Founder, CIO Mentor and Member of the Board of Bridgewater Associates Ray Dalio noted that the global economy cannot spend more money than it can gain without working on establishing more debts, adding that when governments do so, they save debts that can be sold to investors, and if we are not able to pay for the high interest rates, there will be other problems, and we cannot increase living standards and the quality of life unless there are better producers. In a panel discussion on the first day of Future Investment Initiative (FII), currently being held in Riyadh, Dalio referred to basic matters that have to be addressed to face them: the volume of money, debts, and domestic and international conflicts, stressing the importance of having systematic changes to realize peace, stability, integrity and justice. He also noted that if we invested in productivity and provided opportunities, mainly in higher education fields, we could see academia interested in the productivity industry and raising children to receive good education and benefit from resources in the future by being raised up in a proper environment. The session focused on the fact that the global order is witnessing deep changes, where no empire, government or economic system lasts forever, especially that the greatest societies in history witnessed similar cycles of peace and prosperity before collapse after periods of recession, revolution and war. The session said that there are three dynamics affecting the emergence of a new global order: first, long-term debts and the capital market cycle; second, order and internal turmoil, such as change in cultural norms and political disputes; and third, the external order and chaos, such as establishing new technological and economic centers fed by regional units; energy, resources, and supply chains; COVID-19 and new epidemics; wars; and above all close threats of catastrophic environmental destruction. The session also tried to answer questions about what can be expected from the new global order, Can governments and businesses mitigate internal and external discords to minimize the risk of globalized societal collapse? Can a New Global Order bring forth an economic system that improves productivity, health, and living standards without worsening systemic inequities and instabilities?
