Kenny: I think we're in the very late stages of this long term debt cycle. How can you level up an economy from 100% debt to GDP and still make it sustainable? Well, you lower borrowing costs. So basically Japan has been stagnating effectively for the last 20 years because they reached the point where you cannot lower real interest rates anymore. And the private sector is not willing to lever up more. The risk is that you keep stretching the system until like in Japan in the 90s you end up creating too much leverage and at some point the bubble burst.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode