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China and Japan are in a Race to the Bottom

China & Japan are a Race to the Bottom
Todd "Bubba" Horwitz on Liberty Talk FM - Image Rotator Photo

BY: Todd Horwitz, Host & Senior Contributing Analyst
PUBLISHED: September 8, 2015

Current Economic Policies have Damaged the Economy.


Today on The Bubba Show, Todd introduces trading strategist and founder of Short Japan Debt, Tres Knippa. Tres comments that the Chinese Yuan is not done and will go lower. He feels that the central bank knows that they have a small window of opportunity to create a currency that allows for exports. China and Japan are in a currency war and the only way to win the war is to succeed in the race to the bottom. 

Tres comments on the current economic policies and how they are damaging the economy. He asserts that the liberals are bashing the trickle down policies of the Regan administration but that they are essentially using the same philosophy. Quantitative Easing (QE) has allowed the ultra rich and the entitlement society to benefit at the expense of the middle class. He is critical of the academics and cites Larry Summers and his policies as hurting the middle class.

Bubba and Trey discuss the current yield markets. Tres introduces a new idea, which he believes can give clients yield. He maintains that there is yield in buying discounted electrical bills. He suggests that if you can pool them that they represent a great opportunity. His strategy is to pay the broker that initiated the contract upfront. Then, he takes the discounted note and collects the yield which is much greater than any current note.

Bubba laments about the jobs numbers. He believes it is time for change as the Fed has run the country for years while failing to provide the growth that we need. When the inmates run the asylum, very few good things are going to happen. He comments that the Fed continues to be the problem and has been for the past six years. Bubba believes we are in dire need of a change in leadership.     


About Tres Knippa

Tres Knippa PhotographTres Knippa is a trader, broker, and member of the Chicago Mercantile Exchange and appears weekly on CNBC, Bloomberg, and many other networks around the world. Tres has been trading futures and currency markets for over 17 years and became a member of the Chicago Mercantile Exchange in 1996 after moving to Chicago from Texas. In 2004 Tres was the youngest member to ever be appointed to the Live Cattle Pit Committee at the Chicago Mercantile Exchange. Today, Tres’ focus is nothing short of global in scope. Tres trades a variety markets for himself and his clients including agricultural futures, currencies, stock indices, and interest rates. Tres’ customer base is as diverse as his positions. His customers include a commercial wheat farmer in Brisbane, Australia, a fund manager in London, England, a currency trader in Dubai, UAE, a stock index trader in Prague, Czech, a fund manager in Italy, and a feedyard owner in Dodge City, Kansas amongst many others. Tres is a registered Commodity Trading Adviser with Kenai Capital Management. While building his business, Tres found the time to attend classes and graduate from the Entrepreneurial Masters Program at MIT in Boston, Massachusetts. He also holds a BBA from Baylor University and a Ranch Management Certificate from Texas Christian University.

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[Short Japan Debt – website]

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Todd Horwitz began his career in the financial industry as an option market maker at the Chicago Board of Options Exchange in 1982 and was one of the founding traders in the SPX pit. He is an active member of the am currently a member of the Chicago Board of Trade.