debt off the government's balance sheet and to put her on the private sector to make the debt to g.d.p. ratio look healthier thus allowing the government to borrow more and of course this was a recipe for disaster it created moral hazard on an epic scale and guaranteed to collapse as it has collapsed and yes the entire structure this entire p.s.y. sector is collapsing will the bank of england bail them out probably and again this is why people kind of rush to bed coining gold because you can't prove either of those well whether or not the bank of england bailed somehow is one thing they obviously have not stepped in the company is liquidation its collapse many of the biggest banks in the united kingdom are owed money over two billion pounds we don't know we're going to you know obviously what what was the warren buffett called these derivatives he called it like a speed get a you never and you never find the end of it well here. it'll obviously be in bankruptcy for quite a while who have to figure out what what they actually own but one of the things that a lot of these companies do is they g

four times bigger but the but us economy is twelve times bigger so if you look at the gold to g.d.p. ratio which is how i measure it twice russia is twice as strong as the united states such as russia it's also i don't. think gold to g.d.p. in russia is double the united which is a source of strength say china is not there yet because their economy is much larger but they're acquiring gold why don't they are going to list a lot of trade failing there was you know hand-wringing about all those roubles dying is crashing but that they're out of a good. well they've allowed the river to trade pretty freely but they are doing it with a good central banker this is in the ninety's in the yeltsin when you know the ruble collapse they're actually much better central bank managements a day as a saver and much stronger go position but we talked earlier. in one of our interviews about russia and china and others working on it just to be legit technology basically a coin not decline but but some token some digital coin with every encryption cetera that they could use to make payments between among them

debt off the government's balance sheet and to put her on the private sector to make the debt to g.d.p. ratio look healthier thus allowing the government to borrow more and of course this was a recipe for disaster it created moral hazard on an epic scale and guaranteed to collapse as it has collapsed and yes the entire sutter this entire p.f. by sector is collapsing will the bank of england bail them out probably and again this is why people kind of rushed a bit coin in gold because you can't prove either of those well whether or not the bank of england bailed somehow is one thing they obviously have not stepped in the company is liquidation its collapse many of the biggest banks in the united kingdom are owed money over two billion pounds we don't know we're going to it's you know obviously what what was the warren buffett called these derivatives he called it like a speed getty you never and you never find the end of it well here. it'll obviously be in bankruptcy for quite a while who have to figure out what's what they actually own but one of the things that a lot of these companies do is

debt off the government's balance sheet and to put her on the private sector to make the debt to g.d.p. ratio look healthier thus allowing the government to borrow more and of course this was a recipe for disaster it created moral hazard on an epic scale and guaranteed to collapse as it has collapsed and yes the entire structure this entire p.f. by sector is collapsing will the bank of england bail them out probably and again this is why people kind of rush to bed coining gold because you can't prove either of those well whether or not the bank of england bailed somehow is one thing they obviously have not stepped in the company is liquidation its collapse many of the biggest banks in the united kingdom are owed money over two billion pounds we don't know we're going to you know obviously what what was the warren buffett called these derivatives he called it like a speed get a you never and you never find the end of it well here. it'll obviously be in bankruptcy for quite a while who have to figure out what's what they actually own but one of the things that a lot of these companies do is the

four times bigger but the but the us economy is twelve times bigger so if you look at the gold to g.d.p. ratio which is how i measure it twice russia is twice as strong as the united states such as russia it's also. gold to g.d.p. and russia is double the united which is a source of strength say china is not there yet because their economy is much larger but they're acquiring gold plated they got rid of a list a lot of trade failing there was you know hand-wringing about all the roubles dying is crashing but that they're out of a good. well they they've allowed the river to trade pretty freely but they are doing it with a good central banker this is in the ninety's is in the yeltsin when you know the ruble collapse they're actually much better central bank management today as a saver and much stronger go position but we talked earlier. in one of our interviews about russia and china and others working on it just to be legit technology basically a coin not decline but but some token some digital coin with every encryption cetera that they could use to make payments between among themselves so a

