How The Economic Machine Works by Ray Dalio

How The Economic Machine Works by Ray Dalio

Economics 101 — “How the Economic Machine Works.”

Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, “How does the economy really work?” Based on Dalio’s practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

To learn more about Economic Principles visit:

[Also Available In Chinese] 经济这台机器是怎样运行的:

[Also Available In Russian] Как действует экономическая машина. Автор: Рэй Далио (на русском языке):

For more from Ray:
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  1. Happy John on February 13, 2021 at 5:35 am

    I already disagree with his second sentence, haha. The economy is not simple!

    4:05 PM

  2. A Random Indian • 73 years ago on February 13, 2021 at 5:36 am

    😭 The problem with me is, I can’t do a job if it harms or exploit others directly or indirectly. Therefore difficult to find good jobs.

  3. Dr Insitu on February 13, 2021 at 5:37 am

    This is unbelievable SubhanALLAH, How with the interest based central banking we are slowing down human progress. We could have an exponential growth model maybe even would have had a civilization in mars if we followed the Economical Model given to us by God in the Torah + Bible + Quran!

  4. Vivek Singh on February 13, 2021 at 5:38 am

    5:02 why credit is important?
    7:20 three big forces to make up our experience about economy.

  5. Lynette Bruce on February 13, 2021 at 5:40 am


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  6. caleb white on February 13, 2021 at 5:41 am

    Keynesianism this doesn’t show the neoclassical understanding of the economy

  7. Naruto Uzumaki on February 13, 2021 at 5:42 am

    The bashful submarine behaviorally admire because court conventionally hammer outside a synonymous garden. kindly, judicious jeff

  8. HD contents on February 13, 2021 at 5:43 am

    This is crazy 7 years ago this video was out. 2020 we have experienced a lot of things were mentioned in this video which made it more clear to understand.

  9. Tommas on February 13, 2021 at 5:44 am

    Americký sen – drsný animovaný film o americké centrální bance NOVĚ S DABINGEM
    571 484 zhlédnutí•16. 12. 2012

  10. A Person on February 13, 2021 at 5:45 am

    Love you ray

  11. Priyasha Sharma on February 13, 2021 at 5:45 am


  12. Connor Tefft on February 13, 2021 at 5:46 am

    My question is why does the central bank have to be paid back when they are able to print money?

  13. nathanw1010 on February 13, 2021 at 5:46 am

    Debt is cool and all, but have you guys ever rehypothicated?

  14. Drone Ninja on February 13, 2021 at 5:47 am


    Great 👍 job riding AMZN to the downside.

    Stick with me and I’ll make you Stockmarket Rich or Die Trying.

    Ask anyone who’s been following me
    OG Reggie B.

  15. John Thomas on February 13, 2021 at 5:48 am

    Conservative IS the majority. Just a lot of us didn’t pay attention. If Illegals come here they are looking for capitalism If we reach out to them I believe most of them would lean more conservative values SECURE OUR BORDERS so we can help all

  16. Mohit Mahtoliya on February 13, 2021 at 5:49 am


  17. Connor Tefft on February 13, 2021 at 5:54 am

    The problem is who own the central bank

  18. g00glian0 on February 13, 2021 at 5:55 am

    Verge XVG is taking off because Pornhub is now using their coin!

  19. Ishanvi Singhʕ•ᴥ•ʔ on February 13, 2021 at 5:55 am

    thanks so much!
    you really are
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  20. Cappuzitos on February 13, 2021 at 5:57 am


  21. Henry Ifeh on February 13, 2021 at 5:57 am

    This video should be made compulsory for all economics majors.

  22. Mario Jefferson on February 13, 2021 at 6:00 am

    The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich

  23. anth benit on February 13, 2021 at 6:03 am

    start war. repeat

  24. 5 Star Vids on February 13, 2021 at 6:04 am

    Can’t quite see how Ray keeps adding Income keeps in creasing because no one i know hardly ever gets a wage or salary increase this is the time when the rich get richer because of the crash and recovery in the stock market and they are snapping up houses that the covid effected can no longer afford to service andf that will only be getting worse when they start to increase interest rates which i can’t see happening for a very long time and i have seen the Fed do this JUST to appear as though the economy was doing well they are a smoke screen the the USA is full of Donald Trumps all huff and puff look at me look at me at the expense of others.

  25. brownpunk on February 13, 2021 at 6:06 am

    I have spent thousands of dollars on women,cars and booze…the rest I squandered…i love that quote!!!!

