‘What you need to look at is debt to liquidity, because liquidity is used to roll over debt (debt is never paid back. Debt is only rolled). You need balance sheet capacity to refinance your debt. If the debt liquidity ratio is too high you get a financial crisis. If it’s too low you may get an asset bubble.' Japan got this during Abenomics, they monetized and printed money and the debt liquidity level came down. China is now printing lots of Yuan to bring down their debt to liquidity ratio. He said.