Sorry, this has the macro and money completely backwards — as does most of Pettis’s stuff.

I've read this three times and still have no idea what it means. Bet Wolf doesn't either.

'Increased investment will always be accompanied by increased saving, but it can never be preceded by it. Dishoarding and credit expansion provides not an alternative to increased saving, but a necessary preparation for it. It is the parent, not the twin, of increased saving.'

'investment financed by savings' - loanable funds fallacy discredited by Keynes nearly a century ago and inconsistent w endogenous money

Selection bias is a hell of a drug.

Foreboding quote from a previous piece:

“Why would Trump want to cut off the rest of the world until they end their trade deficits with the United States, as well as cut off foreign aid, but be okay with Jay Powell and the Federal Reserve lending trillions of dollars to foreign central banks?”

Tie it ALL together.

This being destroy the best of America.