Blast From The Past: Kyle Bass Was Right About Everything... Again
When back in May 2010 Greece was bailed out for the first time, the corrupt authorities and the conflicted media said this is the beginning of a new beginning, and soon everything would be fixed. Nothing has been fixed and everything has gotten far worse. Back then we were among the few to point out that the "bailout" was a travesty and that you can't fix an excess debt problem with more debt, yet that has been precisely the methodology of every bailout ever since the first. Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can, unfortunately the strength of every kick is getting weaker and weaker until one day, the can refuses to move, and it is game over. Looking back at this historic period which sealed the fate of the Keynesian system, nobody has caught the paradoxes of the current broken economic and financial model better than Kyle "Nickels" Bass. Below, for everyone's must read pleasure, we once again present his May 11, 2010 letter titled "The Pattern is Set ? Betting the Bank on a Keynesian Free Lunch" which fuses everything that has happened in Europe since then on the fiscal side, and is about to happen on the monetary one. "From now on, it seems everything will be deemed to be a liquidity crisis that will be met with more "bail?outs" and debt financed spending. This will eventually break traction in a violent way and facilitate severe inflation or even hyperinflation. The one thing the EU taught us this weekend is that paper money will be worth less (maybe much less) in the future." And indeed it will, because more than anything, money is increasingly and rightfully seen as the symbol of the free lunch that Keynesian economics promises, after that "just one final debt hit." Is there much or any hope? Not really, but being prepared while watching the inferno blazes soar higher and higher is the best we can all do.
The all-encompassing summary paragraph:
This weekend, the EU and the IMF effectively went all?in with a bad hand in the highest stakes game of financial poker ever played with the world. We believe the agreement released was nothing more than a Potemkin agreement in order to placate bond investors. In the end (and there will be a reckoning for many countries) nations, including the United States, need to dramatically cut spending and get their fiscal balances in order. Unfortunately, our elected officials are on the hamster wheel of electoral cycles and are not able to make tough decisions like this as they would likely not be re?elected without a “sea change” in public opinion towards government spending and deficits. We are therefore on the path to significant currency devaluation around the world that will likely result in significant inflation. We increased our holdings of gold on Monday morning as well as taking other steps to position ourselves for the most likely outcome over the next few years. Interestingly enough, based upon the market reaction in the last 36 hours, it seems the law of diminishing returns applies to bailouts as well.
Full letter.
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Our Kenyan moon cricket has a Nobel Peace Prize solution.
FEAR - Let's Have a War
Crazy song.
That beat is a part of the problem, by the way.
The Bass is all right though. ;-)
ORI
final-cut-trailer-01/
I raise you this:
http://www.youtube.com/watch?v=hutUnGwHFlQ
Regards,
Cooter
And I'll raise you this (where bernack talks about mega QE3, bitches):
http://www.youtube.com/watch?v=XZ5TajZYW6Y&feature=player_detailpage#t=2s
You know the game, and we're gonna play it.
The shit is going to hit the fan, a shit storm is coming:
http://www.youtube.com/watch?v=tjMkqFmRGL4
I can smell it!
http://www.youtube.com/watch?v=SaYUqXAmXRQ
Run for your lives!
From here the next logical URL would be sec.gov or whichever porn site some PhD in enginerring (at former institution) was contracted to "accerlerate" to remove "latency" from the important work that Bubba needs.
In leui of facts we can always just use the second to last bubble as a discussion point. The housing bubble, starring Robert Rubin as Community ReInvestment Actor-Homemaker (Monica) XO. http://www.youtube.com/watch?v=IxO8_lOOra8&feature=relmfu
Before you ask, the last bubble should be obvious with less sodium.
lol thats one of the top10 best ever clips in history.
but please dont take away my fluoride. im on a strict iq lowering regime and
dont want any interference. going for broke.
i knew it!
