Ray Dalio

So by, and the quantity, you know, how do I maximize the quantity of production?

forgetting about the profitability of that.

So when you have that, then you have the dynamic that they're now describing, which is now called involution, which is the fact of overproduction doing harm to the economy.

That's going to require a big restructuring, like these big restructurings go, similar to what they did in the 90s.

Zhu Rongji was the

vice premier and premier at the time who did this.

But the way they go is you have to pick which companies are going to stay, and which go on the auction block, and which get restructured, and so on.

Otherwise, they're going to have the problem similar to China.

Because China, excuse me, Japan.

Japan had the same thing.

Too much debt, but it was a surplus country, and the debt was in its currency, and they had locals.

But you have to do that restructuring.

So there's that.

And then there's a number of things that we won't have, but certainly the world markets are the change.

China produces manufactured goods, is dominant.

32% of the world's manufactured goods come from China.

That's more than the United States, Japan, and Germany combined.

And now their markets are being closed to them and so on.

So they have to go to the third world.

There are a number of these types of issues having to do with a pension system, an income tax system, and so on, that if they don't deal with well, and they're very difficult to deal with well,