Topic: Kyle Bass

The discussion shifts to the Strait of Hormuz and a potential new canal project involving Oman to bypass Iranian influence. Financial analyst Kyle Bass explains how enhanced sanctions aim to strangle Iran's economy by targeting the laundering of Iranian oil money through Chinese RMB and UAE cash houses. The hosts debate whether these moves are structural shifts or short-term political maneuvers.

In an interview with Kyle Bass, Steve Bannon argued that China, in coordination with Western elites, successfully de-industrialized Western democracies. Bannon claimed that China's strategy involved exporting overcapacity and deflation to the West while moving hundreds of millions of its citizens into the middle class. He credited Donald Trump with challenging this established global order and the bankers who financed China's rise.

Investor Kyle Bass reports that a senior Obama administration official admitted the plan to grow U.S. exports involves "killing the dollar." Since the administration will not allow nominal wage deflation, currency devaluation is seen as the only remaining lever to make American goods competitive. The hosts analyze the implications of this policy on domestic savings and global trade.