Hedge fund manager Kyle Bass warns of China’s economic collapse, citing massive imbalances and declining deflator. Capital flight from China will impact global markets, pushing investors towards US assets like Treasury bonds as a safe haven. China’s real estate bubble bursting leads to deflationary pressures, exacerbating economic decline. This shift will reshape the global macro landscape, strengthening the US dollar as capital seeks safety. US economy will feel the impact of China’s collapse through lower growth and disinflationary pressures. Investors should focus on protecting capital in the current uncertain economic climate.

Read more at Investing.com: How Could China’s Economic Slowdown Impact the US?