That for the Graham Cassidy bill . Mike as you know, this is a almostamatic moment that certainly kills the Graham Cassidy bill. The bill could not lose another vote. This means it likely will go down. The amazing thing about this is Republican Leaders again. Themselves out on the slim this limb. I dont how many times they need to put their hands on the stove to know this will not have a happy ending for them. Rand paul, a hard know. Senator Susan Collins likely no. That is enough to kill it. You look at any of the fact thiss about this bill, and was going to be, of all the different versions, this was going to be one of the hardest on end users. It was arguably recording rewarding blue states rewarding red states at the expense of blue states. Since the policy was always problematic and now we see with senator mccain, the politics also problematic. In senator mccains statement saying he did this with no joy, the line that was memorable and will provoke a lot of conversation and the consequence of for where our country is now is he thought something this big needed to be done in a bipartisan way. Here is the key line in his statement. Wereact that republicans again going to try to pass something by themselves is what he hung his hat on. There was another huge issue hole i dont think republicans were going to dig themselves out of. That was the jimmy kimmel factor. In the most personal of terms , heing about his own child said this bill broke a promise to him by republican senators they were going to continue preexisting conditions even for people whose last names are not kimmel and cannot afford the millions it might cost to have these surgeries. Three nights in a row, yes talked about how Senate Republicans have tried to hurt the American People and not been honest about what is in the bill. This might be the first on a latenight comedy show, putting up the screen showing the Telephone Office numbers of on the fence senators. Republicans did not have a good answer. All the fact checks said jimmy kimmel was right. That is a tough thing to overcome. Charlie saying this bill would not necessarily guarantee preexisting conditions would be covered. If so, premiums would be so high no one could inform the. Mike exactly. You might hit your cap and have to pay outofpocket for some children, including someone who , thatme of the treatments it would be unaffordable for anybody who does not have a latenight comedy show. Charlie what does this mean for obamacare . Mike it remains the law of the land. There will continue to be small efforts to fix it. There is no way republicans will be able to say they repealed it. Republicans, whatever they do in the future, they will do it from the back foot as our british friends will say and will have to involve democrats. This is a trend we are going to see. One of the arguments for why President Trump started doing some of the democratic deals with chuck and nancy is because he has to. The map does not work without them. There were a couple more bills where there was the possibility of using reconciliation, the mechanism that will allow you to do with only republican votes. That is running out. The president has no choice but to involve democrats. That is what we will see for anything coming up. Charlie if tax reform is the next order of the day and the president decides to cooperate and negotiate with schumer and pelosi, is there a tax reform bill possible . Mike yes, yes, and yes. The big question is whether it will include democrats. It is possible to do it with only republican votes. Such a treacherous path. The white house is very optimistic about getting some Democratic Senators who are up for reelection in trump states to join with them. That would give them the margin of victory but also allow them to say this was not a republican only bill. You know i have been a bear about the idea that anything substantially was going to happen on tax reform. It is now looking more likely than it was. Willsources on the hill tell you still less than 50 50 but more likely than before. If we have something, the most likely package is threepronged. There will be cuts in corporate rates. There will be cuts for Small Businesses that file as individuals. And third, there will probably be a tax cut for individuals who make 150,000 or less. The president making sure there is a notable, substantial, measurable tax cut for trump voters. And he will do something for corporations. Not as much as he planned from the beginning. What we are down to is a package of pretty cut and dried tax cuts. None of the statistic reform systemic reform that so many economists argue this country needs to be competitive in the new world. No tax reform since the reagan years. There is not a single thing about our economy that has not changed since then except the tax code. Again, washington failing to do its job and failing to take advantage of opportunities in the Global Economy. Charlie the president believes he needs a legislative victory which he has not had except the confirmation of the Supreme Court justice. Mike it is not just the president needing it. As you well know, house going out for reelection in 2018 need something to hang their hat on. They dont have much of a story to tell at this point. If you are a third of the senate up in 2018, every house member up in 2018, they really need this for that reason. Not only the ability to say washington is not completely leadership ofhe republicans at both ends