Over long periods of time, debts tend to rise faster than incomes, creating the long-term debt cycle.
Even as people become more indebted, lenders freely extend credit because during economic booms, incomes rise, asset values soar, and the stock market thrives. People borrow more to buy financial assets, pushing prices higher and creating a bubble.
So long as incomes keep rising, the debt burden stays manageable. But this cannot continue forever. Over decades, debt burdens slowly accumulate until debt repayments grow faster than incomes. This forces people to cut back on spending, causing incomes to fall and borrowing to dry up—eventually reversing the entire cycle.
#RayDalio #Economy #LongTermDebtCycle #Finance
Often celebrated as one of the most elegant relationships in mathematics, Euler’s formula profoundly connects exponential growth with periodic waves. This visualization moves beyond abstract symbols to show exactly how that connection works geometrically. By tracing a point’s continuous journey around a unit circle within the complex number space, we see that its real-world horizontal component is perfectly captured by a cosine wave, while its purely imaginary vertical component manifests as a sine wave. This dynamic animation visually proves that what appears to be exponential growth in the complex plane is fundamentally a description of graceful circular motion, revealing the deep unity underlying seemingly #manim #calculus