Interpreting India cover image

China's Path to Economic Recovery Post-Coronavirus with Michael Pettis

Interpreting India

00:00

The Impossible Trinity in China

The world will continue using the dollar, not because the US has more aircraft carriers. The imbalance between the demand for savings and the supply of savings gets resolved by dumping effectively excess savings in the US markets. If you want your currency to be the dominant global reserve and trade currency, it's very simple. And China refuses to on the contrary, China is an exporter of excess savings. It has way too much domestic savings. That means China cannot accommodate monetarily a huge expansion and a huge increase in debt. So something has to break and we'll see what that is.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app