A deflationary shock for the global economy

Livewire Exclusive

Livewire Markets

“China’s had one of the biggest credit booms in modern history. Historically, credit booms of that size, which happen that quickly, they all result in financial crises,” says Harry Colvin, Senior Market Strategist at Longview Economics. So can China’s economy finally fulfil the age-old mantra of ‘this time is different’? He doesn’t think so. So after so much speculation, why now? “The Fed have been tightening up Dollar liquidity and ultimately, China’s financial system is dollarised. If you tighten up Dollar liquidity, you tighten up China’s financial system.” In his view, the Chinese government has not provided sufficient stimulus to offset this tightening, so “the next leg is down.” Watch the full video below to find out how this will affect Australia and the rest of the world.


Livewire Exclusive
Livewire Markets

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment