David Goldman: We're Very Close to Global Recession

The video discusses the economic challenges and strategies of China, focusing on the rebalancing of corporate liabilities due to RMB fluctuations, the impact of declining global trade on potential recession, and China's transition from an old to a new economy. It highlights the slowing credit growth and financial risks, emphasizing the Chinese authorities' focus on maintaining high real rates to enforce reforms. The discussion also covers the political implications of financial risks and the importance of managing unemployment while stabilizing economic growth.

What was a significant factor in the rebalancing of Chinese companies' liabilities?

• Increase in RMB value

• Fluctuation of the RMB

• Stable dollar debts

• Growth in foreign exchange reserves

What is the main challenge for China in transitioning to a high-tech economy?

• Decline in world trade

• Increase in RMB value

• Stable export sector

• High unemployment rates

What is a common misconception about China's economic situation?

• China is experiencing rapid growth

• China is facing a financial crisis

• China's labor market is stable

• China's export sector is thriving

Why do Chinese authorities want to maintain high real rates?

• To increase unemployment

• To boost old industries

• To encourage financial risks

• To force reforms in old industries

What is the political risk associated with financial risk in China?

• High unemployment in all regions

• Liability of the state to itself

• Rapid economic growth

• Stable credit growth