Most people seem much more eager to put out (convey their thinking and be productive) than to take in (learn). That’s a mistake even if one’s primary goal is to put out, because what one puts out won’t be good unless one takes in as well. #principleoftheday

The basic picture has not changed — if the US doesn’t cut the deficit to 3% of the GDP, and soon, we risk facing an economic heart attack in the next three years. The good news is that these cuts are possible. If we change spending and income (tax returns) by 4% while the economy is still good, the interest rate will go down as a result and we’ll be in a much better situation. And we know this kind of balance is possible because it happened between 1991-1998. My fear is that we will probably not make these needed cuts due to political reasons, and will have even more debt and debt service encroaching on our spending that will ultimately lead to a serious supply-demand problem.

The person responsible for a decision must be able to explain the thinking behind it openly and transparently so that everyone can understand and assess it. In the event of disagreement, an appeal should be made to either the decision maker's boss or an agreed-upon, knowledgeable group of others, generally people more knowledgeable than and senior to the decision maker. #principleoftheday

Put your insecurities away and get on with achieving your goals. Reflect and remind yourself that an accurate criticism is the most valuable feedback you can receive. Imagine how silly and unproductive it would be to respond to your ski instructor as if he were blaming you when he told you that you fell because you didn't shift your weight properly. It's no different if a supervisor points out a flaw in your work process. Fix it and move on. #principleoftheday

What can the former Dutch Empire teach us about the importance of capitalism in driving long-term success? #principles #raydalio #history #capitalism

They're likely to be more concerned with appearances than actually achieving the goal; this can lead to ruin over time. #principleoftheday

Most people are reluctant to take in information that is inconsistent with what they have already concluded. When I ask why, a common answer is: "I want to make up my own mind." These people seem to think that considering opposing views will somehow threaten their ability to decide what they want to do. Nothing could be further from the truth. Taking in others' perspectives in order to consider them in no way reduces your freedom to think independently and make your own decisions. It will just broaden your perspective as you make them. #principleoftheday

Being open-minded is much more important than being bright or smart. No matter how much they know, closed-minded people will waste your time. If you must deal with them, recognize that there can be no helping them until they open their minds. #principleoftheday

What happens when a country mismanages its debt? In 1990, Japanese policymakers decided to deal with its debt obligations by printing a lot of money to buy bonds. They further devalued the currency by giving bondholders significantly lower interest rates than in the US. As a result, Japanese bonds lost 45% relative to US bonds and 60% relative to gold over the next few years. That had a real impact on the average Japanese worker, who lost a significant amount of buying power — and those impacts are still felt today. My new book, How Countries Go Broke: The Big Cycle, breaks it all down for you. #raydalio #principles #politics #economics

Most people make bad decisions because they are so certain that they're right that they don't allow themselves to see the better alternatives that exist. Radically open-minded people know that coming up with the right questions and asking other smart people what they think is as important as having all the answers. They understand that you can't make a great decision without swimming for a while in a state of "not knowing." That is because what exists within the area of "not knowing" is so much greater and more exciting than anything any one of us knows. #principleoftheday