Are we heading into Great Depression 2.0 as a result of the higher-for-longer interest rates, and the resulting bankruptcies of companies? Or will Central Bank money printing cause inflation but avoid depression?
The Chinese economy is in a potentially worse spot than the US economy - Michael Pettis says 1 unit (or UNIT) of nominal GDP growth in China requires 6-7 units of nominal debt.
China's economy is heavily dependent on exports to every country around the world.
If a severe global economic downturn ensues, the Chinese economy might suffer more than less export dependent economies. How will that affect Chinese gold buying and selling?
China's economic model hasn't changed from the old Opium War days - exports far more than it imports and hoards silver then, gold today.
Always a good interview with DK. You mentioned around 37:50 that commercial credit is contracting, and equities could face a 70% correction whilst the currency is also undergoing severe debasement. Is that not a mutually exclusive event? - i.e. in Weimar & Venezuela the stock markets inflated alongside the currencies? Or is it more just part of the process whereby in response to this potential bear market central banks extend credit in an attempt to re-inflate equities and keep the banking system solvent? (which I assume is what you meant at 40:34 regarding central bank credit being highly inflationary in an attempt to support the economy)
Thank you for an excellent interview.
Are we heading into Great Depression 2.0 as a result of the higher-for-longer interest rates, and the resulting bankruptcies of companies? Or will Central Bank money printing cause inflation but avoid depression?
The Chinese economy is in a potentially worse spot than the US economy - Michael Pettis says 1 unit (or UNIT) of nominal GDP growth in China requires 6-7 units of nominal debt.
China's economy is heavily dependent on exports to every country around the world.
If a severe global economic downturn ensues, the Chinese economy might suffer more than less export dependent economies. How will that affect Chinese gold buying and selling?
China's economic model hasn't changed from the old Opium War days - exports far more than it imports and hoards silver then, gold today.
Always a good interview with DK. You mentioned around 37:50 that commercial credit is contracting, and equities could face a 70% correction whilst the currency is also undergoing severe debasement. Is that not a mutually exclusive event? - i.e. in Weimar & Venezuela the stock markets inflated alongside the currencies? Or is it more just part of the process whereby in response to this potential bear market central banks extend credit in an attempt to re-inflate equities and keep the banking system solvent? (which I assume is what you meant at 40:34 regarding central bank credit being highly inflationary in an attempt to support the economy)