of pennsylvania avenue, but quickly this will have psychological and real effects on the economy. That will help the governing party. That by itself could be a huge help towards the president s reelection. That is why many republicans will tell you they wish they had done infrastructure and tax reform earlier to get the boost for the economy. The economy has had a psychological spring in its step because of what it thinks is coming as far as regulations and tax reform. Now i do tax reform, you have real benefits to the economy. Betterw, no single predictor of who will win the upcoming elections. Charlie the president has not been in washington this week. He has been in new york. Mike living in trump tower in his own bed. Charlie and playing havoc with the traffic as the noises during the general assembly, even more so when the president is here. What is the overall judgment of the president s tough speech to the u. N. General assembly, especially as it has to do with north korea, iran, and venezuela . Mike the president in very harsh terms calling out those three governments as rogue governments, calling them out in terms never used during the obama administration. Youre right about calling it a tough speech. Conservatives like the speech. Israel like the speech. There were some trumpian touches the speech that caused a lot of people to look askance. There were pictures of general john kelly with his head in his hands with the photographers trying to match the timestamp on the photos with what the president was saying at that time. Supposedlyphotos, the president called the north korean rocket man, but he also called the North Koreans a band of outlaws. One of the Associated Press timestamps on the photos of general kelly going like this like watching his kid strikeout in Little League was when the president described the North Koreans as a band of outlaws. There are trumpian touches of what he wants to do. But the meat of the speech was what many republicans would have liked to hear, what his staff generally liked. U. N. Andp around the around new york, i was at the Bloomberg Business forum. The conversation was they are starting to get used to the president. Trump who was regarded as an alien figure is now less so, now that he has been to summits with top officials. They are just getting used to him. It is a mix of what he actually does in Foreign Policy and National Security policy. It is very much within the 40 yard lines of what you would expect a president jeb bush or president marco rubio to do. Charlie there has been an uptick in his ratings. Mike partly because of his handling of the hurricane. Publicityause of the he got from the deals with democrats. The president is in a great mood. He loves that all the great leaders at the u. N. Suck up to him as host. He loves the great publicity he is getting. He soaks it all in, this great moment that was reported by the New York Times where the president called chuck and said, are you watching tv . He said on fox news, they are praising you. And on your channel, apparently referring to cnn and msnbc, they are praising me. Theres nothing that makes this president more excited. Charlie he cannot he excited when he goes back to washington and finds out robert mueller, in terms of subpoenas and closer focus on Paul Manafort who used to be his Campaign Manager for a while, and evidently the effort to reach inside the white house with respect to conversations the president had with the russian or in minister and others. Mike you are right, charlie. This is a dark cloud. A fascinating quote appeared in the Washington Post this week that quoted a Government Official as saying there is now an air of inevitability about the mueller prosecution. It is not inevitability of any certain outcome, but it is that it is going to be fullcourt press until the end. That the prosecutor is taking a more expensive view of his role than anybody new, as you point out, including his investigation of the oval office conversations. We requests for documents and interviews. The prosecutor shows his hand a little bit by saying i want to talk to these six current and former aides, including reince interviews. Priebus and sean spicer. Charlie apparently, they also have wiretaps of Paul Manafort even after he left the Trump Campaign. Apparently, from some reports. And secondly, the request for documents seemed to look deeper into the president s financial background even before he became president. Mike that is exactly right. The watergate aura around this pro became more acute because now we know there are months, perhaps years of tapes. This goes back to before bob mueller was in charge of the investigation. These investor daughters investigators got a fisa warrant. Difficult to get. They were able to record phone conversations by Paul Manafort when he was in the president s orbit. It is possible the president s voice is on these tapes. There was no wiretapping directly of the president in trump tower. But the fact that Paul Manafort was recorded at the time he was running the Trump Campaign makes it possible and even likely the president is on those tapes. Charlie let me turn to one last issue, which is the whole notion that five of the biggest corporations in america are Tech Companies out of silicon valley. Certainly includes apple, amazon, google. And these companies are under increasing scrutiny because of the centrality of their business into our lives, as well as their huge