I am traveling for business this week, but I’ll return with a fresh interview for Global Macro Update next Friday. For those of you who missed my interview with Louis Gave last week, read on… There’s a reason this was one of our most-watched Global Macro Update interviews of the year.
Louis, of course, is the CEO of Gavekal Research and a longtime friend of Mauldin Economics. Many of you know him from our Strategic Investment Conference.
When I asked Louis if US government debt was finally starting to matter, he called it “undeniably the most important question right now.”
During our interview, Louis framed the debt discussion in ways few people consider. To start, he highlighted that the US makes roughly 40% of the world’s budget deficit, which you can see in the chart below. But to “keep the show on the road,” as he said, roughly two-thirds of the world’s savings needs to float to the US every year. Otherwise, we’re going to have problems.
