Kyle Bass Un-Edited: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!"

Tyler Durden's picture

If the abridged summary from BBC's Hardtalk interview with Kyle Bass that we published yesterday was not enough for those seeking sense, truth, and direction, then (as promised) the full 24'30" interview will quench that desire. Reflecting on the similarities of his subprime perspective, he provides a crucial context for the debt-laden world of sovereign debt that he is now hedging. Shrugging off the somewhat snarky 'nefarious short-sellers' angle of questioning (and insuring the uninsured prod), he simply and elegantly points out how massively asymmetric the bet was, how the asymmetry in Europe has disappeared now, and all the asymmetry lies in Japan. From the 14-minute mark, describes the demographic disaster, destroys the savings myth of the land of the rising sun, and brings into focus how Italy's rapid demise should be a forewarning for the debt-servicing of Japan.

Ending up on the Fed's printing and the need for guns and gold, there's a little here for everyone!

"Buying gold is just buying a put against the idiocy of the political cycle. It's That Simple"


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strannick's picture

I always thought it was buying a call for the idiocy of the political system

BaBaBouy's picture

No Way... Im Sticking with the tried and true...

Rozengreen, Greensapn, Guythiner and Bennankie.

They will save us.

Have faith.

Give them a chance.

Just give them a chance...



dlmaniac's picture

Bass was telling the host what went wrong in the world economy and yet all she cared was how much money Bass made.

wisefool's picture

After he stated over and over again that he was majority long on everything, He bought $99 worth of stuff and a $1 lottery ticket. Typical hate the player, not the game.

FEDbuster's picture

The name of this show should be "HARD to Talk".  She's worse than Jim Cramer.  Ask a stupid question, then shut the fuck up.  Kyle handles her pretty well, but she should have one of those rubber ball gag things in her dumb ass mouth. 

I wish she had asked one question, "Kyle tell us what you think of the current world economy and how are you investing and preparing for the future?"  Then let Kyle talk for 30 minutes straight.

"You can't hate the mirror cause you're ugly" fucking classic!!!

wisefool's picture

I dont think he would need 30 minutes. Back to my gambling analogy, I think he would say. 

Kyle: The store advertized they would raffle off a car every hour on the last and first days of the month. If you buy a $100s worth of goods you are entered in the drawing. I need to buy stuff just like everybody else. I know that people get paid on midnight of those two days. I will show up at 23:01. Leisurely  buy my $100 of goods and win the car because my entry will be the only one in the hat.

MSM talking head: HOW DO YOU KNOW THAT!!!!!!!

Kyle: The folks that saved will have started chasing the prize at 00:01 of the first day. The folks that did not save, or read the adverts will not have any money till 00:01 of the 2nd day.


Kyle: Thats Jeff Bridges. he is a pacifist. he is here to drive the other car home.


Kyle: What kind of car do you drive?

MSM talking head: I dont own a car. I use the service or call the Hackney whenever I need to go somewhere unannounced.

Kyle: You see in Texas ....

MSM talking head: You are going to have to change your attitude if you ever want to be on this program again!

Hyle: Okay. So now can we talk about why the ECB cant really issue bonds that anyone but themselves will buy?

MSM talking head: "NO. I WANT YOU .... TO TELL ME .... what you are going to do about the 47 other people who won a car but did not think to bring Jeff Bridges to drive it home for them!!!!!!!"

Kyle: You see in Texas ....

bernorange's picture

Bass kicks ass.  He has a real gift for distilling topics so that the lay person can understand them.  I always enjoy listening to him talk.

I am more equal than others's picture

Hard Talk should be Its hard to think because I'm a shill for the status quo

Henry Chinaski's picture

I would take her on the blue billiard table.

European American's picture

Her hatred for men couldn't have been more obvious. Sign of the times. 


TruthInSunshine's picture




PIIGS+France+UK yell "print, Trichet, print!"

Germans say "not happening"

What will the ECB, Sarkozy, the IMF do?

Will Timmay & The Bernank intervene?

Will generations of Germans be sacrificed in order to kick the PIIGS+France+UK free-rider can down the road for a few more years?

Will the EU tear apart at the seams?

What would Adam Smith, Keynes or Ludwig von Mises do?