"It allready started in the city. Surburbia will be just as easy. There's so many of us. Let's have a war - jack up the DOW Jones - We'll start a NEW Jersey" - Let's Have a War - A Perfect Circle - Maynard
Kyle's recent BBC interview:
http://www.youtube.com/watch?v=K-F_QF1XTXI
He's sharp as a tack.
www.pmbug.com
I just watched the BBC Kyle Bass interview as linked by "bernorange". Thank you for that. Clearly it's the interview that many ZH readers refered to early on this week commenting on how the acerbic female BBC interviewer kept so rudely inturrupting Bass. IF she would have shut her kidney pie hole long enough to allow Bass to complete or expand on his thinking, we all very well might have heard and learned from one of the true visionaries of this golbal debacle what is, what happened and, what shall be.
I'd like to lock the BBC interviewer in my garage with Chris Mathews and leave the car running.
BASS KICKS ASS!!!
"kidney pie hole" HA! hahahaha..........
Great interview. BBC reporter shows the intense hostility MSM has against those who understand the jig. Luckily for readers people like Bass educate and help inform rather then distort and confuse. No wonder U of Texas has him as one of their advisors.
Unluckily for viewers, Kyle Bass had to deal with an interrogator-in-training, instead of an interviewer, which limited his ability to educate and inform.
A financial genius who can visualize and explain economic reality as easily as Einstein could envision general relativity. Here's a keeper quote from him near the end of the interview:
Capitalism without bankruptcy is like Christianity without hell. -- Kyle Bass
I have a feeling there will be many "Bassisms" to compile:
"You can't hate the mirror because you're ugly"
Kyle Bass is an idiot. Who in their right mind would buy 20 million nickels for scrap. Not only is it illegal to deface currency why would you waste the much production to turn it into scrap. Why would someone want to destroy something that someone else produced? How is the scrap value worth more than the actual value when nobody in the world is buying commodities except for China? China overspent their stimulus money and cannot build for infinity.
How can commodities rise 400 percent over 10 years if growth and inflation (25 percent since 2000 of the dollar) is not even near that amount?
Commodities have rallied 400 percent in the last 10 years, and population has only increased 25 percent (again the 25 percent number same as inflation of the dollar). The speculators have made their easy money and thats about to end.
http://www.indexmundi.com/commodities/?commodity=commodity-price-index&m...
Don't you think its a little irrational for an Australian miner to make $200,000 dollars a year?
In case you haven't figured it out Operation Twist was designed to burst the commodity bubble. The MF Global and CME thing was just the writing on the wall. The parabolic rise in commodities in the 2000's is the new housing bubble. The bubble burst will be a good thing. It will leave much more money in our pockets. Anybody who buys gold is greedy.
Look at the CMD versus DJP charts. DJP has dropped below its 500 day moving average. Very Bearish. The 10 year commodity rally is about to end in a big way.
Kyle Bass is a genious. Where did he say he was going to melt them to scrap? The nickels have more value, just as the silver coins of the early 60s do, as coins rather than scrap because they're more recognizable that way. In an inflation, their value will go up because the metal will be worth more in relation to a paper dollar. In a deflation, their value will never be less than 5 cents even though the underlying metal may be worth much less in relation to a paper dollar. In a hyperinflation, governments often devalue their paper currency 10:1 or more. Usually, they don't bother with the change, just the paper money. So it's win, win, win. He's protected his savings in three different environments for practically free.
I can tell you are trying to sound smart but its not working. Number 1 Fail - you cannot nickels in an investment vehicle so therefore they cannot gain interest anywhere. Number 2 Fail - Scrapping Currency is illegal (And yes that is his motive). Number 3 Fail - What if the value of the metal declines? Its not a protection against inflation in anyway. Number 4 Fail - If the paper currency is worth less then the change is worth less too. Number 5 Fail - USA is in the best position in the World, the Chinese and Indians have no hope without the USA.
Biggest Fail - The guy sits around and disses his own country comparing it to Zimbabwe. That is just sad.
Second Biggest Fail - He keeps on saying over and over again Japan's economy is doomed. Not likely. I have seen nothing in the news that says the Japanese will default, and its been a year now.
I think I'll start a Kyle Bass Hayman Capital short fund. His recent MTG investment has already lost 4 percent and net income per employee is -534,000 dollars. Total garbage investment.
Tom Green shorting Kyle Bass is nothing compared to that epic play when Gene Pool shorted Tom Green.
Hakuna Matata!
I think you would be a good cyber mate :)
about me: physically fit and in my early 30s.
