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Principles For Dealing With the Changing World Order: Why Nations Succeed and Fail

4.34  ·  Rating details ·  6,059 ratings  ·  594 reviews
From legendary investor Ray Dalio, author of the #1 New York Times bestseller Principles, who has spent half a century studying global economies and markets, Principles for Dealing with the Changing World Order examines history’s most turbulent economic and political periods to reveal why the times ahead will likely be radically different from those we’ve experienced in ou ...more
Hardcover, 576 pages
Published November 30th 2021 by Avid Reader Press / Simon Schuster (first published 2021)
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Yanwen Also, its impact of world order and on the energy world? As far as I can see, the Russia successfully challenged the US-led western world and the rule…moreAlso, its impact of world order and on the energy world? As far as I can see, the Russia successfully challenged the US-led western world and the rules upon which the US has relied on to carry out his behavior the world over from the NATO bombing of former Yugoslavia to Iraq and Afghanistan and many others?(less)
Kal Bridgewater is incorporated in the United States and headquartered in Connecticut (a US state). Ray Dalio is a US citizen. Dalio manages ~$148 Billion…moreBridgewater is incorporated in the United States and headquartered in Connecticut (a US state). Ray Dalio is a US citizen. Dalio manages ~$148 Billion and about $5 billion is from China. A far larger portion of funds come from the United States. If anything he would be biased towards America.

High-performers whether they be Dalio or Musk seem to acknowledge China has competencies we should at least take note of. (less)

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Feb 14, 2021 rated it did not like it  ·  review of another edition
This isn't a good book. Ray Dalio gets basic facts wrong, e.g. the timing of World War I, the impact of the Treaty of Versaille reparations on Germany and Mitteleuropa, the definition of right-wing populism (it isn't about making billionaires wealthier: it is populism!), which US president took us off the gold standard and when. He praises China for its weaknesses (totalitarianism) rather than its strengths. He contradicts himself repeatedly within the same chapter, sometimes even the same page. ...more
Sebastian Gebski
Dec 20, 2021 rated it it was amazing
"Hard times create strong men.
Strong men create good times.
Good times create weak men.
And, weak men create hard times."
-- G. Michael Hopf, "Those Who Remain"

Dalio's recent book is exactly about these four sentences. Or, to be more precise, about the rise and fall cycle of every powerhouse in history. Dalio approaches the topic carefully and dives deep - but focuses primarily on economics and politics (which are important, but there are other important aspects). The book's 'grande finale' is the
May Ling
Jan 15, 2022 rated it really liked it
Summary: This is what people think right now among those that have a lot of influence, so you should read it. While I largely agree with many parts, I do not hold the same framework and these are fundamental differences in how I see the world.

Having read his newsletters for more than a decade, I will never be anything but a huge fan of Dalio. He's brilliant and anyone who believes otherwise has missed the point. The star removal is because we do not agree on a few fundamental things, and I know
Dec 29, 2021 rated it it was ok
To his credit, hedge fund guru and author Ray Dalio studies the past, to better understand the future. He observes that empires, like people and companies, have life cycles that include distinct phases. Fair enough.

Dalio’s analysis of previous fallen empires, such as the Dutch and British, suggests that America is about to cede its global dominance to Communist China, which has caught up to the USA on some measures. Here, he is less convincing.

Granted, North American and European media are full
Dec 11, 2021 rated it it was amazing
Despite I think this book is poorly edited (e.g. repetitions, unnecessary countless references to earlier/later chapters, many disclaimers, verbosity, structure of explaining topics: first in general and then again in more detail) and despite large chunks are not unique (filled with texts out of Ray Dalio's book "Big Debt Crises" and random history books), I gave it a 5* rating.

Much of what most people, including myself, read each day is for collecting information. However, I think the greater
Satwik Kansal
Sep 29, 2020 rated it it was amazing  ·  review of another edition
This book dispels the common narrative that "China copies stuff from the west and is run by an inferior top-down governance system with the communist way of resource allocation". Before reading the chapters in the book, even I used to feel that China is the evil side and USA is the superior side. But the studies about the historical events depicted in the book with a perspective of looking at the recurring patterns (The economic cycles, and the rise and fall of the reserve currency empires) prov ...more
Jan 22, 2022 rated it really liked it
"The empire long divided must unite and long united must divide. Thus it has ever been, and He who lives by the crystal ball is destined to eat ground glass"

Ray Dalio created a powerful model to understand and to predict the future of empires: to understand what was happening and deal with what would be coming you have too study past analogous periods : the rises and declines of empires, their reserve currencies, and their markets. In other words, to develop an understanding of what is happening
CK Yau
Purely from technical and historical perspectives, it’s a great book, particularly I’m not a finance person while his clear explanation of the cause/effect of various fiscal and monetary policies has enlightened me a lot.

However, his take on the US and China rivalry has tarnished my otherwise high regards for this book. Per Ray, all superpowers are going through ups and downs, like cycles and each of them would be overtaken by other newly emerged powers.

