that's how it came about. And that's, by the way, in history—

They had 30 years of war, and everybody would fight. So they were fighting experts, and that's what the norm was. And then after 30 years of war, they decided, okay, let's draw a boundary around it and try to see what goes on. And then there's your business, and that's how it came about. And that's, by the way, in history—

One of the reasons that the Chinese and Japanese lost what they called their hundred years of humiliation when the foreign powers came in in late 1830s, and they had a fight, the opium wars and so on, the Western powers were strong at fighting because they were practiced at it. And then there was the hundred years of humiliation, they call it in China, where the foreign powers came in.

One of the reasons that the Chinese and Japanese lost what they called their hundred years of humiliation when the foreign powers came in in late 1830s, and they had a fight, the opium wars and so on, the Western powers were strong at fighting because they were practiced at it. And then there was the hundred years of humiliation, they call it in China, where the foreign powers came in.

So anyway, I'm giving you too much history, but I'm saying that There's a whole different attitude about how to play that game. And so that's what I think you're going to see. You know, that's when we come back now to the chips war and you took a look at today's news, you know, there we are.

So anyway, I'm giving you too much history, but I'm saying that There's a whole different attitude about how to play that game. And so that's what I think you're going to see. You know, that's when we come back now to the chips war and you took a look at today's news, you know, there we are.

We can do this. And if we don't do this, the power of the United States is going to be greatly diminished. So it's domestic, it's international. So I appreciate, yeah, I appreciate you, Dave, that we can have this kind of conversation, just have people behave logically. Maybe that's too much to ask.

We can do this. And if we don't do this, the power of the United States is going to be greatly diminished. So it's domestic, it's international. So I appreciate, yeah, I appreciate you, Dave, that we can have this kind of conversation, just have people behave logically. Maybe that's too much to ask.

You know your stuff. You're great. And this is really invaluable. Thank you for doing that for your listeners.

You know your stuff. You're great. And this is really invaluable. Thank you for doing that for your listeners.

We just have to do our best. That's right.

We just have to do our best. That's right.

Thank you, Dave.