After amassing a fortune online , now looking to SOLIDIFY my assets.
PM me.
The most demonstrably foolish thing I have read on ZH.
They are not making any more gold or oil, and both are getting harder to find. The debt and fiat currency bubble continues to grow. Electronic recording of debt and currency to infinity and beyond!!!
the bitch needs to SHUT THE FUCK UP
Good call. Maiden kicks.
This article nails the crux of the problem, we have a ruling class that will not willingly give up power in order to correct course and avoid the wall. This is a recipe for the status quo, and thus eventual disaster.
History has shown that these types will ride the fiery wreck right over a cliff because they know that worst case they end up in the same place they would if they passed the reigns willingly. However, they hope maybe, just maybe, they can find a means to avoid their demise along the way.
4th Turning Bitchez...
http://www.youtube.com/watch?v=jqR9SQGrlBE
"Our Kenyan moon cricket has a Nobel Peace Prize solution."
Just as our Energy czar had a Nobel Physics Prize solution.
And still the world cares of nothing but the latest on Demi and Ashton. I swear, this is how Noah must have felt - after the ark was built but before the rain began.
At God's command, the Moon Cricket sorts through life of all kind upon the face of the earth, selecting the species, two by two until he has finished excepting that final selection, that of man himself. Choosing himself, his wife and Jimmy Carter, God hisself responds...
....ipse miscebitur
Cubits, bitchez.
why not read Ludwig Von Mises?
http://expose2.wordpress.com
Actually, Keynsian economics is getting a bum rap here. What Keynes ACTUALLY prescribed was that Governments should establish reserves during times of surplusues (Aka "The good times") and then spend those reserves during times of defecits (Aka "The Bad times").
Unfortunately, our political "Elites" got hold of this and, as usual, completely fucked it up so as to interpret Keynes as "Spend, spend, spend". The idea of actually running surpluses and saving for a rainy day (Aka "Common sense") during the expansionary phase of the business cycle was kind of beyond the brain power of our corrupt and conflicted politicians.
You are right. The neo-Keyensians are as bad as the neo-Darwinists. They are too stupid to understand the WHOLE theory of their respective messiahs. But, like children they latch onto the easy bits that are out on the surface and they try to make the entire system fit those ideas. Unfortunately, this leads to experimentation on all of us using incomplete and therefore, unsound, methodologies. Which, of course, invites disaster.
Guten Tag, Herr Disaster, we've been expecting you...
The problem has nothing to do with Keynes. A counter-cyclical national finance policy was abandoned years ago. After all, you cannot seriously propose savings if it means cutting off the development of fabulous new weapons on the one hand, or terrific innovations in medicine and surgery to which every non-saving poor soul has a right! How can you put a price on something as precious as innovative weapons or endless free mobility-providing scooters and life-extending medical procedures. Now it's true we don't technically need new and better H-Bombs or subs. And it's somewhat apparent that any nation that expects to give away 450,000 dollars worth of surgery, hospitalization, and medicine to those who never saved for it is going to go broke giving new knees and lungs to poor folk. So you see we can't go counter-cyclical though it might save our economy. It is just stunning to reflect, with a wholly joyful heart and inspired rededication to work, how many of the very nice homes in my neighborhood are owned by physicians and (defense) technology executives who never invented anything, which only proves that these two industries must be good for an economy. They pay very well, don't they?
I wonder if Kyle has cottages for rent on his ranch. I have many nickels.
+ 1 on the nickles...
Great thing is... In a pinch, you can slag bullets out of them...
I always enjoy listening to this guy get interviewed. He always stays very calm as he tries to educate whatever unqualified idiot they have asking the questions.
+1
Kyle is very calm and he knows his stuff. A lot of hedge fund managers are front running snd insider trading scum like Raj, Stevie C and other scum. Kyle is like a calmer American version of Hugh Hendry. Hugh hammers them with condescension and sarcasm. Alabama's own Jim Rogers is more like Hugh calling politicians morons. Mucho respect to Kyle Bass.
Its a lot easier to be calm when you know whats going on and have a few million in the bank and a couple ounces in the vault.
I'm thinking Waco,TX and The FBI.
If I am not mistaken, Kyles ranch engages in much charity for service members who come home from combat and face difficulties. So, not something I would put high on my list to pick a fight with.
