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Friday, September 27, 2013

Ray Dalio explains how the economy works

Perhaps a little over-simplified, but an excellent explanation of how the economy works by Ray Dalio.  

Credit is not created out of thin air, as he says, but by those willing to save instead of spend (except for demand deposit accounts, but that's getting into details of how banks create credit apart from saving/investment, and still depends on people being willing to save/not spend).

Nothing in this blog should be considered investment, financial, tax, or legal advice. The opinions, estimates and projections contained herein are subject to change without notice. Information throughout this blog has been obtained from sources believed to be accurate and reliable, but such accuracy cannot be guaranteed.

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