Summary of the Book Principles for Dealing with The Changing World Order by Ray Dalio

In this post I’m going to give you a Summary of the Book Principles for Dealing with The Changing World Order by Ray Dalio. I summarized the video made with the book as well (click here to watch) but the book was well worth reading.

Ray Dalio is the creator of Bridgewater Associates, the largest hedge fund in the world in 2022.  He writes that this book was inspired by his need to understand world events from the point of view of investing billions of dollars.  There were changes happening in the world that he did not understand so he looked back over history to see if the events happening today occurred before in the past.  What he discovered was that they had, and so he wrote his discoveries in this book.

What he discovered was that there was a pattern of countries rising and falling in dominance and he did an extensive review of the Dutch, British, United States and Chinese nations.  His conclusion is that the United States is not falling in power and China is rising in power.

He says there may be a peaceful transition or a not so peaceful transition in power.  The biggest factor is whether the United States will peacefully acknowledge it’s decline or have a war that destroys humanity instead.

So the book is basically a warning to the world that a war to extinction could happen if we don’t thoroughly understand each other.