00:00How we define U.S. exceptionalism, you can define by reference to financial markets or more broadly as to what allows the U.S. to perform well in the financial markets.
00:09I think there are five factors that go into U.S. exceptionalism.
00:12The first is the breadth and depth of the capital markets, which is very significant.
00:16I would say U.S. exceptionalism in capital markets remains where it is today.
00:2065% of equity is U.S. dollar denominated stocks.
00:24You've got 60% foreign currency debt is U.S. dollar denominated.
00:28And then forex flows, 80%.
00:30So a lot of it is driven also by capital markets as well.
00:34So that's one level to look at.
00:36The second is innovation.
00:37U.S. exceptionalism also thrives on the back of innovation, and that's science.
00:41That's the universities they have.
00:42That's the ability to attract talent to come in, all of which right now may be under a little bit of stress, no doubt.
00:48The third is U.S. military power, which gives them that sort of hegemonic ability to push itself beyond its boundaries.
00:55The fourth, I would say, is institutions in U.S. and the rule of law, which also is coming under a little bit of stress right now.
01:01And the fifth, of course, is a reserve currency, which now accounts for 58% of central bank reserves and is used for transactional flows almost everywhere.
01:08So when you look at these five factors, U.S. exceptionalism for the time being doesn't look as though it's going to be at risk.
01:16But for all of these five factors, you do have things that could cause a little bit of fraying, and that could cause U.S. exceptionalism to be at risk if you think over the longer term.
01:27You've got two countries looking at this primarily.
01:29You've got the U.S. and you've got China.
01:30The race is not over yet.
01:34In compute power, the U.S. is ahead.
01:37In energy, China is ahead.
01:39In product services application layer, the U.S. is ahead.
01:42In adoption, China is ahead.
01:44So where this turns out is a big question for all of us.
01:47In points.
01:48In price.
01:48Inê³µ.
01:48In imperative service.
01:49Yeah.
01:49So where are you?
01:50So where are you going?
01:52You were going to 무엇 for instruction in which you are eigentlich with proper credits in that area.
01:53In whatever point in this area and the majority of the planet is going to be at risk in terms of what you do.
01:56So where do you think it's going to happen?
01:57Well, let's step away.
01:58That make it closing in.
02:12Then you're going to be in depth within a minute or something.
Be the first to comment