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Michael Pettis: China's Economic Growth Model Is Dying

Forward Guidance

English - May 08, 2023 11:06 - 1 hour - ★★★★★ - 199 ratings
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Previous Episode: The Fed’s "Controlled Demolition" of The Financial System | Danielle DiMartino Booth
Next Episode: Why The U.S. Dollar Could Fall Even In A Recession | Jens Nordvig

Michael Pettis, Professor of Finance at Peking University and senior fellow at the Carnegie Endowment for International Peace, joins Jack Farley to share his thoughts on the Chinese economic growth model, which Pettis argues faces severe challenges.
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Today’s show is brought to you by VanEck. Go to https://vaneck.com/ForwardGuidance
to access VanEck's Income Investing Yield Monitor.
__
Follow @vaneck_us on Twitter, this episode's sponsor https://twitter.com/vaneck_us
Follow Michael Pettis on Twitter https://twitter.com/michaelxpettis
Follow Jack Farley on Twitter https://twitter.com/JackFarley96
Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance
Follow Blockworks on Twitter https://twitter.com/Blockworks_
Timestamps:
(00:00) Intro
(00:40) China's Economic Growth Model
(18:32) The Explosion of Debt in China
(26:01) Van Eck ad
(26:51) Domestic Consumption In China
(35:04) How The Chinese Banking System Actually Works
(39:04) Beijing's Controlled Demolition Of The Chinese Real Estate Bubble
(43:20) Trade Imbalances Have Facilitated Massive Debt Creation in The U.S. And China
(49:01) Why China's Use Of The Dollar Will Likely Continue
(01:00:46) The Chinese Stock Market Does Not Track The Chinese Economy
(01:02:45) Is The People's Bank Of China Adding Liquidity?
(01:04:55) Chinese Growth in 2023 Could Actually Be Strong Relative To The U.S.
(01:08:28) Closing Thoughts On Long-Term Chinese Economic Growth: Why The Pessimists Aren't Pessimistic Enough

Michael Pettis, Professor of Finance at Peking University and senior fellow at the Carnegie Endowment for International Peace, joins Jack Farley to share his thoughts on the Chinese economic growth model, which Pettis argues faces severe challenges.

__

Today’s show is brought to you by VanEck. Go to https://vaneck.com/ForwardGuidance

to access VanEck's Income Investing Yield Monitor.

__

Follow @vaneck_us on Twitter, this episode's sponsor https://twitter.com/vaneck_us

Follow Michael Pettis on Twitter https://twitter.com/michaelxpettis

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/Blockworks_

Timestamps:

(00:00) Intro

(00:40) China's Economic Growth Model

(18:32) The Explosion of Debt in China

(26:01) Van Eck ad

(26:51) Domestic Consumption In China

(35:04) How The Chinese Banking System Actually Works

(39:04) Beijing's Controlled Demolition Of The Chinese Real Estate Bubble

(43:20) Trade Imbalances Have Facilitated Massive Debt Creation in The U.S. And China

(49:01) Why China's Use Of The Dollar Will Likely Continue

(01:00:46) The Chinese Stock Market Does Not Track The Chinese Economy

(01:02:45) Is The People's Bank Of China Adding Liquidity?

(01:04:55) Chinese Growth in 2023 Could Actually Be Strong Relative To The U.S.

(01:08:28) Closing Thoughts On Long-Term Chinese Economic Growth: Why The Pessimists Aren't Pessimistic Enough

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