Dalio’s description of the cycles is historically accurate. The only thing it lacks is a way to resolve the problems and chaos they evoke. As Michael Hudson has chronicled private debt has always destabilized economies, and as Dr. Keen has suggested we need “a modern debt jubilee”. Only problem is, neither has discovered exactly how to prevent destabilization by preventing the continual build up of private debt and the consequent loss of purchasing power.

The ancients recognized this problem and because they were smarter/not as long acculturated to the monetary paradigm for new money creation they had periodic debt jubilees/monetary gifting that greatly eliminated private debt. The problem with this was it was periodic which means it was a mere palliative that enabled Finance to re-dominate for another 70 years when a paradigm/permanent change was what was/is required.

The solution:
1) A 50% Discount/Rebate policy at retail sale so everyone gets $100 worth of groceries for $50, a $60k EV for $30k and a $500k house for $250k thus doubling everyone’s purchasing power yet every merchant gets their full price with the rebate and
2) the result is beneficial price and asset deflation accomplished by more money creation (the heads of the orthodox explode)
3) the effect is universal and continuous because its point of implementation is retail sale which is the single aggregative as in macro-economic/universally participated in and effected by point in the entire economic/productive process.

Thank you non-Nobel prize committee.