Stay tuned for the dramatic conclusion of "As The EU Burns, Bitchez"

Temporalist's picture

I actually thought she was thinking of jumping him.  She couldn't get him on any angle she threw...probably liked being dominated in the conversation.

littleguy's picture

This is typical of the BBC in general. It's a completely leftist organization which is like a broken record. Totally out of touch with reality and business / finance illiterate. 

HoofHearted's picture

"You can't hate the mirror because you're ugly." And I thought it couldn't get any better than the quote about the German pope and Italian Central Banker....Dude would get my vote for most anything.

Oracle of Kypseli's picture

I want to buy a share of that fort in texas. I will supply my own guns

DoChenRollingBearing's picture

+ 1

Me too!  I'll bring my own guns and ammo as well.

mkkby's picture

She wasn't attacking him, idiots.  She was giving him time to answer his most shrill critics.  She kept going back to short selling because he wasn't defending it well enough to flush them entirely.

BigJim's picture

The last thing the statist BBC wants to hear is that it's our beloved governments that have brought all this shit down on our heads.

clawfoot tub's picture

The last thing the beeb wants to hear is that it's the bank employees, better known as "government," that have brought this shit upon us.

FreedomGuy's picture

Exactly, maniac, but even moreso she wanted to say HE was part of the problem creating instability. Firing back with the Greek bank CDS stuff was fantastic but she insisted on just talking over him. She was a perfect example of somebody relatively poorly informed talking to a true financial genius and being too damned stupid to recognize and listen. In some ways she is representative of our idiot governments. She didn't even understand some of the things he said about trading.

I really like how she mentioned naked shorts and CDS bets as taking insurance on things they don't own. I wanted to scream at her that we all own shares in the stupidity of our governments and suffer from their stupid decisions. We are in fact buying insurance on our own financial lives. That's what hedges, gold and even guns for ourselves from our own idiot governments.

This Kyle Bass is one of my new heroes. I love this guy! More videos!



tion's picture

Aye, hats of to Mr. Bass for keeping things classy.

I would love to see this Gem interview that would be quite a show lolz

XitSam's picture

The aggressive tone and stupid questions are what the show's producers (BBC) want based on the audience's beliefs. One of those beliefs is 'making money is bad' when the reality they can't face is 'I didn't make any money because I couldn't recognize the facts.'

We really don't know if she is really that poorly informed or just acting, although I concede she may be.

swissbene's picture

yeah that's boring plus need a clip for the promo.

will the end tonight?  find out in special report at 11...

Rip van Wrinkle's picture

It's the BBC, see. They charge an annual fee and, if you don't pay, you go to prison. Period.

So that's a lot more ethical than someone going out and making their own money, don't you think?

Ghordius's picture

no, I don't think so

the BBC charges you according to a law made in parliament - it's a kind of tax - and the law could be changed

the interview was very good - for all her faults she handled her point badly:

the CDS market is smaller - that's the point - it's a tail that can be used to wag the dog

he is right by pointing that derivatives are legal since 40 years

the point there is that they were outlawed between the thirthies and the sixties for a reason (that should become more clear now)


Archduke's picture

no.  the point is options are *listed*, so you have somewhat of a clue as to volumes, volatility, and pricing,

and (usually) there is no naked shorting so there is some skin the game with margin calls.  Nothing wrong

with a regulated, listed CDS market with central clearing.  which is what they're trying to fix, imho.

akak's picture

... he is right by pointing that derivatives are legal since 40 years

Ghordius, while your English is very good, you made a very common mistake here that many, many other non-native English speakers often also make.  However, you should know that it makes no sense in English to say "since (a certain period of time)" by itself.

What you are actually trying to say should be phrased as "since 40 years ago", or preferably, "For the last 40 years" (although usually when one uses the word "since", they reference a particular point in the past --- as in "since last November", or "since 1971").  Please learn to use the word "ago" --- I've noticed that many non-native speakers (or writers, in this case) seem to have a very hard time with that word, but its use is essential when talking about time in the past in English.

Carry on!

Xavier Doe's picture

Amen... Or even better:


... he is right by pointing out that derivatives have been legal for 40 years


Archduke's picture

-1000 BBC hardtalk.  don't interrupt a speaker when his point is cogent and not redundant.

