Richard Koo: China’s “Balance Sheet Recession” Has Already Started | (Jack’s Final Episode)

Bearish:

• $CHINA - China's economy is showing signs of a balance sheet recession, similar to Japan's experience 30 years ago. Despite low interest rates, there's low borrowing and debt repayment, indicating potential economic troubles.

  • “Chinese statistics, especially for low funds data, not not coming out, quickly enough. So it's very difficult to determine what is actually happening. But we are now hearing that not only many people are not borrowing money or paying down debt even with this very low interest rates in China, which is exactly the same as what happened in in Japan 30 years earlier.”

    Richard·16:00

  • “The bond rates are coming down to the 10 year Chinese government bond rate is down to, like, 2.1%. Now for developing country like China, which still has lots of investment opportunities, and they have lots of companies that are highly competitive on the export market. They should be borrowing and spending and expanding their capacities.”

    Richard·16:00
• $USD - The US dollar is potentially overvalued, causing economic issues and discontent among some Americans. This overvaluation, rather than free trade, is seen as the root cause of economic problems.

  • “I hope more people understand that those people who are supporting Trump, unhappy with US government, not taking action to correct the overvaluation of the dollar, is really the victim of the overvaluation of the dollar, not the victim of free trade.”

    Richard·1:02:05