In this special episode, we sat down with former congressman and dean of Liberty University’s business school Dave Brat. He sheds light on what the U.S. midterms mean in terms of China and the economy going forward.
Brat said: “I see huge change. China right now—the Evergrande real estate story, there’s ghost cities, they’re tearing down apartment buildings. On the investment front, it’s easy when you start poor, right? The rate of growth, if you go from $1 to $2, it’s 100 percent growth, right? So the growth rate’s tremendous. But then after you build so many bullet trains and do so many apartment buildings and infrastructure, then it gets harder. Where does your next dollar go? And that’s where they’re at right now. They are stuck. And they have a 40 percent savings rate. So they can make a lot of errors in where they put those dollars, but it’s not looking good right now. And so on the investment front, they’ve got trouble. They have bubbles all over the place.”…