{"id":24337,"date":"2017-07-01T08:20:41","date_gmt":"2017-07-01T13:20:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24337"},"modified":"2017-07-01T08:20:41","modified_gmt":"2017-07-01T13:20:41","slug":"kyle-bass-warns-of-tectonic-shift-in-us-china-relationship","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24337","title":{"rendered":"Kyle Bass Warns Of &#8220;Tectonic Shift&#8221; In US-China Relationship"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2017-06-30\/china-faces-its-comeuppance-kyle-bass-warns-tectonic-shift-us-relationship\">Kyle Bass Warns Of &#8220;Tectonic Shift&#8221; In US-China Relationship<\/a><\/h3>\n<section class=\"messages-holder\"><\/section>\n<section class=\"node node-type-story node-full node-nid-599006 ads-injected\">\n<div class=\"content\">\n<p>Hayman Capital&#8217;s Kyle Bass ventured on to CNBC this morning to<strong> drop some painful truth bombs<\/strong> about<strong> Trump&#8217;s &#8220;drastically changed Chinese diplomacy&#8221;<\/strong> and <strong>China&#8217;s looming &#8220;come-uppance.&#8221;<\/strong><\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000632320&amp;size=560_315\" width=\"560\" height=\"315\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>Bass began by highlighting what he <strong>calls a &#8220;tectonic shift&#8221; in US-China relations in the last few days,<\/strong> pointing to two crucial events&#8230;<\/p>\n<p>1. Things changed drastically when <a href=\"http:\/\/www.zerohedge.com\/news\/2017-06-29\/us-sanctions-chinese-entities-over-ties-north-korean-nuclear-program\"><strong>US launched unilateral sanctions on China over North Korea<\/strong><\/a>&#8230;<\/p>\n<blockquote>\n<p class=\"excl\">&#8220;Xi is a control freak and he absolutely doesn&#8217;t appreciate the United States acting unilaterally&#8221;<\/p>\n<\/blockquote>\n<p>2. Things escalated when <strong><a href=\"http:\/\/www.zerohedge.com\/news\/2017-06-30\/furious-china-outraged-us-sale-14bn-weapons-taiwan\">Trump sold $1.4bn in weapons to Taiwan,<\/a> angering Beijing more<\/strong> as Bass notes:<\/p>\n<blockquote>\n<p class=\"excl\"><strong>&#8220;Taiwan was the one area which Beijing has asked Trump to stay away from during his meeting at Mar-a-Lago.&#8221;<\/strong><\/p>\n<p class=\"excl\">&#8220;Since the death of Otto Warmbier, any chance of meetings with North Korea are now off.. and <strong>our diplomatic relationship with China took a major step for the worse yesterday.<\/strong>&#8220;<\/p>\n<\/blockquote>\n<p>Bass notes that<em><strong> &#8220;China is trying to make marginal changes in its balance of trade with US &#8211; buying beef once again and importing a lot more crude oil from the US.&#8221;<\/strong><\/em><\/p>\n<div class=\"content\">\n<p>But then Bass shifts to the potentially even more precarious situation under the hood of China&#8217;s economy. <a href=\"http:\/\/www.reuters.com\/article\/us-china-debt-restructuring-idUSKBN16F0AF\">As Reuters reports, <\/a>China&#8217;s leaders want the restructuring of their massive non-performing loans problem to address financial risks while avoiding big employee lay-offs, and have instigated &#8216;cure by committee&#8217;..<\/p>\n<blockquote>\n<p class=\"excl\" style=\"text-align: left;\"><strong>&#8220;The solution for zombie firms isn&#8217;t just bankruptcy,&#8221;<\/strong> a Shandong-based banking official told Reuters.<strong> &#8220;The impact of bankruptcy is just too big. Just think about the thousands of workers. Social stability is key.&#8221;<\/strong><\/p>\n<p class=\"excl\" style=\"text-align: left;\">Stability is always uppermost in the minds of Chinese leaders, and even more so this year, ahead of the five-yearly party congress this autumn, when a new generation of senior leaders will be selected.<\/p>\n<\/blockquote>\n<p class=\"excl\">\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<div class=\"node-links\"><\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Kyle Bass Warns Of &#8220;Tectonic Shift&#8221; In US-China Relationship Hayman Capital&#8217;s Kyle Bass ventured on to CNBC this morning to drop some painful truth bombs about Trump&#8217;s &#8220;drastically changed Chinese diplomacy&#8221; and China&#8217;s looming &#8220;come-uppance.&#8221; Bass began by highlighting what he calls a &#8220;tectonic shift&#8221; in US-China relations in the last few days, pointing to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[130,8695,827,4318],"class_list":["post-24337","post","type-post","status-publish","format-standard","hentry","category-geopolitics","tag-china","tag-kyle-bass","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24337"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24337\/revisions"}],"predecessor-version":[{"id":24338,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24337\/revisions\/24338"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}