As a reader, what I got is his pitching
Alexander Chychykalo
This is really interesting book which gives a grand perspective on a current world order.

Thought #1 - Everything is cyclical - History has taught us that nothing is forever other than evolution, and within evolution there are cycles that are like tides that come in and go out and that are hard to change or fight against.

After the creation of a new set of rules establishes the new world order, there is typically a peaceful and prosperous period. As people get used to this they increasingly bet
Trevor Pownell
Dec 24, 2021 rated it it was amazing
The Changing World Order is a sober, almost surgical, distillation of some of the grand macroeconomic principles that have driven historical empires to their heights and through their collapse. Ray's monstrous research project covers two key topics: 1) a 30,000 ft view on the factors and cycles that led recorded history's leading empires to take the global mantle and subsequently lose it, and 2) a close-up view on current US-China relations, where, he argues, will be the location of next baton p ...more
Tomasz Onyszko
Jan 08, 2022 rated it it was amazing
IMO this is a 'must read' book in the current, but also in a future situations. It is a book building also on concepts Ray Dalio described in his "Principles for Navigating Big Debt Crises" book from financial point of view.

In this book Ray Dalio goes through the analysis of a cycle or power's rise and fall and factors contributing to it. He is sharing his approach to looking at those factors and how those cycles plays out from the financial and political point of view.

Through this lens he gui
Apr 02, 2022 rated it liked it

1. Interesting topic choice with lots of insightful analysis of historical and geopolitical events.

2. I really liked all the graphs and tables. Anyone with scientific/analytical edge will enjoy it.

3. The summary and author's observations seem to be quite objective and accurate. His thinking process is convincing but conclusions will probably not keep many Americans pleased (most negative reviews here point out China glorification and US downplay).


1. The author is certainly a good inves
Alexander Kutovoy
Dec 23, 2021 rated it really liked it
The entire first half of the book is a highly oversimplified history crash course "à l'américaine". Which might have been just fine, shouldn't there be so many factual errors and logical fallacies. If you're American or a really poorly educated European, I guess you may find something new or exciting.

«Unlike European countries, the US has fewer natural barriers, such as mountains and seas, that might have decided it into separate nations; therefore, it is a united homogeneous country.»
*laughs i
Sanford Chee
Nov 30, 2020 marked it as to-read

Salt conference 2021

Yahoo interview Dec 2021

CSIS Ray Dalio & Henry Kissinger

Money, Power & the Collapse of Empires - Lex Friedman

TIP podcast Jan 2, 2022

Masters in Biz interview Jan 8, 2022

YouTube Summary Video

The Changing World
Stefan Bruun
Dec 17, 2021 rated it it was amazing
A great review of history in the context of empires in a financial context.

As expected, Dalio presents a thorough analysis of previous empires rise and fall to destill a framework for understanding where in the cycle we are at any point in time. The concept is comparable to his book on Navigating Debt Cycles in format but with a particular focus in the current US-China relation as well as the route to the current situation through Dutch and British dominance.

The focus on underlying principles a
Mar 02, 2022 rated it it was ok
Pretty crazy to be reading this as Russia invades Ukraine in what I can only imagine to be the last futile power grab of a disillusioned once-great empire.

This book is very popular in the crypto-verse and with investment influencers on Youtube. As I watch people line up outside of banks in both Russia and Ukraine to get their life savings out while they still might be worth something I can see why.

This is one of those singular idea books - the main thrust is delivered in the beginning and is s
Dec 29, 2021 rated it did not like it
Shelves: stopped-reading
The "I did my own research" for economists.

I'm most surprised that anyone read this beyond the prologue.

The author, a popular hedge fund manager, figures his investment success is largely due to his understanding of long-term intra and inter-national trends in debt and politics.
He literally says he's going to look back at historical events, figure the 'cause and effects' and apply them to present day trends. That's when he convinced me to return the book for a refund.

IMO the great irony of th
Jul 15, 2022 rated it really liked it
This book covered a lot of ground, was rather long, and merits a review to match this. I think this review is best covered in a Q&A.

My best caption description of this book would be "A thorough introduction to macro worldomics".
(Worldomics is not a real word)

Why should I read a book that tells me how the world works from a hedge fund manager. Isn't that grandiose and out of their lane?
I think Ray did a great job overall. He makes a good case that techniques from portfolio management can be used
Robert Morris
Jun 23, 2022 rated it did not like it
God I hated this book. I have immense respect for Ray Dalio, the founder of the world's biggest hedge fund. His goal with this book, to turn his immense resources and connections towards mapping the world order and its challenges is noble. It's just a tremendously bad book.

