The expert Kyle Bass, famous for predicting financial crises, projected the imminent collapse of the Chinese Communist Party (CCP). “It’s a paper tiger,” he said.
“Their strength is only perceived strength,” Bass explained during an interview with the specialized media, Global Capital, on Oct. 9.
The specialist’s expert prediction is based on his affirmation that the Chinese financial system has created an enormous bubble that—according to his calculations—is about to burst.
“China’s [banking] system is even more precarious when we realize that, even at the biggest banks, loans are not made to borrowers based on their ability to repay. (…) Instead, loan decisions are political decisions made by the state,” Bass said in a letter to his investors as early as 2016.
“The manner in which the Communist Party [CCP] sets up the architecture of its financial system is very clever,” he said in a recent interview with journalist Silas Brown, arguing that 95 percent of Asia’s leading economists are members of the CCP.
He explained, the Chinese state controls the flow of data and narrative in the financial sphere through Western companies that agree with this “architecture.” “Nothing can be printed without someone in the Communist Party approving it being printed,” he said.
These actors are the ones who—according to Bass—falsely repeat that China is the second world economy, attributing to it the creation of 15% of global GDP.
“But that is taking their renminbi [yuan]-based economy and converting it back at a closed capital account for the dollar. But if they opened their capital account, the renminbi would drop 40 to 50 percent, and its economy would be just the third or the fourth largest economy in the world,” he said.
The problem is moral
Bass indicated that his analysis of China is not only based on the market but more on the moral level, highlighting the serious accusations against the CCP for the systematic violation of the human rights of its people.
He criticized Western businesses that invest in China despite being aware of what is happening there, “It’s all greed,” he said.
“Do you think the ‘woke’ NBA would have a practice facility in Xinjiang? It boggles my mind. (…) If people can make more money by just closing their eyes, they will. Look at the Disney’s webpage and look at their mission statement, then they film ‘Mulan’ in Xinjiang and their lead actress is a very pro-Communist Party member. Like, it makes no sense to me other than greed,” he explained.
The Xinjiang region is where the Uighur Muslim minority, severely persecuted by the communist authorities for their faith, is concentrated.
Bass highlighted the work of the prominent British human rights lawyer, Sir Geoffrey Nice QC, who called weeks ago for the formation of an independent court in London to investigate whether the CCP’s abuses against Uyghur Muslims constitute genocide or crimes against humanity.
Nice previously led the prosecution of former Yugoslav President Slobodan Milosevic at the International Criminal Court and recently presided over the Independent Court on the Forcible Removal of Organs of Conscience in China, known as the China Tribunal. This court determined that it was “beyond doubt” that the state-authorized forcible removal of organs for profit has been taking place in China for years and “on a significant scale.”
The Chinese Tribunal argued that these organs come primarily from imprisoned believers, most of whom are practitioners of the ancient Chinese discipline called Falun Dafa.
“I applaud the UK for actually putting together a group run by one of the top QCs in England to talk about live organ harvesting by prisoners of conscience in northern China. I don’t know how anyone can read Geoffrey Nice’s report and even engage one more day with China,” Bass said.
“I can’t believe these kinds of ethnic genocide are happening in this day and age and yet, all of these various groups of people tend to just turn a blind eye because of money,” he said.
That is why, to summarize, Bass concluded that his problem with the CCP is moral, “I see the inner workings of the pure evil of the Chinese Communist Party and the self-righteous nature of this government.”
“China’s somewhat of a paper tiger, and I think they’re going to collapse because they’ve played their political hands so poorly. Their financial architecture won’t allow them to be a foundational currency for the rest of the world. China will have a real rough go of this, and I think the democratic West will actually coalesce together in combating all of the evil ways of China,” he concluded.