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EssentialThe Essential Conversation

How the End of the Asset Bubble Era Will Lead to a New State Capitalism

Featuring Viktor Shvets and Alfonso Peccatiello

Feb 14, 2022 • 43 minutes

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Essential

The Essential Conversation

How the End of the Asset Bubble Era Will Lead to a New State Capitalism

As disinflationary pressures mount, will we sacrifice freedom for prosperity?

Featuring Viktor Shvets and Alfonso Peccatiello

Feb 14, 2022 • 43 minutes

Inflation is the phenomenon right now, however you believe it comes about. Looking beyond present obsessions to the long term is Viktor Shvets, head of Global and Asia-Pacific Strategy at Macquarie Capital and author of "The Great Rupture: Three Empires, Four Turning Points, and the Future of Humanity." Shvets joins Alfonso Peccatiello, author of The Macro Compass newsletter, to talk about the bridge we’re crossing from an era defined by liberal capitalism but marked with multiple asset bubbles to a model driven by government. Fiscal policy emerged as a primary economic driver during the COVID-19 pandemic. Within a decade or so, posits Shvets, the state rather than the private sector could command capital allocation. Shvets contends that public debt is irrelevant, as it will never be paid off. And, because the west faces gathering disinflationary forces, political leaders will gravitate toward China-style state capitalism. The key to understanding Shvets’ analysis is the concept of the “R-star,” or the natural rate of interest. He raises a compelling question: Must we be free to be prosperous? Recorded on February 10, 2022. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

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The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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