Methodology: Measuring the Strength of Nations
For this analysis, Ray Dalio identified eight core pillars that measure a nation’s different types of strength. These eight categories are:
- Trade
- Innovation and Technology
- Education
- Economic Output
- Military
- Financial Center
- Competitiveness
- Reserve Currency Status
Scores for these categories were quantified using Z-scores, which tells you how far a data point is from the average of the dataset, using the typical amount of variation (a standard deviation) in the data as a measuring stick:
- Z-score of 0 = data point is at the average
- Z-score of 1 = data point is one standard deviation above the average
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0 sats \ 0 replies \ @Msd0457890 27 Sep
They have always been on par in all areas as nations. Currently, their economic aspects are not doing so well. China is heading straight for an economic recession due to the measures the government has taken and the United States has raised the probability of a recession occurring by the end of this year to 35%, up from 25% previously, citing easing labor market pressures.
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0 sats \ 0 replies \ @Satosora 26 Sep
Their reserve currency status...its laughable.
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