Ray Dalio Davos Transcript

My friends at Santangels have a transcript of Bloomberg's roundtable with Ray Dalio at Davos. Some key quotes below,

"the most fundamental laws of economics is you can’t have debt rise faster than income. You can’t have income rise faster than productivity and the long term growth will be dependent on productivity. And we have these cycles around productivity growth because of debt cycles…

Productivity is going to be the question. There are clear benchmarks of productivity. I won’t go on, but we have a list of those things that correlate with 90 percent correlation with the outcome of the growth rate the next ten years... Productivity, because the debt cycle will no longer be the main driver...

I think in China they are in the other side of the cycle. The other side of the cycle is that debt is rising too fast relative to income and that is something that is the opposite side of the cycle and they will have to deal with it."

If you haven't read Ray Dalio's very good How The Economic Machine Works take a read here and the equally solid An In-Depth Look at Deleveragings here.