resources. Mike charlie, that is so right. In washington, there has been a windshear in the sentiment about these companies. Until recently, such a romantic view of these companies. They make so many Amazing Things possible. But now, you have the extremely unusual situation of republicans and democrats agreeing on something. Charlie, im told both republicans and democrats looking into ways they can use legislation to rein in these companies. On the republican side, theyre going to emphasize the National Security and Homeland Security elements of the data that is out there and the efforts by foreign governments to use platforms that include facebook to influence elections. Democrats more concerned about the monopolistic elements of it. Republicans very unhappy with these companies because of cultural differences. They see them as being for open borders and liberal social policies. Charlie, you recognize the great irony of this on two fronts. One, the president himself has said he might not be president without twitter. That the connection he had with voters is very important. Second, more evidence all the time, including facebook saying it will turn over ads purchased by russian operatives, that maybe facebook helped the president. Irony one, republicans mad at the companies that helped trump become president. But second, that the groups and lawmakers pushing this have spent their careers and raised a lot of money being against government but they are for reining in these companies. Democrats, the first specific move taken on capitol hill was by senator Markey Warner of klobucharnd senator who sent around a twopage letter looking for cosponsors for a bill that would caught some of the promises facebook made about increased transparency and regulation of political advertising. This is a big fight. You and i were talking before we went on the air about the david brooks column this week saying this could become a defining issue in american politics. We have a war on business coming that is a sign that trump is not necessarily a oneoff. That the strain of public sentiment behind trump could fuel this continued effort to rein in these big companies. I know you have lots of conversations with silicon valley, as i do. This has been eyeopening for the leaders out there. But they know that they are now in the barrel. Charlie david brooks column also suggests the populism of brexit and the election of donald trump began some time ago. And what has emerged is the conflict between elites on both coasts and everywhere and average working men and women in america. This has been a forward progression of a big idea coming to fruition with the trump election and might extend beyond donald trump, and a central focus of it would be antiabundances antibusiness. Mike that is right. This brings together so many issues that fueled the trump phenomena. If you look at income inequality, the great wealth amassed in certain places, the huge amounts of data these us,anies have amassed about the ability of foreign governments to interfere in our elections, so you have the perfect storm of fake news, trump, hillary clinton, because we also learned this week that one hot focus of molars investigation is how the social platforms were used in the election. The parties are coming together. The Great Stories of the year are coming together with the Tech Companies as the focus. That aint where you want to be. Charlie mark, thank you so much. Mike allen from washington. We will be right back. Stay with us. Is here, thedalio founder, cochairman, a bridgewater of bridgewater associates. He created the firm in 1975. Today, it is the Largest Hedge Fund in the world with assets around 160 billion under management. Has called bridgwater the fifth most important private company in the u. S. The firms success is anchored in its unconventional culture that emphasizes values like radical transparency and truth. He expands on those ideas and more. I am pleased to have him back at this table. Welcome. Tell me the motivating reason to put this together for you. Why did you want to write this . Others make decisions better and be more successful. I was originally very reluctant to share some of these principles. They were internal. Charlie because you thought they lead you to enormous achievement in the investment world and perhaps personally as well, and therefore you did not want your competition i dont like public attention. I would rather have privacy. But when we made we were successful anticipating the financial crisis, we received a lot of attention. Because we operated with such different principles and had a unique culture, it became somewhat distorted. I put those principles we had at the time out on our website. They were downloaded 3. 