He was right about subprime, right about gold, and early in his call for a Japanese crisis. Is Texan investor Kyle Bass too early in his call for a China banking crisis and currency devaluation within the next two years?
“It’s a foregone conclusion but we don’t know about the timing; it feels like it’s happening as we speak,” he told Grant Williams of RealVisionTV in an interview. Bass had first stated his pessimistic view of China in late 2015 when the currency was under pressure and the country was bleeding capital to the tune of $100 billion per month.
Since February of this year and the so-called Shanghai Accord or the G20 finance ministers, outflows have abated, although the currency has declined to a multiyear low of 6.66 per U.S. dollar.
