KYLE BASS: China is already out of money

[covertbriar]

Texan hedge fund manager J. Kyle Bass, the founder of Dallas-based Hayman Capital, sent out a big letter to investors explaining why he thinks China has a problem much larger than the 2008 subprime crisis.

China has been burning through cash of late as it manages the devaluation of its currency, and there is a big debate over exactly how much money it has to burn.

Bass notes that many folks look at the foreign exchange (FX) reserves of $3.2 trillion and think that China will be just fine.

It’s really not enough, though, according to Bass’ calculations. According to Bass, the country is out of money today. In other words, China no longer has enough liquid reserves.

The letter said:

Responses we receive when discussing the FX reserve levels of China are filled with reverence: ‘No country in the world has ever achieved $4 trillion in FX reserves by running such enormous trade surpluses with the rest of the world.’ While true, this analysis fails to frame the proper context of the larger situation. When a host country has a large industrial base, enormous money supply (M2), and large import/export business, there is a certain amount of liquid reserves that are required to run the day-to-day operations of the country (think working capital). Over the years, the IMF has fine-tuned the formula used to calculate this ‘reserve-adequacy’ metric. It can be best calculated as follows:

Minimum FX Reserves = 10% of Exports + 30% of Short-term FX Debt + 10% of M2 + 15% of Other Liabilities


Bass is among a handful of hedge fund managers betting against China’s currency, the yuan. Much of Hayman Capital’s fund right now is devoted to the yuan short.

 

[tanwahtiu]

Lies are all angmohs are good at and talk down at Chinese... Go bet bankrupt US currency.

Texan hedge fund manager J. Kyle Bass, the founder of Dallas-based Hayman Capital, sent out a big letter to investors explaining why he thinks China has a problem much larger than the 2008 subprime crisis.

China has been burning through cash of late as it manages the devaluation of its currency, and there is a big debate over exactly how much money it has to burn.

Bass notes that many folks look at the foreign exchange (FX) reserves of $3.2 trillion and think that China will be just fine.

It’s really not enough, though, according to Bass’ calculations. According to Bass, the country is out of money today. In other words, China no longer has enough liquid reserves.

The letter said:

Responses we receive when discussing the FX reserve levels of China are filled with reverence: ‘No country in the world has ever achieved $4 trillion in FX reserves by running such enormous trade surpluses with the rest of the world.’ While true, this analysis fails to frame the proper context of the larger situation. When a host country has a large industrial base, enormous money supply (M2), and large import/export business, there is a certain amount of liquid reserves that are required to run the day-to-day operations of the country (think working capital). Over the years, the IMF has fine-tuned the formula used to calculate this ‘reserve-adequacy’ metric. It can be best calculated as follows:

Minimum FX Reserves = 10% of Exports + 30% of Short-term FX Debt + 10% of M2 + 15% of Other Liabilities


Bass is among a handful of hedge fund managers betting against China’s currency, the yuan. Much of Hayman Capital’s fund right now is devoted to the yuan short.

 

[hofmann]

Lies are all angmohs are good at and talk down at Chinese... Go bet bankrupt US currency.

Bro, the fella put his money where his mouth is. Not just empty talk on his part.

He probably did his sums based in the imf recommendations. But China will probably require less than that coz they have higher reserve ratio requirements than US and EU.

 

[ginfreely]

Angmohs ganging up against China.

Lies are all angmohs are good at and talk down at Chinese... Go bet bankrupt US currency.

 

[tanwahtiu]

IMF? A US dictator company?

Who believe a shit of anything from the West. So illegal opium trading is normal to the West, says IMF?

Bro, the fella put his money where his mouth is. Not just empty talk on his part.

He probably did his sums based in the imf recommendations. But China will probably require less than that coz they have higher reserve ratio requirements than US and EU.

 

[Tony Tan]

The only correct way and most effective method to manipulate global resources is by war and carnage instead of money.

Carnage is God's Divine Currency and Unconditionally accepted without consent needed. Globe have only a tiny amount of resources left, and all monies will be left on planet after Total Extinction of Man when Resources Exhausted and Environment Ruined (environmental quality is also a resource - oxygen you breath and water you drink are also resources) When it reach depletion of critical stage no any price can buy any resources, and using military forces to fight mother of all wars also can get very little. Whatever taken will not be given equally to feed peasants, don't dream!

If carnage happened ASAP and big enough scale, there is better slim chance to allow a tiny amount of people to survive. Otherwise it is just TOTAL EXTINCTION with ZERO SURVIVOR.