5 million times. I received a lot of thank you notes because it helped people a lot. And so, i accumulated more. And now i am at a stage in my life where i am transitioning i call the what second stage of my life to the third stage of my life. The first stage of ones life is when one is dependent on others. The second stage is when we are working and others are dependent on us. The third stage is when they all do well without me or without us. So my objective is to try to help others be successful without me. This is my year of transition from that stage, the second stage to the third stage, and i want to put everything i had of value in that one book. It is a series of recipes essentially of what i have used. I also hope it will encourage other people to write principles. You know i have been trying to get you to write your principles. I think if we can have principledlevel thinking, when something comes along, what do we do about that . How do you handle that reality . And we are clear on our principles. I think that would be important. I think it is particularly. Important at this time. Charlie i want to talk about your principles. Born in queens. Your father was a jazz musician. Mother . Stayathome mom. Went to Long Island University and onto Harvard Business school. Was a caddie and made a little money and invested successfully on a small scale. But it gave you some great desire . I got hooked on playing the game. Charlie that is right. The game was what . The markets . Carrying was 12, i was caddying money and the stock market was hot. I took my money and thought i would buy stocks. The First Company i bought was the only company i have heard had heard of selling for less than 5 a share. That was a dumb strategy, right . But what happened was this company was about to go and crept bankrupt and somebody acquired it, and it tripled. Idaho on the markets i got hooked on the markets. It began as a game and change my way of thinking completely. It changed my way of thinking because in order to be successful in the markets, you have to have an independent view that is different from the consensus because the consensus is built into the price. You have to have an independent view different from the consensus. And you will be wrong a lot. And that began to influence my way of thinking. Charlie you were wrong in 1982 or thereabouts . Super wrong. Charlie you bet the market would go down in the market started on a bull run. One of the greatest ever. Charlie you bet against that and went broke . Went broke, yeah. Anticipated and calculated countries could not pay their debts back to american banks. And that happened. In august of 1982, mexico defaulted. A number of countries defaulted. I thought that would cause an economic disaster. That was the bottom of the stock market. I got a lot of attention. I was on wall street week and all of that. And i couldnt have not been more wrong. I had to let everybody go. They were like my extended family. I was so broke i had to borrow 4000 from my dad to pay my family bills. It was one of the most painful mistakes that ever happened to me in my life. And it turned out to be one of the greatest things that happened in my life. And that was because i went from knew to asking myself, how do i know i am right . Needed me the humility i to balance with my audacity. And it really led to this democratic way of operating. Torlie you wanted to say everyone working with you because of the lesson of 1982, lets test every idea and make sure we are right and listen to test critics of our idea and let it prove its worth. It started with me. I did not have anybody at that time. Witharted me thinking me thinking, what can i do to be better . In particular, i wanted to speak to the smartest people i could that disagreed with me to find out what their perspective was. I wanted to know how to balance my risk, and i also wanted to look at history in a different way. The most important thing it gave me was that need to be among independent thinkers who disagree and to get the most out of that disagreement to develop an idea any democratic way. To develop an idea meritocracy where the best ideas win out, that they are not just mine. I think one of the greatest tragedies of mankind is holding onto opinions that are wrong, being so attached to them so by putting them out there and stress testing them, it was essential. We wanted to have an effective idea of meritocracy, this is the key to our success. First, everyone has got to put their artist thoughts on the table. Speak frankly. Most people will not do that, but that is what we do. You have to use the art of thoughtful disagreement. Enjoy disagreement. It does not mean it is conflict. Of then exploration better ideas that can come than just the ones in your head. You have to have a way of getting around disagreements if you have remaining disagreements. How you get past those disagreements, move on, and find that acceptable. We have what we call believability waited decisionmaking. In most decisionmaking, there is either the boss who makes a decision in a hierarchical way, or you have a democracy in which everyone has equal votes. Both of those are not the best. In other words, the boss making the decision how the you know the boss is right . In the equal votes that is silly because not everyone is equally informed. So you do it based on past performance . So, there are points. Literally, someone has a certain amount of believability points on different expertise. Is it an economic question, a legal question, requiring different attributes . Somebody might be a big picture thinker but be lousy at details. Somebody might be really perfect that details or the opposite. When we think about that, our idea meritocratic thinking. You can then write those decisionmaking criteria down in principles, and we have converted those two algorithms that make computer decisions in parallel. That has been our formula for success. Charlie that is the formula. Not you, not one individual, but the process is what has prevailed. Thats right. Thats right. Charlie a bit more about the company. Talk about this. He basically said you are a jerk and you do not know much you are offending people and hurting people by your comment. 