China’s “Balance Sheet Recession” Has Already Started | Richard Koo

I have to listen to this one multiple times, wow

Is his name Gordon Chang

At last
An American economist without a need to tell tales to suit a profit premise.

Trump wants to lower fuel costs. Which will eventually reduce inflation

Trump only use tariffs only if the other countries uses tariffs on US goods. He wants and favours free trade

Currency price is determined by capital flows and trade flows. Not by central bank intervention

M2 is crucial

M2 is crucial

Free trade does not equate to fair trade

Brilliant analysis, thank you guys

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

US keeps dollar strong, production weak, and the dollar printers running , filling holes production hollowing leaves, exporting inflation

Excellent discourse but I beg to differ with the view that China can’t export its way out of its B/s recession for the following reasons:
1) it is undeniably that China is now the most powerful industrial economy. It can effectively produce cost effective and quality products that many nations need them ( except Us and some of its allies for geo political reasons - not all as Spain , Italy and even UK may seriously consider to differ especially with China’s cheap offer of products related tongreen technologies.

2) China’s stable currency. Well supported to ensure steady trade balances.

3) The growing BRICS conglomeration should provide an added viable buffer for its exports. For example, Trade mushroomed with sanctioned country like Russia following US imposition of sanctions. China good relationship with a large n growing no of friendly countries surely provide viable outlets for its much sought after products.

4)China is not naive and should have got ready lines of ammunition to confront the likely greater sanctions in the years ahead especially after the coming US election.
BRICS GDP size has just surpassed that of the G7 so China’s exports can still have room to grow.

5) Central planning - can channel trade surpluses for its good use in a more speedy n effective way.

6) China’s Growing technology prowess with cutting edge technology will spur cost efficient manufacturing that the world needs.

I also beg to differ that the situation in US is kindergarten compared with China’s. US debt is now over usd35 trillions and is growing uncomfortably at usd1 trillion every 100 days .
The interest payments alone is at a staggering usd900billion per yr!!!
The cost of labour is too high for its manufacturing to economically moved back to Us not to mention its possibility to overtake China’s manufacturing complex
7) if china goes down so is the bunch of developed nations.

The problem is that chinas governament has already a lot of debt

Death threats for an American economist in Japan. I didn't expect to hear that.

BOYCOTT ALL CHINESE PRODUCTS!!! STOP CHINESE AGGRESSION!!!

Jalen Corners

Just throw out the balance cheets

Fantastic insight. Much appreciated.

This guy is a genius.

Trump 2024!!

Well what should happen to a bankrupt company is that the owners (Equity holders) get ZERO, Bond holders get pennies on the dollar, old management gets fired and new owners and new management continue operations with renewed profit driven energy. Job losses are a red herring, if operations are fine the jobs will be fine. The old owners and old management have the crisis no one else. Balance Sheet crisis is just mumbo jumbo to protect the guys who screwed up and want to protect their asses.

I am happy people in economy and society realized that debt is not a moral option for sustainable living and use low interest to pay down debt. You should use debt only for big projects in your life or extreme situations, not everyday needs.

The biggest driver for a fall i industri jobs in the rust-belt is gains in productivity (machines, robots, etc).

Question: why does a weaker dollar lead to more inflation, and a stronger dollar protects against inflation?

Why is Google pushing this and another one year old rubbish to me?

Tired of the "recession is coming!" threat. Recessive periods come along with equivalent market opportunities if you are well informed and equipped, I've seen folks amass wealth in the midst of economic turmoil and even pull it off easily in favorable conditions. Invariably, the collapse is getting somebody somewhere rich

This guy is a Taiwanese living in Japan.. naturally he is anti China and wants to slander China as much as possible.

Another Gordon chang

Detective of Money Politics is following this very informative content cheers from VK3GFS and 73s from Frank from Melbourne Australia

as long as they keep the same system, very unstable environment passing from one to another. The policy changes overnight and people may get arrested. Investor see risk too high and back off. There is no way out.

Definitely double thumbs 👍🏻 for this interview mate. Thanks for a brilliant topic. Sadly this is one of many video I find learning about economics and the broader market for my trades. However finding it would be your last video is not very happy result.

very funny: hes talking about that...since 2010! (interview on New Economic Thinking)

Keynes explained that cutting interest rates can be like pushing on a piece of string🤔

近期的市场表现只能说明这位所谓的专家学者只是在放屁罢了

Bullshit

nooooooooooo Jaaaaaaaaaaack noooooooooooooooooo

Can we know more about what usa financial systems and very deep financial troubles and debts crisis now,,,???... and how can usa keeps on overprinted itusa dollars,??.. But usa not dare to assure and guarantee its overprinted dollars trustworthy anymore now,,,??... why and will usa become worthless and useless currency soon,,,??.. or will usa dollars be devalues down wards to 1usa dollars for 1japan yen,,??.. to be fair value for japan,,,???...

What about will usa dollars devalues down wards to 8 usa dollars in exchange for 1 china yuan , to be fair exchange rates for china, and usa unguarantee dollars now,,,,?...
Or 1 china yuan exchange for 8 usa dollars,,,,???....

Why usa not dare to be responsible for usa own dollars anymore now,,,???..
Like usa assure all holders of usa dollars, can very easily exchange for 1ozs of pure solid gold coins or gold bars from usa central treasury bank for how many usa dollars anymore now ?...why,,,,???...

Ok, blockwork branded itself as anti China outlet

The market, whether in recession or not, will always be positive to shrewd investors. You just have to know your way around the market. The recent Fed cut is a big advantage also that any serious person will take advantage of. No better time to let the economy work for you than now.

Japan's economic problems really began not because of the Plaza Accord but because the BoJ had aggresively expanded money supply after 1985 way beyond credit growth demands. Much of this money was misallocated and resulted in massive asset inflation. Many sogososhas back then found it easier to make money simply by buying up assets that kept on increasing in value rather than producing. When the bubble burst, it was the banks that bore the brunt of the balance sheet problem and not so much its corporations. Thereafter, the banking sector was consolidated followed by massive cash injections to keep them afloat thus further worsening the mismatch between money supply and credit growth. Of all things, Japan had followed in the footsteps of the US in solely relying on monetary policies to manage its economy. This is the root of Japan's problems which persists until today. China's property sector problem is limited to the recklessness of its developers and has little to do with its productive sectors. Therefore, to equate what happened in Japan to what is happening in China is totally misguided.

Whenever I hear "the only way to save the situation is for the government to borrow", I think:magical thinking. There is this one entity, central planning entity, that is outside of reality

Govt is last man standing to lend money and facilitate growth while paying 1 trillion in interest. Lol

Talk too much. Too many topics in your ADD addled rambling. One topic. One question at a time and let the speaker speak. He orbshebisbthe expert.

He deserves the Nobel Prize in Economics. Bought his book and read it again and again.

In essence, Keynes - Britain was less hurt from 1929 ergo.