The fundamental problem is laid out on the book's first page, where he name-drops a bunch of famous people he talked to to develop his world view. The list seems superficially diverse, but most of, and the most impressive of,
The main messages are: 1) Countries, especially empires, go through cycles. US is declining in this cycle, and China is inclining. 2) This cycle can be judged by various factors: education, innovation, debt, trade, etc. The author summarized these factors and compared them between past empires Dutch and UK, and now US and China to support his arguments.

I found this book from https://www.youtube.com/watch?v=TISMi... (an interesting interview). I notice that in the comment section there were many
Apr 23, 2022 rated it it was amazing
Incredible book. You'll never see geopolitics in the same way anymore.

It's my first book by Ray Dalio and now I want to read them all. (I can see the author is too proud but doesn't remove from the quality of his writing.)

If you want a systematized way of analyzing countries behaviors, internally and internationally, this is the book.

I'm a fan of Acemoglu & Robinson "Why Nations Fail?" of which the thesis is basically "democracy succeed". This is totally ignored by Dalio. I'd be interested in se
Apr 14, 2022 rated it it was amazing
Every now and then I encounter a book that is colossal in most senses. This is one of them. It takes a broad view of the past 500 years to discern patterns of change in the world order. These patterns are then collated to derive an over-arching theory of change. Just when you get the hang of that, the overall big cycle is then broken down into it's constituent parts and the individual drivers of change are then analysed. Like I said, it's a big work.

The author then goes on to spend the bulk of t
Jonathan Carson
Dense book. Could've used it as a brick to build a house. @MahiroYamakawa was putting some heat on me for how long it's been sitting in my "currently reading." But, I've finished it, and the knowledge endowed to me has updated my mental model of the world by a magnitude unlike many other books I've read.
I have a better understanding of the macro factors that will affect the world, the US, and my finances in the next few decades. With all the crazy shit that happens in the world today, I've lear
Alexej Gerstmaier
Jan 24, 2022 rated it liked it
Macroeconomics still makes little sense to me, need to learn more.

-dalio sees monetary policy in positive way (contra Libertarians)
-Risk mitigation through diversification (contra Spitznagel)
-views on Education not being largely signaling (contra Kaplan)

Would love to see dialectic with these contrarian positions
Dec 18, 2021 rated it liked it
His best (expectedly) take was on financial matters, here he really know what he is talking about. Other then that he oversimplifies / generalizes history to fit his (seemingly preconceived) frame and leaves randomness completely.
Sandy Beatty
Nov 21, 2020 rated it it was amazing
Probably one of the best books I’ve ever read. Learned more from this book than I did from a 4 year economics degree. Should be required reading in university macroeconomics/world history classes.
Eduards Sizovs
Jul 29, 2021 rated it it was amazing
Must-read for people interested in economics and investment.
Book Dragon
Jan 26, 2022 rated it really liked it
Shelves: finance, history
For those who don't know of Ray Dalio: He is a  American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, since 1985, which he founded in 1975 in New York.  For someone who doesn't like or read a lot of help books I have enjoyed Principles and have also read Debt Crisis. This is the third book that Mr. Dalio has published and this book takes us through the history and more precisely economic & po ...more
Tony Duan
Dec 20, 2021 rated it it was amazing
Shelves: favorites
Lots of fascinating ideas in this book. On the whole I think Ray Dalio gets the big picture right; I couldn't help but find myself nodding along throughout.

Everything in history occurs in cycles. The chart of human progress looks like it's monotonically increasing when viewed at a distance. But upon zooming in it's easy to see that there were bumps along the way -- revolutions, wars, pandemics, and insolvencies -- all of which coincided with dramatic shifts in who has power in the world.

No empir
J.R. Batz
Sep 25, 2022 rated it really liked it
Mr. Dalio basically reiterates G. Michael Hopf's now famous adage, "Hard times make strong men, strong men make good times, good times make weak men, weak men make hard times," but through the lens of macro economics.

In the author's own research, he claims to have found 18 social and financial indicators, that when taken to together, seem to correlate with a nation's relative international power. The most important of these indicators being the status of reserve currency for international trade.
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Raymond Dalio (born August 8, 1949) is an American investor, hedge fund manager, and philanthropist. Dalio is the founder of investment firm Bridgewater Associates, one of the world's largest hedge funds. ...more

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“History has shown that we shouldn’t rely on governments to protect us financially. On the contrary, we should expect most governments to abuse their privileged positions as the creators and users of money and credit for the same reasons that you might commit those abuses if you were in their shoes.” 3 likes
“Having a reserve currency is great while it lasts because it gives a country exceptional borrowing and spending power and significant power over who else in the world gets the money and credit needed to buy and sell internationally. However, having a reserve currency typically sows the seeds of a country ceasing to be a reserve currency country. That is because it allows the country to borrow more than it could otherwise afford to borrow, and the creation of lots of money and credit to service the debt debases the value of the currency and causes the loss of its status as a reserve currency. The loss of its reserve currency status is a terrible thing because having a reserve currency is one of the greatest powers a country can have because it gives the country enormous buying power and geopolitical power.” 2 likes
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