Emerging Asset Management Co Analyst: US Default Is Inevitable

Beijing time on the morning of July 14th, according to foreign reports, Mullin, chief investment officer of Emergent Asset Management (David Murrin), said the United States, Asset Debt default It is not the question of "will" but "when" breach of contract.

Mullin told CNBC that the US default is inevitable, and that an empire of excessive expansion will inevitably go to this stage and its fiscal system will collapse. The question is whether the United States is forced to default on external pressure (possibly from China) or to default on its favourable conditions.

The US Democratic Party and the Democratic Party are at an impasse on the budget deficit negotiations and whether or not we should raise the debt ceiling of US $14 trillion and 300 billion. The two parties must reach agreement before August 2nd, otherwise the United States will be in a state of technical default.

In his book Breaking the Code of History, Mullin said that the balance of international power has shifted from the Western led by the superpower to the Orient led by China. He believes that the United States does not have the strength to compete with the rising East: "the reason is very simple. The financial system of the United States is declining. In the past more than 10 years, there has been little progress except financial engineering and leveraging, and the high leverage of financial institutions has finally led to the debt crisis of 2008."

And Mature economies In contrast, Mullin believes that emerging markets have obvious advantages in demography, work motivation, and economic growth base kinetic energy. This imbalance will inevitably lead to default in developed countries: "the only analogy is Britain. As a former world empire, Britain lost its dominant power in the Suez Canal Crisis in 1956, that is, it bears huge debts, while the United States is its largest creditor, thus forming the power superiority of the United States to Britain, and the international status of the pound has ended. Nevertheless, the values of Britain and the United States are very similar to global geopolitics, and the transfer of power has not changed much. "

Mullin called the United States the last Christian of the Western Empire: "with the rise and challenge of China, who are you going to pass on to your values? No one will accept your preaching. So the United States will be forced to continue to expand spending until it can not be sustained one day. We Europeans try to rebuild the empire through regionalization process, and European integration is doomed to failure. The situation in the United States is very difficult. "

Mullin believes that the real disaster is that the United States refuses to recognize the collapse of the power building, which only speeds up the loss of power and creates a greater vacuum. China will quickly fill the vacuum and form a potential conflict with the United States.

Unstable in the current environment Investor Mullin's proposal is "probably not hold assets denominated in US dollars". (