Kyle Bass has become a billionaire. That rich status isn’t something he came by accidentally, either; the man understands finances and economic growth/decline. But it almost seems as though his understanding of this cycle comes from a perspective which has a kind of amoral scope. Consider that Kyle Bass is closely tied with Cristina Fernandez de Kirchner. In Argentina, there have been two economic defaults in the space of merely thirteen years. De Kirchner was responsible for both of them. But does Kyle Bass criticize her financial policy? That he does not do. De Kirchner is despised as a socialist despot. How can a financier in America not criticize a socialist despot? Well, it turns out Bass is originally an Argentine and runs his hedge fund, Hayman Capital Management, out of Austin, Texas; a very leftist, socialist-leaning town. Is it possible Kyle Bass operates professionally from a socialist paradigm of economic theory?
Consider Bass’ recent remarks in an April interview to be featured by FOX. Bass said there was a forty to fifty percent chance America’s economy would see a decline by the end of 2016. The reason? China’s ever-expanding credit bubble and the prospect of its imminent collapse. Bass believes this collapse will happen in the next two to three years, but he’s not sure when. So why would he give a percentage chance which is less than binary to a national news outlet? It seems like socialist economic theory at play. Kyle Bass knows such talk may spook savvy investors who otherwise would have brought their funds to the Chinese economy into curtailing investiture until Bass’ supposed currency devaluation takes place. In effect, Bass is forcing China closer to the edge of economic implosion by keeping necessary maintaining assets from being sent in as reinforcement.
Bass himself has admitted that when the Chinese economy is forced into a currency devaluation, the result will likely take 20% right out of the US economy. Though his billion is tied up in a bet that the US Dollar will supersede Chinese currency, this will be at the expense of America’s economy. Thankfully it’s August, 2016, and as yet the credit bubble has not imploded.