Hugh Hendry, Part 3 of 8, "Do you really think the Americans can sustain a 6% savings rate?"; "I think they could have a 12% savings rate."
In this segment, Hendry shares his view that the American savings rate, which could rise to 12% from a current 6% of GDP, can replace China as the buyer of US treasuries.
China will continue to buy US Treasurys, as a way of ensuring their currency is stable, and the fact that the yuan is not freed from the dollar is creating strains on the European and Japanese economies, he said.
"The Chinese are not diversifying the reserves. They cannot diversify, because were they not buying Treasurys…if they weren't buying dollars, their currency would rise."
Hugh Hendry, Part 4 of 8, A discussion about gold.
Gold is a very good safe haven but, like any other asset classes, only when it's a contentious area, Hendry said.
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"I made for my funds 50 percent investing in gold back in 2003" but gold is now a crowded trade, he added. "It doesn't provide any kind of safe harbour for me right now so I'm not there," Hendry said.
Hugh Hendry, Part 5 of 8, iPhones and debt deflation.
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