1993, i was a time in am working with a small group, and they told me that, which is great. And i said i do not want to hurt peoples feelings. I do not want to do that. But i want to speak frankly and i want them to speak equally frankly with me, so i was in a dilemma. Good id 100 straight forward them and was going to work could i be 100 straightforward with them and was thats going to work . And then i realized i should have conversations with them and ask how do you want me to be . Can we work that through or should i keep to myself . Should we have a culture in which those things are behind the seen, which would mean a political culture. We began a process in which we wrote down how we should be with each other. We had principles which became to how to develop an idea through radical transparency. Let me be clear. This is not for everybody. This is not for everybody. People encountered that one way some people would not want it any other way. That radical straightforwardness. And some people love it. We go through that process, and that was an example. I think that is such a good havele that i would not known that if people did not speak up like that. You know . There are so many things in my life that i probably would have just been clueless too. Charlie let me ask you this. I mean, in 20072 thousand eight, when everyone was losing money, you made money bigtime, and it gave you a huge reputation in the financial world. Global financial world. Was it the process that you believe it enabled you to make the right decisions and the right calls . Yes, because whatever ideal charlie whatever idea you had, he wanted to test it in every possible way without concern for feelings or emotions. Just the meritocracy of the idea. Idea that was controlling where you place your funds. It was kind of a crazy view. When i say crazy, what i mean is it was a view that nobody had. It was a bubble. Enormous like prosperity, and i am talking about a bust. How do i know i am right . How do we have that independent thinking so we can step aside from the crowd and make a bet that is opposite the crowd and know how to manage that successfully. Thinkers whondent will stress test each other. I will go wherever the greatest, smartest disagreement is. What did we do before phones . They save us from getting lost, getting hungry, and getting tired of places like this. Phones changed everything shouldnt the way pay for them change too . Introducing xfinity mobile. Where you can pay for data by the gig, and share it across all of your lines. No one else lets you do that. See how much you can save when you pay by the gig. Xfinity mobile. Its a new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Charlie then there is the case of gregg jensen. Late 60s. Re in the who was the right person for this next job . You made a mistake. Yup. Use thishow did you perfect process and come to the wrong conclusion . That is the process. I think i explain how failure is such an important part of the process, the learning process. Rightot know what the decision is, and the ability to, in any case it have not done something before, i think there is a high probability i am awkward to do it right. When we started out, we said this could be a tenyear plan i knew i did not know necessarily how to do that, so we undertook that process and we learned about different things, to mistakes i made in terms of in thishat choice particular case, it was a situation that because the business had grown up under me, i was both an investor and running a business. I gave something that was too big, both management and investing. I gave something that is too big and even was getting too big for me with experience. And then weto greg, went to that. What we saw was disagreements as to what should be done and how to do it. One of the great things that we ideas because we have this meritocratic system that we we could workat ourselves through that even though we might have those differences. If you not have a system for getting past this, think about the recent president ial election. You have somebody who winds the popular election. Electoralrson wins haulage. If we did not have rules, we would have a civil war. Because there are procedures. Not haveif you do rules and i am not going to accept this result, then you have a real problem and breakdown. That is right. Charlie that is what wall of law is so important. That is why will of law is so in rule of law is so important. It has to be perceived as being fair. And you have to believe in what fact and truth is. But also knowing you may not know truth. Fax, buto find your different able perceive the facts. The key is how do you work yourself through disagreement well by the process . This idea meritocratic process meant most companies under the same circumstances would not have gone through their argument because the individuals i involved would have said that jerk or whatever and they would have had it. Even though you think it is everyone around you think that its wrong, and you take a vote, you can get past the disagreements. That is a very big power of the idea meritocratic process. Charlie it was your decision and your decision alone no, no, no. Charlie so there was a committee almost like a jury . Literally like a jury. There was a group of 15 senior people. That is how it works. There was a group of 15 Senior Management people, a group we ,all Stakeholders Committee