Part 6/7:
Reflecting on the historical backdrop, Dalio notes how the long period of low interest rates post-financial crisis led to unsustainable levels of debt. The economic policies that fueled this growth, particularly the fiscal stimulus measures during the COVID-19 pandemic, exacerbated existing tensions in the economy, leading to inflation and a deeper debt crisis. Consequently, this situation is not solely an American issue; it's a global concern that intertwines with geopolitical conflicts.