Regards,
Cooter
May I borrow from the great Trav7777 youtube video?
"You don't know how, mind fucked you are, do you?"
.gov will control it's assets, human and otherwise.
http://www.youtube.com/watch?v=nnpEI3njoeo
Trav7777 youtube video
Bass also has some very serious partners in the ranch investment. Texas is Kyle's kind of place and nobody's going to bother the partnership if trouble comes.
I have cases of 7.62 x 39mm to help protect many nickels ....
!!! Listen to this man!!!
Whenever 'it' happens, the heavy grey stuff will be more important that the heavy yellow stuff. (Big Slick? hint: my icon-47)
Burn this equation in your mind: AU - PB = MINE FOR THE TAKING!!!!!
Seriously compadres - if you truly believe what we sling on this site (I do, for the most part) and you don't have a firearm in the house, you are as bad an ostrich as the blind sheep populace you make fun of. Go to Dick's Sporting Goods today and buy a Remington 870 or a Mossberg 500!! 300 bucks (9 Silver Eagles).
Add the tactical ops stock for and extra 4 ASE's. worth it.
Big SLick,
AU - PB = MINE FOR THE TAKING!!!!!
First time I have seen this equation and believe it is the only valid one concerning physical ownership.
+10,000.
Am I reading it wrong? Sounds to me like you are saying you will be doing some looting?
"Am I reading it wrong? Sounds to me like you are saying you will be doing some looting?"
:) Not in the least, Bendromeda! (STRONG EMPHASIS!!) - and to you too Big Ching. Just trying to make a point. Heaven only knows what's coming. Make plans to protect your life before your fortune. I think that's lost on a lot of people in these discussions. They have no clue what's on the horizon.
Once again, if you do not own a firearm, you are a fool.
You can own a simple 12- or 20-gague with ammo by sunset today.
(If it makes you nervous - keep the thing locked in its unopened box in the attic)
Imagine needing one and being 600th in line at the mall the day after trashcans start flying through our windows.
Ya, why don't you just paint a giant red bullseye on your back that sez......"Come and get me." Nooooooo thanks. Ya, 'Wacofying' your residence/compound is about as stupid as it gets.
Hmmm... my kids are starving and I have no food. Should I rob Bidness Man or Big Ching?? Decisions, decisions....
Rob neither. You very well might get shot. Dead.
We can hope so - some real dirtbags on this site lately, but it is good to be reminded that some soulless "preppers" will quickly turn into the "zombies" they so obsess over the moment things go bad - for them.
See my item above - not me. You may be missing my point.
http://i.imgur.com/OiPWD.gif
Awesome WB7, one of your best in my estimation.
ORI
wow, I really dig this William :) Thank you for all you do!
That's beautiful.
I concur it's 1 of your best with my 5 cents worth
Brilliant!!!
you never fail to impress william...very nice!
"Don't blame the mirror because you are ugly" Kyle Bass. Destined to be a classic.
so the wall of money is here.....hyperinflation OR a ton of inflation with a gold price on pluto is the 2 choices
Dont count out german resolve to prevent excessive money printing.
20 billion a week or so is just enough to japanify, maybe. It certainly wont cause hyperinflation.
The germans have never wavered. Why do people assume they will allow excessive printing?
They will not print.
ECB has been unequivocal on this from the start.
This is exactly why (physical) gold will be revalued much higher.
This is why they mark their gold reserves to market on their own balance sheet every quarter.
The euro is not backed by debt, it is backed by whatever you can purchase with it. The ECB openly value it by marking their gold to market.
The Euro is worth exactly how much gold the market says it is.
This is a problem for the market to solve, and the ECB has always been prepared for this eventuality; hell, this is what he euro was created for: this revaluation of gold.
The ECB simply want the euro to survive as a medium of exchange, and they would prefer the market devalued the euro primarily against physical gold.
Its a big devaluation, but this is everything devaluing against gold, thus avoiding many of the ravages of hyperinflation, as gold absorbs most of the blow.