which is like a board, and we are all a community together, so we all got together and we heard the different positions and we went through that and took a vote and we decided what should be done. Everyone thought it was there. Charlie what was the end result . That we would make a gransition, at the time, to gre working as a chief investment officer. Part of that process. And the management responsibilities for a year would commit back to me. We made that transition. We went on to have me step back into the chairman role. Then of course, i am doing the investment. I will always do the investment part. Charlie you always do the investment part . It is my game. I love to play the game. I will for the rest of my life play the game. In terms of making other people successful i never had to be dependent on. I want to make the other people around me successful. I will do the game, but in a way where i am making the success of paramount importance. In other words, to teach the man how to fish. Charlie when people say this blonde like a cult, does that affect you this sounds like cult, does that offend you . It is just a misunderstanding. Charlie everything is on the record and therefore there is no avoiding what you have said because somewhere, somebody has recorded it or taken a picture of it. Just so everybody understands, that is so everybody can see everything. Charlie so you stay on the same page . You cannot have an idea of a meritocracy if i do not easy something, you cannot have an opinion on it. Those who control information are those in control. Thisea meritocratic is so everyone can see it firsthand, make opinions of it, and judge it. Let me describe what this is about. It is to have an idea meritocracy in which the goals are equally to have meaningful work in meaningful relationships , to be excellent work and excellent relationships, and to do that, through radical and radical transparency, so you can see everything. That is the basis of our idea meritocracy. And it has worked. Charlie you think this could be applied to almost all of the Big Questions of our time . Rigorous this kind of process, we would come to a much better understanding of all the complex issues, whether it is Climate Change or whatever it might be . Of course. Charlie fighting terrorism or making decisions about investments . Sebastian whatever the decision is, the process is equally whatever the proces decision is, the processs equally valid. Art of thoughtful disagreement so we can pull that together and get past those disagreements in an idea meritocratic way. Have goodu can relationships. It is a personal relationship thing, too. In other words, how are you going to work with each other . Charlie with this obliging marriage is as well . It applies to any relationship you better establish what your principles are and how youre going to deal with each other. You do not have to follow in an idea matter credit an idea meritocratic way. Be reasonable and be considerate. I will be very reasonable and considerate. We will have to have that thoughtful disagreement. Ways of getting past that thoughtful disagreement regardless of our relationships, and any relationship i have, that is a personal belief. That is what has served me well. That has worked out. Charlie also what has served you well is your curiosity, the full sense of wanting to learn as much as you can. Along the way, and you have haved about this, new shared the friendship of instrument people. There is a man on the Standing Committee in china called levelknown to the the top as one of the most important people in china. He is one of the people i admire the most because you think his mind is in total pursuit of understanding how everything is connected, it kind of theory of everything. Tell me more. I admire him. Volcker and many people. Because of the ability to go above things. World asrk down at the a reality machine, and to just think how does that reality machine work and to recognize that everything happens over and over again through the same things happen over and over again. Everything is another one of those. When we start to think about how does reality work and what are the principles for dealing with reality . We can talk about principles for parenting and so on. He thinks of human nature. It is basically almost that there are a limited number of personality types. Maybe there are 20 personality types. There is a limited number of situations, and these things keep happening over and over again. When we start to see the patterns and look for the patterns, it is almost like you can see the universal theory of reality. He is striving to do that and he looks at the world that way. It is intelligent. It is not emotionally carried away. He appreciates the beauty of reality, even the harsh realities. So i admire him for that. Charlie i assume you are in constant pursuit of greater understanding because the principles are a continuum. Bad, worrying about appearing good. That, make your decisions on the firstorder consequences. Good, make your decisions on the basis of first, second, and third order consequences. You are constantly adding principles. He started with 10 and now you have 200. I have learned something. I got into the habit of taking whatime and writing down is my principal for dealing with that thing . I am constantly learning. By the way, it is the best habit. I recommend it for everybody. Happeningomething is ,nd you are making a decision write down