A Look at China's Looming Debt and Credit Problems

The transcript discusses the potential devaluation of China's currency, with estimates ranging from 40% to 70%. It highlights the historical context of China's financial imbalances, particularly since the global financial crisis, and the expansion of bank credit. The discussion includes the credit to GDP gap, speculative attacks by hedge funds, and the potential for a global financial crisis. Kevin, a persistent China bear, explains his positioning and risk management strategies, despite facing drawdowns. The conversation also touches on the challenges of betting against the Chinese government and the implications of their financial policies.

What historical event is referenced as a comparison to potential currency issues in China?

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What is the overall sentiment regarding the inevitability of a financial crisis in China?

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How has the Chinese government responded to capital outflows?

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