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.”