Lessons From The Asian Financial Crisis | Russell Napier
Forward Guidance
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The Birth of the Age of Debt
China devalued in 94 age of the values in 97 and then launched from 98 this massive accumulation of foreign exchange reserves which is a massive accumulation of developed world debt 62 percent of which is United States Treasury. The growth by the way was six trillion dollars worth of foreign currency debt so that freed up savers in american elsewhere to go off and finance other things like el musk or whatever they wanted to finance. So there was now even more capital to go and gear up something else in the private sector because a lot of the public sector debt was being held by these people interest rates were being held down their exchange rates were undervaluedso they were importing deflation to the rest of the world.
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