Kyle Bass came out again talking down China's situation. He makes a convincing argument. But is he CIA? or affiliate thereof? I have had my suspicions.
The theory on the other side is as follows
America’s policy of living beyond its means now requires more than just recycled trade flows: inward portfolio flows are required as well. Global portfolios, comprised of commercial cash balances as well as investment money, periodically increase their exposure to other regions, potentially leaving America short. The problem is resolved by destabilising the region that has most recently benefited from capital investment, to encourage money to return to dollars and thus America’s domestic markets. Now that she is due to escalate infrastructure spending both in China and along the new silk roads, it is China’s turn.
The argument is made elsewhere in the article that this is what was behind Eastern European chaos and the Asian crisis of 1998.
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