four times bigger but the but us economy is twelve times bigger so if you look at the gold to g.d.p. ratio which is how i measure it twice russia is twice as strong as the united states such as russia it's also i don't. think gold to g.d.p. in russia is double the nonstop all which is a source of strength say china is not there yet because their economy is much larger but they're acquiring gold why don't they are going to list a lot of trade failing there was you know hand-wringing about all those roubles dying is crashing but that's out of a good. well they they've allowed the will to trade pretty freely but they are doing it with a good central banker this isn't the ninety's this isn't yeltsin when you know the ruble collapse they're actually much better central bank management today as a saver and much stronger go position but we talked earlier. in one of our interviews about russia and china and others working on it just to be legit acknowledged basically a coin not decline but but some token some digital coin with every encryption sutta that they could use to make payments between amo

space, countries like indonesia and mexico who have done well, who have a solid debt to g.d.p. ratios and a very solid political environment and so forth. we prefer a more selective approach. in the corporate portfolio, you can buy the indexes, but if you want to go for the higher yields, you have to take foreign exchange risk. so you have to go into local currency, because in hard currency, as i just said, the year pick up is not that impressive. mark: christian, thanks for joining us today. head of global assets at deutsche asset management. vonnie: our thanks on this side of the pond as well. bank of canada deputy governor is speaking right now. the central bank raised rates today morales as expected. she says hiking rates too slowly would risk a build-up of inflation. you want to tune in later because we are speaking in with a governor, joining bloomberg at 4:30 p.m. eastern, 9:30 p.m. london time. this is bloomberg. oomberg. vonnie: from new york, i am vonnie quinn. mark: and live from london, i am mark barton with european close six or seven minutes away. the property market may

is that a prudent thing to do when the debt to g.d.p. ratio highs except for post-war periods? is it a prudent thing to do when we're already assuming a very, very strong economy with unemployment at 4%? i think not. david: let me talk about complacency. back in the late 1990's, and again in 2006, you said the only thing we have to fear is the lack of fear itself. and i want to remind you of something you said at davos in 2017, 2007, you said it's worth remembering that markets were very upbeat in the early summer of 1914. so as you look at the horizon right now globally, where are we? do you see any indication that we may be heading into one of those sorts of situations? >> look, i'm an economist, not a geo politician. but it seems to me you have to look around and think that this is as continuous a year geopolitically as we've had since the berlin wall fell. you look at what's happening on the korean peninsula. you look at the degree of tumult and change in iran and the u.s. looking like it might back out of the frame work that it has with i

g.d.p. in the history of the us economy. have streams in both directions. you will not find critics saying no attention to the schiller pe ratioh.ngs are too >> let's think about some of the other objections. say is marginsey and earnings are structurally than they wereys in the past for various reasons. aybe technology and the interalisation of us companies. what should that, therefore, stocks are less expensive. >> you know, as with all of the arguments. there's an achilles hill to each and every one of these arguments. hill on the structurally higher profits is fine. structurally y be higher. but if those structurally higher profits persist into the future. the schiller pe ratio comes down modestly in the next few years. it's high. 32. ead of being it may be 28 or 29. high.rry, 28 or 29 is or that would point to two 3% returns. still very low real returns. little better than bonds. not the kind of returns that people want to expect on the market. >> that leads into another comment point that people make. at how low interest rates are. argument. the >> valuations will be lower. we are not overpaying. that.is the problem with

g.d.p. during and after the recession, was projected before the tax cut to rise from 78% to this year to 91% over the coming decade. the c.b.o. now expects the tax ange to send this ratio to 97.5%. you know, if we're going to use c.b.o. statistics, let's use c.b.o. statistics. and this is -- it's like we handed a credit card and at the same time we handed a credit card with debt on it to the next generation. we're failing to fix over 50,000 bridges. that's another way to hand debt and deficit on. i know the administration's looking at an infrastructure plan that could in fact be adopted here. it's not going to be robust enough. right now if you look at the corps of engineers. e corps of engineers has a queue of projects. if they don't take another dime, it would take another 17 years in current dollars to finish those projects. we now made a choice, we made an economic choice and we made an economic gamble, but let's not pretend we haven't taken a risk here, that this is all rosy. if we -- do not pretend we are being fiscally responsible every day we're here. i am going to leave it at that. i want to talk about something that hits people every day and that's the insecu