Ray Dalio

In order to see that, you can go back in history and get some understanding and also see what's going on now.

So I think it's very, very similar to that.

To me, these all look like watching the same movie over and over again, except people use different technologies and they have different clothes and so on, and there are different people.

But they look so much alike, so I think that this is pretty much looking like the typical process.

Well, China has a number of problems that he has to deal with, which I'll touch on.

However, since I started to go to China, which is 1984, and I went first for curiosity, and then because it was so interesting and I liked the relationship.

Per capita income has increased by 28 times.

Life expectancy has increased by 10 years and so on.

It's done remarkable.

But it now has very significant problems.

I'll quickly take you through four or five of those.

On its debt problems, its debts are all denominated in its own currencies, and among Chinese, mostly speaking, but it needs a giant debt restructuring.

The difficult one is the local governments, because the local governments in China account for more of the economy, and they're broke.

The model... They were...

selling off land and earning money from land sales and borrowing money to produce high production.

And so not only do they have a debt, but they have a model for those that,

local governments that is not an economic model.

In other words, what do you do with businesses that don't work, that don't have a profit?

And related to this is the rationing system that they don't have a profit system.

They've gone really mostly after quantity.