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China's Ronald Reagan - Ken Rogoff
2 segments available
Ken Rogoff is the former chief economist of the IMF, a professor of Economics at Harvard, and author of the newly released "Our Dollar, Your Problem" and "This Time is Different". On this episode, Ken predicts that, within the next decade, the US will have a debt-induced inflation crisis, but not a Japan-type financial crisis (the latter is much worse, and can make a country poorer for generations). Ken also explains how China is trapped: in order to solve their current problems, they keep leaning on financial repression and state-directed investment, which only makes their situation worse. We also discuss the erosion of dollar dominance, why there will be a rebalancing toward foreign equities, how AGI will impact the deficit and interest rate, and much more!
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Xi Jinping: The Missed Opportunity
Ken Rogoff discusses Xi Jinping's rise to power and the expectations that he would liberalize China's markets akin to Ronald Reagan's policies. However, Rogoff highlights that instead of significant reforms, China's growth has slowed under Xi's leadership, leading to overinvestment in infrastructure and housing, particularly in tier three cities. He emphasizes the challenges China faces, including a lack of job opportunities and a demographic shift where young people are reluctant to live in these overbuilt areas.
"When Xiinping came in, I was told he was going to be Ronald Reagan. They were telling me he's going to change everything. You know, this is really the time we're going to liberalize our markets a bit...."
Xi Jinping: The Missed Opportunity
Ken Rogoff discusses Xi Jinping's rise to power and the expectations that he would liberalize China's markets akin to Ronald Reagan's policies. However, Rogoff highlights that instead of significant reforms, China's growth has slowed under Xi's leadership. He points out the overbuilding in infrastructure and housing, particularly in tier three cities, where young people are reluctant to live due to a lack of jobs. This segment underscores the challenges China faces as it grapples with its economic structure and the consequences of prolonged financial repression.
"When Xiinping came in, I was told he was going to be Ronald Reagan. They were telling me he's going to change everything. You know, this is really the time we're going to liberalize our markets a bit...."