Russell Napier: Deflation In A Fiat World
US budget deficits will continue until the bond market revolts
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Jim welcomes back Russell Napier, consultant with CLSA Asia-Pacific Markets. Russell sees bank credit contracting, and a dearth of borrowers globally. He also notes a weakening in money-supply growth among the emerging market countries, and money exiting China as labor costs rise dramatically. Russell believes the days of China funding the US budget deficits are over, and that the environment of "financial repression" will last for decades.
Russell Napier is a consultant with CLSA Asia-Pacific Markets writing on issues affecting global equity markets. After studying law, he began his investment career sixteen years ago at Baillie Gifford in Edinburgh managing funds in the Japanese then the US and finally the Asian markets. Moving to Foreign & Colonial Emerging Markets in London he was responsible for managing Asian portfolios. In May 1995, Russell relocated to Hong Kong to become Asian equity strategist for CLSA, a leading Asian equity brokerage. He occupied that position in a full time capacity until 1999 and was ranked number one for Asian strategy in all major industry polls including Institutional Investor from 1997-1999. Since 1999, apart from fulfilling a consultancy roll for CLSA, Russell has created and established a new course called A Practical History of the Financial Markets which is taught through Edinburgh Business School.