Michael Pettis at China Financial Markets taught me much of what I know about global trade. I am very appreciative. I tend to agree with most of his views.
I recommended his book “Great Rebalancing“, and still do.
In a recent email, however, Pettis revives the “Global Savings Glut” thesis and I strongly disagree. This is a somewhat lengthy discussion, but an extremely important one.
“Income Inequality” is a front-page topic so let’s take a close look. Continue reading