I'm a huge BBC fan but I'm extremely disappointed by this rude and badgering interviewer.


CORNGUY's picture

Current Status:   

Drinking a 40oz.   Stack of cash and some gold coins on my desk.    I feel nervous, yet secure because of the AR and shotgun in my closet.    Have 3, currently on two of them.


Deflation will get pretty wild.    It will be choas before people start getting jobs and 'recreating' society.    My objective is to have a store of Cash, bullion, and weapons to ride out the fall.   It is only a matter of time before the current governments of the world collapse.   Think about it!   I would guess 80% of US Senators grew up before the internet.   Times change.    But change creates opportunity.    


With a store of wealth (not money, but wealth) you will be ready to ride out a deflationary, macroeconomic collapse.    


At the end of the day, this story has a happy ending.   Governments WILL change, policies WILL change, people WILL change, and life will return to a stable cycle.    However, as always, we will be a capitalist society.   I think, that if you are prepared, the coming apaocalypse is the OPPORTUNITY of a lifetime.   


Cheers Ass Holes

FreedomGuy's picture

This stuff is sometimes called economic porn so you have porn on three screens.

Freddie's picture

When are you going to buy a real rifle like an FN-FAL?

DoChenRollingBearing's picture

+ 1  "Cash and gold is good."

Drinking my ice-cold raspberry vodka mixed with absinthe combo now myself.  My cash and PMs, while not on my desk are pretty close at hand (some anyway).  My 9 mm and AK are a little further away (as my wife does not want them in the house), but I feel OK about that part of the plan.

Cheers back at ya!

GhostTrader's picture

"Capitalism without bankruptcy is like Christianity without hell"

great simile, great interviewee

crappy interviewer (populist/sensationalist)

TheFourthStooge-ing's picture

strannick remarked:

I always thought it was buying a call for the idiocy of the political system

Buying gold is just buying a TDS (truthfulness default swap) on politicians in general.


swissbene's picture

yes but this is ruthless antisocial speculation.  sure wealth preservation turns out real well for gold buyers (and they make a name for self, get invited on tv, etc) -- but does this not risk a self fulfilling prophecy vis-a-vis decline in currencies and political systems?


specious reasoning lesson courtesy of bbc.  a taste of what is comes in the finger pointing stage...

tarsubil's picture

Yeap, there is their reasoning for what they will ultimately do in desperation: these people buying insurance for themselves and families were taking part in destroying the currency and central government - that is, they are trrrrsts and their financial assests have been frozen/taken.

jdelano's picture

this man is my hero.  

Talleyrand's picture

That stupid woman could not keep her moutn shut for more than 60 seconds...too annoying.

Solid's picture

Dead on right!
I have not heard anyone put it so succinctly. He knows of what he speaks.
If I had a million liquid, I'd call him in the morning.

FreedomGuy's picture

Damn! I was thinking the same thing. This guy could manage all my money. He should be advising governments. Actually, he has been on some panels but gets ignored.

1000pips's picture

Bass has been wrong for 3 yrs now. He makes great speeches but his advice yields no returns. Gold will never be currency because you cannot digitize it. Same with silver, just ain't gonna happen. Euro will be 1.40 in a week, take that to the bank.

Mine Is Bigger's picture

You are so right!!!  We can digitize paper currency and coins, but not gold and silver.  That really makes sense!

1000pips's picture

Jewelry is impossible to digitize into currency. Remember, gold & silvers' true worth derives in the fact it is beautiful jewelry. Not that it can be traded for useful living staple, in that case ammo and medical supplies would be worth much more than a Rolex or gold ring. For a situation to get to that point, none of us blogging on this site would still be alive anyway. I suggest investing in Euro and make a ton if money befor Chistmas! Enjoy America!

akak's picture

Shouldn't you be watching a rerun of Jim Cramer's "Mad Money" on CNBC?


PS: Yes, I did give you a red arrow --- asshole.

Oracle of Kypseli's picture

Managing tones of money in a safe manner is not that easy. Even if he is not doing well lately he is not losing and he is balanced.

His thesis of where we are headed is what one admires and the courage to tell the truth as he sees it. As opposed to many hedge fund and mutual fund managers who are co-opted by the banksters and are talking trash.

The exorbitant bonuses in banks and funds are there to discourage whistle blowers.