Andy Xie: Europe’s is a money distribution problem

Europe has an enormous productive capacity, Greece included. Debt introduces a money distribution problem that becomes a flashpoint during periods of economic weakness because the inability of large debtors to pay imperils both the debtor, the creditor and everyone whose income is derived from those sources. If the debtors are large enough as in the sovereign debt crisis in the euro zone, you get a systemic crisis that often leads to depression.

The European sovereign debt crisis is all about apportioning losses between debtors, creditors, and taxpayers from debts that simply cannot be repaid in real terms

Andy Xie Recommends China Diversify Out Of Treasuries

The Chinese foreign reserve accumulation is really about the exchange rate peg. As long as the Yuan’s dollar peg remains near present levels, the current account imbalance will result in an accumulation of dollar reserves. Former Morgan Stanley Economist Andy Xie says the Chinesse do have a choice as to what US dollar assets to buy, even so. He suggests the US diversify out of Treasuries and into other US dollar assets

Xie and Roach: China Should Worry About Inflation

On the back of 10+% growth in 2010, it is now apparent that China has a burgeoning inflation problem. A whole confluence of factors may come into play here. A labour shortage in China, food price inflation, and out of control money supply growth all are impinging on consumer prices. It should be noted that

Jim Chanos makes the bearish case on China

Fortune recently did a story on Jim Chanos called "Chanos vs. China" which warrants reading.  Below is the associated video in which you can hear Chanos making the bearish case for China. Chanos is the most unapologetic and aggressive of the well-known bears about his case. For example, Andy Xie seems to have backpedalled somewhat

Andy Xie is much less bearish on Chinese housing market

Recently I pointed to some comments by Andy Xie which indicated he was taking a less apocalyptic stance toward the Chinese property market. It was difficult to discern how much of a climb down this was for the China bear. But, judging from an article just published in Bloomberg, Xie has not recanted entirely; he

Xie: China’s housing market is “not crashing like I expected”

I don’t know exactly what to make of Andy Xie’s quote near the end of this first CNBC video below. He says "It’s not crashing like I expected in 2012," referring to the Chinese housing market. Is Xie saying: A. The crash is not going to happen yet. Wait until 2012. Or is he saying

Xie Says West’s Stimulus Stoking Emerging Market Inflation

Here’s Andy Xie spinning his inflation tale of woe. He thinks western stimulus is not creating demand or inflation in the west but stoking inflation in emerging markets, causing them to overheat. Take a look. I have made a similar argument about emerging market asset bubbles in the 1990s. For Greenspan, the Fed cannot stop

Andy Xie: Our Market Is A Poor Man’s Casino

A bartender at my neighborhood pub recently asked me how the Shanghai stock market was performing. I said it was at about 2,600 points. He jumped and said, “No! The Communist Party wouldn’t let that happen.” He spent the next 10 minutes trying to convince me that the Communist Party would make the market rise

Andy Xie: Chinese monetary policy has to be tightened

Xie believes the Chinese economy is in no near-term threat. But he does see problems down the line because of a property bubble. He recommends even more monetary tightening to reduce the ill effects of this bubble. Xie comments on the U.S. and on Europe as well. The video of his comments runs just under

The Chinese bubble economy

The well-regarded and surprisingly independent Beijing-based media outlet Caijing is no more. The site is up, but the content is frozen in time, nothing having been written since early November. Happily, Caijing editor Hu Shuli has now re-appeared with Caing. And Caing has started things off where Caijing left off, drawing attention to the bubble

Andy Xie on China, money and asset bubbles

I mentioned comments by former Morgan Stanley economist Andy Xie on reckless monetary policy earlier today. Below are interviews Xie gave with the Financial Times in Shanghai back in September which give a more comprehensive look at his views on China, debt bubbles, trade, the U.S., monetary policy and more (Hat tip Prieur du Plessis).

Andy Xie: “Whole world is drinking poison to quench the thirst”

Andy Xie believes ultra-low interest rates in the U.S. and elsewhere are fuelling an asset price bubble which will pop dramatically in 2012.  In his view, the policies of the world’s central banks are reckless and will lead to worse down the road. Bloomberg quotes him as follows: “There is a Chinese saying that one