Can't do this with the dollar, sorry.
fantastic comment +1
Remember this: they'll print and then insitute and enforce wage and price controls across the board. It's been tried before, with poor results, but this is truly an existential crisis and their resolve will be commensurate. Of course in time it too will fail
the euro is now destined for the ash heap of history sooner rather than later. it must be replaced with something lest trade flows seize up which is what Europe (i think) is trying to prevent now. you will know if there is a real crisis should border crossings be in actuality closed. Germany is in the throes of a full financial panic in the sense that they've gone from saving Greece which they said they would do to saving their banks at all costs. Everyone else is now following suit. again: the end game is not in doubt. "gold, gold, gold, gold, gold" and "hide your ill gotten gains in Switzerland." needless to say "the country is left instaneously destitute." Greece still needs saving here! Needless to say the only hope is a "bail in" now....
http://www.youtube.com/watch?v=hURjXxbyQ9k&feature=player_detailpage
They'll repace the Euro with a new currency, the Esperanto which will be exchangeable at 3:1 (basically a 66% haircut). Then they'll peg it to the dollar.
Dream on.
There's the little matter of gold being fixed to the dollar at $42.22/oz.
The dollar fares worst in the coming adjustment.
the german's are nobody's fool - they see what has happened in american markets by way of hft - they're fully aware of the "financial services modernization act' of 1998 {[coincidence of date inacted ?] [literally killing the glass-steagall act]} - contrary to most views, and beliefs ,... is their strong opposition of having the 'ecb' turning into a 'frb', and the enslavement it has caused to the american cititzenry - also the german's want an inactment/ passage of a 'financial transaction tax {[ftt][tobin tax]} which undoubtably will hurt the london banks - merkel, knows all this, and has great hindsight - thus realizing that after bailing-out all the weak sisters will eventually lead to crippling the caretaker [that being the german's] - so in finality,... if the big bond[ghouls]holders refuse to take haircuts, it's adios amigo - god bless you angela
ps. Was mochten Sie?
ps2 Konnen Sie mir helfen? - Danke!
She got her looks from her father. He's a plastic surgeon.
~GROUCHO MARX
agreed. ZH needs a Hall of Fame for quotes...Hugh Hendry's "I would recommend you panic." is right up there too.
Where does Bass hold his gold? I knew he took delivery, but where is at? At the bullion banks?
libertarian86.blogspot.com
Where does Bass hold his gold?
In his desk drawer...
What a stupid fucking question.
Where is YOUR Gold?
Kyle's is in the strongbox under the left side of his bed (the one with the sticky note on it that says "there is nothing valuable in here" to deter potential thieves), and the key to the strongbox is under the soap dish in the hall bathroom....
Gee, I wonder where Kyle Bass keeps his guns...?
The point is his gold safe?
I was reading that it was in a bullion bank (I think HSBC). So if HSBC goes under, will he get screwed over.
After reading what happened to Celente, I wouldn't be surprised if people can't get their sh** from the banks when the economy implodes.
High profile gold gets stolen or otherwise confiscated. Low profile gold survives.
Get it? Mr. Bass will learn a hard lesson as Bennie watches and giggles.
Vanity has a downside.
Kyle has..
1. off grid capability.
2. Plenty of guns.. Larue is where? and Kyle is what to Larue? if you dont know what Larue is.. then just kill yourself.
3. Kyle's Gold will be just fine.. mostly becuase Kyle can get his Gold thru force if need be.. and if you think Bank Vaults in Texas are any less safe that Fort Knox.. you are lying to yourself.
4 I am from FL so the only two things come out of Texas.. George Bush and Kyle Bass.. Pick a Team! and stick with it.
There's a third thing that comes out of Texas but uh I can't uh....the third thing out of Texas, uh, Bush, Bass...Bass and, let's see. I can't. The third one, I can't. Sorry. Oops.
Is it the EPA?
redpill
Different BASS.
Kyle is not related the Ft Worth Bass family.
Ted Nugent is currently residing on his ranch in TX (near Bush in Waco).
http://www.youtube.com/watch?v=LCHtw6WbbnM
Say what you want about Ted, but I want him on my side when we get to Mad Max!
Nugent is actually a moron. You don't want him anywhere near you if/when the SHTF. I can still see him cutting into his thigh with a chainsaw whilst acting like a jackass in front of a bunch of kids...