Kyle Bass thinks that the monetary policy of Japan will work and their leaders are now realizing that. He said that what they were doing represented 70 per cent of what the Fed was doing in the U.S. and with an economy one-third the size of the USA.
He also said with regards to Abenomics that Japan is “a Ponzi on top of a Ponzi”, adding that it is on “tilt” but the question is when.
Moreover, Kyle Bass said that there was fatalism in every person he had spoken to in Japan, adding that their thinking is changing and the way in which they talk about debt is changing too as they spend half tax revenue on debt services.
All in all, Bass thinks that if rates go up, it will be a “game over” for Japan.