your criteria for making a decision. When you are doing that, you can also communicate it to others and refine it over time. Us asas been magical for found that we can convert that into algorithms. Runninghave computers parallel and making those decisions with us. This is happening. This is the type of thing that is the key to success to be able to think what are my rules . So when another one of those comes along, i handle it well. Charlie are you saying you are teaching machines had to make the kind of Investment Decisions that only human beings have been making at bridgewater . No, we have been doing this for 25 years. Charlie but you also have a Huge Investment in artificial intelligence. Yes, and algorithmic decision. Thats right. It is a language. An elder is just like writing, it specifies this criteria. If you think of the brain, as you know, the brain is 89 areion neurons, so those little computers. Charlie interesting slip of tone from neuron to euros. [laughter] they are little computers. They are programmed literally that way. And then data comes in. And that is how we make decisions. Nowadays, we can take our criteria and we can specify those. And we can have computers make decisions in parallel with us. It is like using a gps. That is what it is like. Charlie where does intuition and instinct hunch play in all this . It is critical. It is what the computer cannot do well. In other words, it is the subconscious. As you know, man although only 200,000 years old, the brain is much older, and we came programmed with many of the things in our brain, intuition and some things. They are in our subconscious. So, by opening up one possible subconscious to consciousness so they come up, you know, creativity comes from not working hard at it. It comes to relaxation. It bubbles up from the subconscious. Charlie that is why you believe in transcendental meditation . It has been invaluable to me because it helps to build that. That intuition, that creativity, man is still unique at being able to do those things. You would let that bubble up, but you would have to reconcile that with your logic, so when he subconscious comes up and you itlicated with your logic, is fabulous, but you take what you learned, and you just do something with it. Our converting it into our words into how the rhythms and realizing that has been valuable. The computer can process information a lot less emotionally. You dont have to do that to have an idea meritocracy. I want to be clear. Anybody in any relationship can have an idea meritocracy. Charlie where is the Global Economy haeaded . Thatdid a 30 minute video i know you saw on how the economic machine works. So if i can make this clear, there are three main forces. It is productivity. Another, we learn, we invent, and then there are two big cycles around that. There is the short terms that cycle, which we call the Business Cycle which lasts for about 10 years maybe. And then, there is a long term cycle, a longterm debt cycle, which accumulates and you build up a lot of obligations for the future and that is a burden on the future. , productivity is rising, although it is much difficult to measure so i wont get into that too much. We are in part of the site goal which is when the economy is not too hot and not too cold and wind inflation is not too high and not too low. Worldwide, generally speaking. It is a good part of the cycle. Ok . We have an enormous number of liabilities. They are not in the form of debts. They are also in the form of pension obligations. Charlie are they debt . They are a type of obligation. There is also the health care obligations. We have a demographic that is changing. So that is changing. And then as a backdrop, we have two different economies, with a . There is the two different economies, ok . There is the top 40 purity can make it the top 20 and the bottom 80 . Two different economies. Two different world. That disparity in wealth and circumstances is the greatest since the 19351940 period. The top charlie what you think is the most interesting comparable period . Which i think is most interesting comparable period. The top. 1 of the population has a net worth equal to the bottom 90 combined. Economy of at the the bottom 60 , just say what does that economy look like . It is a miserable economy with a miserable set of circumstances. There is growth. Death rates are rising. Opiates, and so on. It is a miserable economy. We are in a period that is analogous to that where there is a gap. About the economy, we should start to think about the two economies. We need to deal with that other economy. There is technology that is about the economy, we shouldwonderful, but at the , it is replacing people. When we deal with algorithmic decisionmaking, and when we deal of that process, we can expect that that is going to increase the wealth gap, and it is going to increase that. Biggest economic, social, and political issue of our time is that split and how to deal with it. Charlie how can our society divided it does not deal with that split . That is the question. It is 7 00 a. M. In hong kong. I am yvonne man. Welcome to daybreak asia. With aeads a tech selloff. Gold selling above 1300. Brent crude jumps to a twoyear high as Turkey Threatens bloombergs global headquarters, i am betty liu in new york, where it is just after 7 00 p. M. On this monday. Elsewhere, this just breaking, the latest republican attempts to replace obamacare is dead in the water after