Chris Wood: “The US will be the endgame”

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In this video interview, Chris Wood, CLSA’s Asia strategist and author of the top “Greed & Fear” newsletter, shares his views on global markets with CNBC.

Wood said: “My view is that there is an inevitable endgame as a result of all this massive spending of taxpayer money in the West and Japan to bail out bankrupt banking systems, so in my view unfortunately the end game will be systemic government debt crisis in the western world.

“It will probably happen in Europe and will climax in the US, and I am expecting on a five year view the collapse of the US Dollar paper standard … The key reason why that is the endgame is that this credit crisis we saw in the west in 2008 and 2009 has simply been deferred, because 95% of the so-called government policy solutions to deal with this crisis have simply been to extend government guarantees.

“So the problem has been transferred from the private sector to the public sector. It is just a matter of time before investors revolt against these sovereign guarantees … The crisis is going to happen first in Europe. The US will be the endgame.” (Hat tip for transcript: Zero Hedge.)

Source: CNBC, March 1, 2010.

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6 comments to Chris Wood: “The US will be the endgame”

  • ShortBus

    It is a pity the idiots at CNBC kept interrupting him, and clearly did not believe a word he was saying, despite asking questions that made them seem interested in his opinion.

    Then just as the end, you could hear Michelle saying WOWWWWWWW, all surprised like. hmmmm.

  • Woods is a brilliant, insightful and incisive guy who was vastly prescient about the weapons of financial destruction. He was and is so good because he’s done his deep homework and understands the tools and behaviors thoroughly. But I’m sad to say he’s also stove-piping here by pontificating outside his expertise without investing the time to investigate the actual mechanics, components or dynamics. Debt being incurred to stave off the recession saved us from worse but also pays itself back as growth returns thru increased revenue collection. The remaining debt was inherited not from stimulus but from tax cuts, medicare unfunded authorizations and two wars but is nonetheless manageable in the intermediate term, though uncomfortably. In the long-run the biggest sources of debt are mandatory entitlement programs like SocSecur and medical costs. NOT discretionary spending. These problems are in fact fixable by a mix of bending the cost curve, matching entitlement eligibilities to the old demographics, modest tax increases (back to the level in the 90s) and, the biggest potential windfall, tax expenditures, i.e. exemptions. Which at $1T are larger than SocSecur and about 2X larger than Medicare and are growing at 3-4X inflation. I’m sorry to say Woods has it flat wrong in this particular case thru not doing his homework.
    If you’d like to see a bit of homework for yourself the tail of this piece:
    Skirting the Abyss: From Economic Downturn to Financial Crisis to Long-term Malaise
    puts it in the context of the economy, the financial crisis and l.t. secular growth problems created by excess PRIVATE debt and decades of under-investment.

  • NCShadow

    Amazing how rude they were to continually interrupt him, like children who ask a question but don’t have the attention span or intellect to absorb more than a yes or no answer. And this is supposed to be news??

  • Paul Sandison

    Where did free speech go? Discourse? Dialog?

    They didn’t want to hear him out, did they? Once again an orchestrated effort by the Ayatollahs of CBNC to sabotage a message they didn’t want to hear, i.e. he feels the US currency is not going to be uberalles forever more. This kind of ultranationalism they are trying to display to please their masters is going a long way to stifling truth and constructive discussion and will eventually destroy the US.

    Incisive questions are one thing – orchestrated rude interruption quite another. If they don’t know the difference they should not be in those jobs. This behaviour is a leading indicator of where the US is headed if its major news outlet is staffed by such undemocratic riff-raff.

    Then on the personal level look at the upbringing they have must have had. These young verbal thugs simply have no manners. They should have been taken off the set and whipped for 3 reasons
    1 interrupting a guest
    2 humiliating a guest
    3 subjecting him to a cross-examination, not an interview.

  • Superstar

    Don’t you wish those stupid talking heads at CNBC would shut up so we could hear what the interviewee was saying and let him complete his thoughts.

    The ultimate in rudeness

  • Marx Brother's - Obama et al

    Anyone who knows anything about Wood should be greatly concerned unlike the camera monkeys on CNBC. However, he is not alone in this assessment. A few years ago, statements like these were reserved for cave dwellers, but when Marc Faber, Jim Rogers, Chris Woods and others begin to openly state such things, it does cause one to pause and think. Don’t forget Marc Faber’s statement on Tech Ticker on January 10, 2010: “We are doomed, we are all doomed.”

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