From 2009 to 2012, the US entered an era of “ beautiful deleveraging ,” a Morgan Stanley report recently noted, citing “a respected client” who coined the phrase. The concept was a key point of Bridgewater’s Ray Dalio and his debt cycle analysis. Now fast forward to China, where economic central planners are hoping the Asian powerhouse can engineer a similar feat as its leveraged economy. Doing so might require low global interest rates, which could be one reason China has significantly ramped up is purchases of US Treasuries. The moves come as China's debt was recently downgraded amid concerns over leverage.
[dalio]
Setup a free account to get access to this article (no credit card required).
Login required to continue reading.
