Kyle Bass: Japanese Yen Versus Dollar Will Hit 200 To One Ratio

The Japanese yen will likely “weaken significantly” against the dollar according to Hayman Capital’s Kyle Bass. He spoke to Reuters at the GAIM Hedge Fund Conference in Florida this week. Bass has been bearish on Japan for some time, although there’s a lot of debate right now on whether his view is correct. His Japan-focused hedge fund has not performed well at all, and some speculate that the hedge fund will sustain major losses when it closes in a few months.

Kyle Bass: Japanese Yen Versus Dollar Will Hit 200 To One Ratio

Bass told Reuters this week that he believes the yen will go “north of 200 to the dollar,” a significant move because currently the yen is a little less than 90 to the dollar. He said it’s because the nation never went through the creative destruction period that he believes was necessary. He said the Japanese government just smoothed over the volatility, and he believes that everyone in Japan is in denial about what is happening to their nation’s economy.

Einhorn Tells Investors: Tesla Is Gaming S&P 500 Index Committee

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasThe Federal Reserve has poured unprecedented levels of stimulus into the U.S. economy to deal with the pandemic, and most experts agree that inflation is just around the corner. David Einhorn has positioned his Greenlight Capital to benefit from inflation when it arrives. Q2 2020 hedge fund letters, conferences and more SORRY! This content is Read More


“I think what you have to realize is when your debts are 24 times your central government’s tax revenue and you have a secular decline in population, and all of the things are finally catching up to you, what happens when you have a debt crisis?” Bass asked. “Your currency collapses.”

He also said he believes that when the Japanese yen does collapse, it will have a major social impact on the nation, with many Japanese losing 30 to 50 percent of their savings. According to Bass, “there’s no way out for Japan.” He says it’s “when and not if” the nation’s currency collapses.

Bass also believes that the rest of the world will follow in Japan’s footsteps, although he said he feels the U.S. and possibly Europe are years away from going through what he expects Japan will very soon. According to Bass, the central banks are enabling spending to go higher and higher, and eventually all of that debt will negatively impact the currency.