Why Demand For Saving Deposits Has Weakened Since The Great Recession? Because risk aversion is declining, like money demand, even if interest rates are rising. This explains in part the rise of the US stock market.
Bond Returns Will accumulated savings during the pandemic push U.S. Treasury yields lower? Image: Financial Times
Demographics and U.S. 10-year Treasury Yield The trend in global savings has turned. The chart suggests that the dis-saving phase is likely to be inflationary. Image: Gavekal, Macrobond
Why We Should Not Be Afraid By China’s Debt? In China, there is a high level of savings and controls on capital outflows. Currently, most of the Chinese savings are lent or invested in China. So, China’s debt reflects the Chinese savings rate. It would be much more worrying if China’s debt led to external debt,…