Credit Boom Ping Pong - From 1985 to 2015

The latest commentary from World leading International Economist, covers:

  • Credit Boom Ping Pong - "rather than embarking on credit boom "ping pong" with the EM, the Western world should have invested in raising productivity"
  • USA International Capital Movements - "As a result of successive waves of capital flows and the credit booms that they encouraged (and indeed facilitated), we find that the Emerging Market world is now even more indebted than was the developed world in the mid-2000s ahead of the GFC"
  • Private Debt to GDP ratios - "In an effort to remedy this weak cashflow situation, many countries within the EM have embarked on the heavy discounting of goods, the outright dumping of goods and weaker currency regimes. Hence, these EM are once again exporting significant amounts of deflation to the rest of the world (and we might add to each other as well)."
  • USD Bank Credit - "We are therefore left with the rather worrying conclusion that there are probably no significant players left within the global system that can borrow more and inflate their balance sheets further to offset the deflation that is emanating from Asia"

 

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