KYLE BASS: 'You Have To Be Sh---ing Me' Japan's Adding A Ponzi Scheme To A Ponzi Scheme

youtubeKyle Bass is on his favourite topic here at the Sohn Investment Conference — Japan.

His bottom line is that the country’s “shock and awe” monetary policy is over, and Japanese leaders are beginning to realise that.

“What they’re doing represents 70% of what the Fed is doing here with an economy 1/3 the size of ours,” said Bass.

The question is when, and that moves to “qualitative aspects,” he added. What does that mean? 

There’s a fatalism, he says, in everyone he talks to in Japan. They’re thinking is changing, and the way they talk to him about debt is changing. They already spend 50% of tax revenue on debt service.

“If rates go up it’s game over.”

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