Ray Dalio Explains Debt Cycles

3-Second Blueprint (English)

1. Credit-fueled spending outpacing goods production causes inflation, prompting central banks to raise interest rates.
2. Because one person's spending is another's income, central bank rate shifts drive 5-to-8-year expansion and recession cycles.
3. Over decades, debt grows faster than income until rising repayments force spending cuts at the long-term debt peak.