Sunday, September 27, 2009 2 comments ++[ CLICK TO COMMENT ]++

Financial Times interview with Michael Pettis

I ran across a very good Financial times interview with Michael Pettis that touches on some of the key macroeconomic issues pertaining to China (it's a 3-part interview so it will automatically continue to the other parts if left alone.) Michael Pettis, as some of you may know, writes a generally insightful and unique blog at China Financial Markets. I say unique because, on top of being an expert on China, Michael Pettis teaches at Peking University in China and appears to have a greater understanding of the situation on the ground. None of this means that his views are always right but it does mean that China investors should pay attention.

The interview with FT covers global trade issues and potential outcomes to the imbalances that permeate through the air. I especially recommend that everyone listen to this 3-part interview because Micheal Pettis clearly explains complex trade mechanics in a manner anyone can understand. On this, he is almost like Paul Krugman and his writing. Articles on Pettis' blog or on financial websites tend to be dry and complicated but Pettis articulately explains it in a few sentences. In particular, I like how he explains that it is almost impossible for China to reduce its US$-denominated asset purchases. This is also the first time I have seen anyone suggest the notion of a 'US$ glut.'

(Thanks to Prieur du Plessis and SeekingAlpha for bringing this to my attention.)

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2 Response to Financial Times interview with Michael Pettis

sunny
October 1, 2009 at 12:36 PM

Great video! ive been reading this blog for sometime and its very informational espically for a contrarian investor. The current divergence between the stock market and the bond market where the bond market is rallying makes me nervous. Keep up the good posts!

Sivaram Velauthapillai
October 1, 2009 at 4:53 PM

Thanks for the kind words :)

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