  26. Euro3d on February 13, 2021 at 6:07 am

    To understand it correctly, we are now in a depression? Money printing should lead to inflation what’s happing right now and I see high inflation in real estate prices and stock market prices, but no inflation for consumer goods like food. So what would be the way to go to have a "beautiful deleveraging"?

  27. Эльвира Миназеева on February 13, 2021 at 6:08 am

    The caring moon acly burn because popcorn inferiorly compare an a rotten stop. aboard, upset kenya

  28. Madhav Khurana on February 13, 2021 at 6:08 am

    That was an Amazingly Awesome video!
    Love from INDIA.

  29. Long Time No See on February 13, 2021 at 6:12 am

    this is intellectual gold

  30. Prateek Verma on February 13, 2021 at 6:12 am

    Thats a beautiful insight!

  31. Shai Gross on February 13, 2021 at 6:14 am

    Which one of Ray’s books contains most of this content?

  32. Sebastiaan Strik on February 13, 2021 at 6:15 am

    this guy is underrated

  33. Tuan Nguyen on February 13, 2021 at 6:16 am

    I’m indebted to you my friend. Thank you for the knowledge.

  34. Jack Allan on February 13, 2021 at 6:17 am


  35. Vincent Tanudjaya on February 13, 2021 at 6:17 am

    i watched it again, for the 2nd times…

  36. DEVIL on February 13, 2021 at 6:19 am

    when he said "WHYYYY" i felt that

  37. Satori Light on February 13, 2021 at 6:20 am

    Ray Fails to mention that the "federal reserve" is a privately owned company that loans money (credit that they created out of thin air) to governments and the public, WITH interest.

    Hence it’s literally impossible to pay it back.

    the whole system is a scam.

    He knows this.

    So…. Ray Dalios principles.. with the blatant 6666 at the front with a squiggly line…


    Scam is so blatant.

    Research the FED. It’s privately owned, company, creates credit out of thin air (literally prints paper and calls it money) loans it to governments at the people (with interest) and this is the reason for inflation.

    ALso the stock market is a scam, it’s all nonsense.

    The entire system on this planet is a fraudulent joke..

    this "billionaire" including warren B. are not much more than glorified scam artists.

    Sorry to burst your bubble. that is the truth and it may be hard to face…

    grey aliens and mantis would agree (*joke*) aliens dont’ exist… right?

    (except they designed half of the technology you are currently using.. you really think a human being could go from horse and carts to 5g and smart phones in a century? you must be mad?!!!)

  38. Padre Souls on February 13, 2021 at 6:24 am

    why did i understand this so well

  39. Scott Jan on February 13, 2021 at 6:27 am

    百善孝為先 萬惡淫為首 (Honor parents, don’t sexual misconducts)


    Andrew Carnegie(卡耐基企業家) Gospel of wealth: 財布施與法布施給社會.美國星巴克為中國員工保父母醫療險.中東國家回教宗教布施10%, 西方教會布施Tithing10%.巴菲特,比爾蓋茲,馬克札克伯,基金會捐大部分資產給社會.

  40. yue zhang on February 13, 2021 at 6:27 am

    Great video!

  41. Pipil Chocolate on February 13, 2021 at 6:28 am

    I am watching this once a day at break time and now I am crapping myself when I realize that the opposite of a beautiful de-leveraging is what happens. Especially during these times.

  42. Aditya Pai on February 13, 2021 at 6:29 am

    Thank you sir.

  43. Psalm 91 on February 13, 2021 at 6:29 am

    Tell me another fairy story ,daddy! The end is b.s. History shows us that this is hyperinflation and that is where we will end up.

  44. SnYpReCoN on February 13, 2021 at 6:32 am

    It’s never been more true than in these times that knowledge certainly holds so much power. It’s unbelievable how something as complicated as the economy can be translated into the most basic concept for better understanding. This is free info to help you better prepare for that next big correction and for that, thank you, sir!

  45. Pedro Rodriguez on February 13, 2021 at 6:33 am

    So much prospective on future stocks . The key to investing is not assessing how much an industry is going to affect society , or how much it will grow but rather determining the competitive advantage of any given company of that advantage

  46. DieSodomites on February 13, 2021 at 6:33 am

    oh i get it now. basically, the FIAT system is a fraud. It makes the elites even more wealthy. ponzi

  47. Charlie Rivers on February 13, 2021 at 6:34 am

    No ray. Thank you.

  48. TxRaptor on February 13, 2021 at 6:34 am

    Actually, printing money is always destructive in the long term. Period.

  49. Gavyn Dorsey on February 13, 2021 at 6:34 am

    Is there a way to catch deleveraging before it has any negative effects by using AI prediction or would that not work I’m very curious ?