The Pettis primer on imbalances

Anyone interested in economic imbalances or their own financial health should take the next 45 minutes to listen to the Michael Pettis on the Great Rebalancing (otherwise known as the GFC). It will eventually arrive at Australian shores.

 

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)

Comments

  1. Nice one R2M.

    Further, Pettis on impact of re-balancing their economy…

    http://www.mpettis.com/2012/09/16/by-2015-hard-commodity-prices-will-have-collapsed/

    “as China’s economy rebalances towards a much more sustainable form of growth, this will automatically make Chinese growth much less commodity intensive. It doesn’t matter whether you agree or disagree with my expectations of further economic slowing. Even if China is miraculously able to regain growth rates of 10-11% annually, a rebalancing economy will demand much less in the way of hard commodities.”

  2. ¡Estamos jodidos!

    If Pettis is right we might have a few OK years left (he has been on this theme for a long time…on a long enough timeline…).

    We’ve been very fortunate.

  3. Very interesting to listen to someone who knows his subject matter so well, and can synthesise so many different lines of evidence into a coherent whole.
    Thanks