The three countries with deep vulnerabilities in their bond markets—the UK, France, and the United States—are those that depend disproportionately on foreign ownership of their debt, a condition far more predictive of crisis risk than debt-to-GDP ratios because debt-to-GDP compares a stock to a flow and misses the key vulnerability of whether domestic savings are sufficient to fund government.
causalpending
Speaker
Louis GaveEvidence Quote
“What always matters is the percentage of bonds owned by foreigners. This is a guide of whether domestic savings are enough to essentially keep governments going along.”
Source
The Bull Case for China: The Best Opportunity Right Now? | Louis Gave— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:22:54 PM
My Notes
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