Kyle Bass is a gambler, but then that’s nothing new on Wall Street. The thing is, Bass makes some pretty underhanded bets. Firstly, the man runs a hedge fund out of Austin, Texas. That’s enough information for some financiers to turn the page! Austin has an exceptionally leftist, socialist atmosphere, and hedge-funds are nicknamed vulture funds because they often prey off the losses of big companies. Kyle Bass does this with his investments, and he’s such a clever underhanded financier that he’s managed to expand his repertoire of short-sell shenanigans.
Consider CAD, the Coalition for Affordable Drugs UsefulStooges.com has reported on in the past, which uses petitions, lawsuits, public sympathy, and chutzpah to force big-ticket pharmaceuticals into cutting prices. The net result is a stock-drop on Wall Street. When this hits, Bass short-sells his holdings and makes millions. Meanwhile, the infirm lose additional cures, as the big-ticket pharmaceuticals making their money can no longer afford Research and Development costs, curtailing breakthroughs that may have been weeks away.
Kyle Bass also has ties with Cristina Fernandez de Kirchner, a socialist despot presiding over Argentina who has double-defaulted that country in just thirteen years. Bass always supports her financial decisions, even when they’re bad enough to bankrupt a nation. With these things in mind, Bass’ recent statements about China’s upcoming currency devaluation should be taken with a grain of salt. Bass has been predicting against China since 2015, and has billions tied up in his current gamble. It’s basically the same scenario as America’s 2008 financial crisis, only not so dire. Bass doesn’t see a “Lehman Brothers” moment for China, he says there won’t be any “Armageddon”. He does point to the freezing bond market, which is worth three trillion.
He’s said the Chinese credit bubble will collapse within the next three years, and put forty to fifty percent odds on that collapse happening this year. He’s betting American currency will increase in value–and he may be right. But if China’s economy collapses, forcing a currency devaluation, that will diminish the US economy 20%. Well American currency rise in value beyond 20%? Unlikely. So when Bass gets on the media pushing his rhetoric about Chinese implosion, he’s frightening investors away from Chinese investiture, and helping to make his bet a self-fulfilling prophecy.