How Countries Go Broke: The Big Cycle (Principles)

How Countries Go Broke is Ray Dalio’s deep dive into one of the most important forces shaping history—the Big Debt Cycle. Drawing on more than 35 case studies of government debt crises, Dalio shows how nations move from prosperity into decline when borrowing, spending, and money printing reach unsustainable levels.

He breaks the cycle down into stages—early growth fueled by credit, mid-cycle expansion with rising debt, late-cycle excess marked by central bank intervention, and finally, the tipping point when confidence in money and debt collapses.

Dalio connects the debt cycle to the Overall Big Cycle, where politics, geopolitics, natural events, and technological shifts—like artificial intelligence—intertwine with financial dynamics. Using both history and data, he maps out how the U.S., China, Japan, and other nations fit into these repeating patterns.

The book also proposes practical steps forward, such as sustained deficit reduction, disciplined fiscal policy, and diversified investments to protect against instability. Dalio warns that the U.S. is entering the late stage of the Big Debt Cycle, where unchecked borrowing erodes living standards and undermines the middle class.

Author: Dalio, Ray

Binding: hardcover

Number Of Pages: 400

Release Date: 03-06-2025

Details: #1 NEW YORK TIMES BESTSELLER

EAN: 9781501124068

Package Dimensions: 9.3 x 6.4 x 1.1 inches

Languages: English