Kyle Bass, founder of Hayman Capital and one of the few to benefit from the 2008 mortgage crisis, warns of the concerning military capabilities of China and argues that American investors played a role in building their war machine. He points out that China now has more naval ships than the U.S. Navy and believes that China is preparing for war. He mentions the building of air raid shelters and a combat hospital, as well as incentivizing the population to donate blood. Bass also raises concerns about China’s selling of US treasuries, suggesting that the move is aimed at insulating themselves from potential US sanctions.
Bass criticizes the Federal Reserve’s approach to inflation, stating that it fails to address the underlying price level. discusses the economic outlook, stating that bank lending has decreased and predicts a looming recession. He predicts wage inflation and stagflation, which would impact everyday Americans. Bass highlights historical events where inflation led to increased societal friction, crime rates, and mental health issues. He suggests that the poor and middle class are disproportionately affected by inflation, widening the wealth gap. He discusses the potential impact of inflation on commercial real estate in the U.S., the economic relationship between the U.S. and China driven by Wall Street greed, and potential risks for U.S. businesses and investors with exposure to China. Bass also discusses the investment landscape in China, the increased probability of China invading Taiwan, and the importance of understanding China’s intentions through accurate translation. He emphasizes the need for the U.S. to take the threat of China seriously and adopt a stronger approach. Bass advocates for stronger Democrats to prioritize national interests over social issues and suggests the establishment of a dedicated economic war department to counter China’s economic moves. He concludes by urging the identification of China as the enemy to adequately defend the values and morals of the country.
