Hedge fund heavyweight, Kyle Bass, has been calling for an economic meltdown in Asia for several years and now believes Trump is just the accelerant needed to make China burn.
Amongst other things, he believes inflation will spike, causing the Germans to freak out and the ECB to taper. All the while, hard nosed policies by Trump, on China, will cause the smoldering fire that is China to burn, very heavily, bringing forth its utter and complete decimation.
All in all, Bass believes Trump’s policies will be a positive for America — but a net negative for the rest of th world. As for China: fucking doomed.
The great economic boom in China is an illusion.
Source: Bloomberg
If you enjoy the content at iBankCoin, please follow us on TwitterChina has “recklessly built a system that’s going to need to restructure and that just so happens to be metastasizing right when Trump becomes elected,” Bass told Bloomberg Television’s Erik Schatzker on Wednesday. “This is a fire that’s been smoldering and it’s now starting to burn, and Trump is just more gasoline.”
Imposing tariffs on Chinese imports could have “profound consequences” for the nation’s economy, where credit over the last 18 months has grown by $6.5 trillion while deposits expanded just $3 trillion, said Bass, 47, the founder of Dallas-based Hayman Capital Management. Early last year, Bass called for a 30 percent devaluation in the yuan against the dollar, and he’s since opened two Asia-focused funds to wager on the imbalances in the region, which he said could extend to Hong Kong and Taiwan.
“The idea that China is now the driving economic power in the world, I think, is illusory or somewhat of a fallacy,” he said. “It’s safe to say that the Asian theater is where we’ve been focused.”
In the U.S., Bass said, border tax adjustments will help finance a lower corporate tax rate that Trump has proposed, which in combination with the repatriation of capital offshore will be “extremely stimulative.” He said Trump’s accelerated policies would lead to real capital investment, competitiveness and an improvement in productivity.
The impact will be “positive for the United States and slightly negative for the rest of the world,” he said. “But it’s not the globalist nightmare, in my opinion.”
He have a time machine, don’t he.
Anyone have a link to a full transcript or video? Google fuckin censoring it or some SHIT.
Hang tight. I’ll get it.
smoot hawley
Now, please tell us, Why would a Hedge Fund manager be interested in seeing your demise?
Largemouth Bass? He has company in the swamp.
My take.. Putin was KGB, but that only matters with one thing.. Political Intelligence. Trump was set up years ago as a spy for the USA in the form of a “business man”. I am sure he gathered a shitload more intel then whatever the Chinese or Russians hacked. The guy has a way with people.. no doubt, and his favortism for the USA has got to mean he knows something. Yes the entire brown world is envious of the White World yes we all know this, and the real only player needed on our side is in the form of Russia, which of course has always been a huge wild card – a rebel rogue nation like the USA only much more incapable. The “presumed black swan event” is most surely China. It has been talked about for years and only God knows how they have been sweeping it under the rug. Bass, Chanos, all the major short siders – the toughest job in the business have been calling them out for at least 5 years. Europe was obvious because of their transparent retardation, however the Chinese have zero scrumples which makes them the main event. Time frame – Unknown – depends on their service sector, dumping on US bonds, trade problems, a decrease in their fake GDP numbers when “their Bernie Madoff” accountant comes to play. Assumption – The only growth they technically have had is a trade surplus thanks to the USA, perhaps around 2 trillion (most stuck in US treasuries). For God’s sake they have as many people in 2 USA’s and one Eurozone shoved in one tiny country. 2 Trillion is peanuts. USA/ Eurozone including Russia- = 50 Trillion (with the Eurozone all messed up even) GDP China – 11 Trillion.