Ray Dalio On How The Economic Machine Works (VIDEO)

Are numbers and figures a mystery to you? Or do you wish you had been a little bit more attentive in Economics 101?

Then take a look at "How The Economic Machine Works," an introduction to the economic system by Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates.

In the 30-minute clip, Dalio introduces viewers to the nuts and bolts of the world economy and the economic template he adheres to.

"The economy works like a simple machine," Dalio begins. "But many people don't understand it -- or they don't agree on how it works. And this has led to a lot of needless economic suffering."

Dalio says that while his template is unconventional, "it has helped me to anticipate and sidestep the global financial crisis. And it has worked well for me for over 30 years."

In the video, the Bridgewater Associates founder stresses three rules of thumb he'd like you to remember:

1) Don't have debt rise faster than income

2) Don't have income rise faster than productivity

3) Do all that you can to raise your productivity

Watch Dalio's explanation in the video above and let us know what you've learned in the comments section.