Eminent Speaker: Russell Napier on Chinese reflation and the new world monetary order: Impacts on asset prices

Tuesday 14 May 2024 | 18:30 - 20:30 | Evening Event

The current global monetary system was established in 1994 when China moved to manage its exchange rate. The consequence was that the developed world discount rate and growth rate decoupled, gearing and asset valuations were structurally distorted. 

Today, China’s debt deflation has forced the country to move to a flexible exchange rate to inflate away its debts. It’s time to consider what the rules of the new monetary system will be, and which distortions to asset markets now need to be unwound.

Russell Napier looks at the consequences from this change to the global monetary system for investors and:

• How the global monetary system plays a key role in determining asset returns.
• How the debt deflation in China leads to structural change not cyclical change.
• How changes in China force developed world governments into financial repression and investors need to consider 1945-1979 as a guide to likely future returns from assets.

After an informative discussion, join your fellow colleagues for drinks and nibbles. 

Timings

Speaker

Russell Napier

Professor Russell Napier, FSIP, is Author of The Solid Ground investment report for institutional investors and Co-Founder of the Investment Research Portal ERIC- a business he now co-owns with DC Thomson.  

Russell has worked in the investment business for over 35 years and has been advising global institutional investors on asset allocation since 1995. Russell is author of the book Anatomy of The Bear: Lessons From Wall Street’s Four Great Bottoms (‘a cult classic’ according to the FT) and is founder and course director of The Practical History of Financial Markets at The Edinburgh Business School.

In 2014, Russell founded the charitable venture The Library of Mistakes a business and financial history library in Edinburgh that now has branches in India and Switzerland. The Library of Mistakes hosts lectures which are live streamed and recorded and a podcast series was launched in 2022.

Russell has degrees in law from Queen’s University Belfast and Magdalene College Cambridge. He is a Fellow of The CFA Society of the UK and is an Honorary Professor at The University of Stirling and a Visiting Professor at Heriot-Watt University.