By Tyler Durden
Authored by Raul Ilargi Meijer via The Automatic Earth blog,
For those of you who don’t know Andy Xie, he’s an MIT-educated former IMF economist and was once Morgan Stanley’s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing’s favorite person. He’s now an ‘independent’ economist based in Shanghai. He gained respect for multiple bubble predictions, including the 1997 Asian crisis and the 2008 US subprime crisis.
Andy Xie posted an article in the South China Morning Post a few days ago that warrants attention. Quite a lot of it, actually. In it, he mentions some pretty stunning numbers and predictions. Perhaps most significant are:
“only China can restore stability in the global economy”
“The festering political tension [in the West] could boil over. Radical politicians aiming for class struggle may rise to the top. The US midterm elections in 2018 and presidential election in 2020 are the events that could upend the applecart.”
Here are some highlights.
The bubble economy is set to burst, and US elections may well be the trigger
Central banks continue to focus on consumption inflation, not asset inflation, in their decisions. Their attitude has supported one bubble …read more