Economic Development and Civilized Rules is just an idiotic Total Extinction Suicide.

 

[frenchbriefs]

China cannot use the same cheat code as USA?print ur deficit away?

 

[ginfreely]

Angmohs ganging up against China.

View attachment 42660

Where got no money when they still buying power company in Portugal?

 

[eatshitndie]

Where got no money when they still buying power company in Portugal?

prc can manipulate and fake the true value of the yuan. it may actually be worthless at 69 cyn or rmb to 1 usd but by pegging to usd at 6.9 cyn it seems to worth a bit.

 

[frenchbriefs]

prc can manipulate and fake the true value of the yuan. it may actually be worthless at 69 cyn or rmb to 1 usd but by pegging to usd at 6.9 cyn it seems to worth a bit.

If u think it's worthless can pull off a George Soros and short the USD rmb.u can be the first trillionaire.

 

[tanwahtiu]

不要再多嘴 笨蛋....

prc can manipulate and fake the true value of the yuan. it may actually be worthless at 69 cyn or rmb to 1 usd but by pegging to usd at 6.9 cyn it seems to worth a bit.

 

[JohnTan]

I always beat the PRC chinks before asking them for repayment because they will automatically lie about not having enough money. Lying is like breathing for them.

 

[kryonlight]

The massive avalanche is coming soon. Millions of chinks are going to be jobless. You really think Donald Trump is going to save ZTE? LOL!

China’s private firms default on US$2 billion bond repayments as Beijing’s deleveraging efforts bite

China’s new way to kick the can down the road on government debt: longer-term bonds

 

[winnipegjets]

Bro, the fella put his money where his mouth is. Not just empty talk on his part.

He probably did his sums based in the imf recommendations. But China will probably require less than that coz they have higher reserve ratio requirements than US and EU.

These angmos do not understand the Chinese culture or Asian culture in general. China is NOT a transparent country ...and the numbers these financial speculators play with are at best guesses.

 

[winnipegjets]

The massive avalanche is coming soon. Millions of chinks are going to be jobless. You really think Donald Trump is going to save ZTE? LOL!

China’s private firms default on US$2 billion bond repayments as Beijing’s deleveraging efforts bite

China’s new way to kick the can down the road on government debt: longer-term bonds

All in China soon. America will go down first before China. If China goes, America will be dragged down. Trump knows nuts about trade and economics. He just knows how scream and lead a bunch of idiots down the pit.

 

[winnipegjets]

I always beat the PRC chinks before asking them for repayment because they will automatically lie about not having enough money. Lying is like breathing for them.

And you are still begging them to give you a piece of the pie.

 

[winnipegjets]

The only correct way and most effective method to manipulate global resources is by war and carnage instead of money.

Carnage is God's Divine Currency and Unconditionally accepted without consent needed. Globe have only a tiny amount of resources left, and all monies will be left on planet after Total Extinction of Man when Resources Exhausted and Environment Ruined (environmental quality is also a resource - oxygen you breath and water you drink are also resources) When it reach depletion of critical stage no any price can buy any resources, and using military forces to fight mother of all wars also can get very little. Whatever taken will not be given equally to feed peasants, don't dream!

If carnage happened ASAP and big enough scale, there is better slim chance to allow a tiny amount of people to survive. Otherwise it is just TOTAL EXTINCTION with ZERO SURVIVOR.

Economic Development and Civilized Rules is just an idiotic Total Extinction Suicide.

We need a war ...a localized nuclear war ...Iran and Israel nuke each other would be good ....North Korea nuked US, Japan and South Korea would be good. Russia nuked Alaska and US nuked Siberia would be good.

Bring in the wars.

 

[kryonlight]

If China goes, America will be dragged down.

Dreaming! China was just a suckling baby when mighty America was great. Trump is gonna make America greater.

 

[winnipegjets]

Dreaming! China was just a suckling baby when mighty America was great. Trump is gonna make America greater.

America is going to be down the drain when the rich sucks out everything and move to the Bahamas, Trump included. The masses will go for Trump and the Republicans' hides eventually. You can only con people so much till they wake up. How much more can the masses give to the rich and slave like dogs? By the way, slavery was not a choice.

 

[tanwahtiu]

Flithy mouth 多嘴 笨蛋小子

Dreaming! China was just a suckling baby when mighty America was great. Trump is gonna make America greater.