Kyle Bass is warning about the Japanese market — again. He’s been saying for some time that he believes Japan’s economy is collapsing. Now he’s warning that Japan may lose control of its bond market once investors realize that the nation’s government debt-to-GDP ratio is the highest in the world.

Kyle Bass

The yen has steadily declined against the U.S. dollar quite rapidly in recent months, and many investors who bet against the yen also went on to buy Japanese stocks. However, speaking on CNBC, Bass said that Japanese stocks aren’t such a great investment right now.

In fact, he called investors who short the yen and then buy Japanese equities “macro tourists” and said he believes that those who do buy Japanese equities will end up being disappointed.

In Kyle Bass’ view, Japan may start looking into purchasing foreign bonds, and if the nation does that, he predicts there will be “an implicit trade war” that begins with its purchase of foreign bonds.

This week the Bank of Japan decided to double the monetary base of the yen over the next two years; Bass called that decision “a giant experiment.” He said the nation had to do something because its debt has grown so large. He also pointed out that thus far, the actions of Japan’s central bank have devalued the nation’s currency

According to Kyle Bass, Japan must get the yen up to the dollar by the end of next year, but if its central bank loses control, the yen will simply continue to weaken.