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Faust100F
Advisor

Another interview with Kyle Bass

Reading Zero Hedge this morning, and ran across a video of an interview with Kyle Bass on CNBC yesterday.   He predicted the fall of the mortgage markets years ago and made a fortune.  His economic insights are believed to be more accurate that other talking heads.  He is concerned about Japan tanking within the next 18 to 24 months.

 

 I have posted the article which contains the interview.  This may not be related to Japan, but it might be since Japan (like the US) has cranked up its money printing machine and is now driving down the YEN in an attempt to bolster exports.   However 20% of Japans exports go to China, and China may be seeking to fill those imports from other sources.  

 

If you are an avid follower of Kyle Bass, then this Video may provide more insight into the deterioration of Japan and ultimately the U.S.    Since it now appears we are on a race to the bottom by every central bank printing and  diluting the values of currencies in order to enhance exports, we may soon be facing the same dilemma Japan may soon face.    Enjoy.   John

 

http://www.zerohedge.com/news/2013-01-18/detonating-japanese-debt-time-bomb-kyle-bass

6 Replies
BA Deere
Honored Advisor

Re: Another interview with Kyle Bass

Hey Faust, you give Jimmy Rogers a hard time yesterday? Smiley Happy   Interest on 10yr, US T Notes are at a 200 yr low, when/if rates go up, bar the door Katey!  The interest on the national debt is $220 Billion or $454 Billion annually, depending on who`s doing the figuring  http://www.bloomberg.com/news/2012-03-28/four-numbers-add-up-to-an-american-debt-disaster.html  about $6 Trillion of US debt coming due in the next 5yrs.  We are living in interesting times.

bruce MN
Advisor

Re: Another interview with Kyle Bass

..and here is the sort of  heresy and foo-foo economics that will continue to creep into the public discussion. What making attempts to pull all of that back in will be up against for the next decade:

 

 

http://neweconomicperspectives.org/2013/01/the-great-austerity-swindle.html#more-4523

 

 

It is going to be out there as an option because, in their greed, the investment banks and their games of finaincialization that utilize leverage for the creation of money outside of common, more traditional, conservative means have shown the world that it is possible to do so.

 

They have now established the value of it, not some government or central bank.  It gets made/created out there in the thin stratosphere and everybody else has to try to catch up with it. 

 

 The only way your commentator and the you adherents could possibly see that all leveled out would be for some almost instantanious, black hole creating like contraction event to cause the default marking to market of everything. Back on hard money terms.  None of the floating stuff could be captured in time to bring it to the auction.

 

The political and cultural reality of that is that nobody wants that to happen. Left or right, first world or third.

 

BA..you have said often times here "Bring on the crash and lets' get it over with."  I proposed that back in the Fall of 2008.  Hold a world wide yard sale, but only with the money in the shape it was in then  real time, qualified to bid.  They didn't let it happen and the governments and the central banks damned well could have.  But the controlling private banks prevailed, leaving their playbook open, however.  Now more and more people are starting to understand that, and that's what this crazy sounding article of Pilkingon's is about.  Taking a seat at the table.

Faust100F
Advisor

Re: Another interview with Kyle Bass

BA and Bruce - LOL. He more or less repeated what we have all heard him say on TV.  He showed us his 3 year 230,000 road trip around the world, he then repeated his strong feelings against Burnanke and the FED, and then discussed his strong support for Agriculture and indicated that if you own farmland, or engaged in it, you are in the right place for at least the next 40 years.  

 

I was setting at the table with a fella who was friends with the fella that put this shin-dig on, and he said the fella was wondering if he could get Jim Rogers as a speaker, so he called him up, that night he returned the call, and told him he was on his way back to Singapore, and would be glad to address the group, and he would be available for 24 hours and would do what ever the promoter wanted him to do.   It only cost $100,000. lol. .

 

 Rogers indicated that in 1961 he was last in Iowa, where as a student he and a friend were going farm to farm to sell subscriptions to the Farm Journal, and was arrested by a County Sheriff for what the sheriff believed was an illegal activity, but it was sorted out, and they continued selling subscriptions. ( Of course all of on this site and those present did not have the nerve to tell him he should have been peddling Successful Farming instead of that other magazine which is a "Pretender" of a real farm magazine lol)

 

I agree, we have serious problems, but none of the piedpipers at yesterdays meeting had the guts to talk about the deficit, the escalating debt problem, and the only market for out bonds being the FED.  All they wanted to do was show us the charts that the worst was over and we are in recovery, all indicators were pointing upward.  

 

Well, I sat there and listened to them "pumping up the crowd".  I did not want to ruin their little party with all the farmers in the room feeling rich, or my son who was reassured that his business of building and restoring

older homes for rental properties was the right place to be right now.

 

Most of the speakers indicated that the party may soon be over and low interest rates may be in the past, since most believe a gal from San Francisco will become our new FED Chairman, next January.  

 

I have seldom seen such optimism in the speakers at one event (other than Jim Rogers who was the only gloom and doomer there besides me).  All their charts were showing positive signs of improvement, of course, in Iowa we are a rural backwater, so not much really changes here.  When the interest rates start to rise, lets say just 2% their little charts will be headed south.  

 

Of course all of our problems could be solved, if Blackbarry just printed up 17 trillion dollar coins and dropped them on the FED as legal tender of the United States and we are out of debt in this country.  But the FED our only private US Corporation that does not pay taxes, Nixed that Idea.  

 

So now we really knows who runs this country, it is not elected officials. I mean . . . the only one that really gets hurt if the US Treasury pays off the FED with legal tender created by our treasury is the FED, they just would not be collecting all that interest on the paper they print whenever they want. They do not know we hace a debt bomb on our hands.     http://www.youtube.com/watch?v=LJw-LrudLKY&list=LLbndvEtGYh8zxkL9QhZZusw  

 

By the way I did not see any Lamborginis in the parking lot. LOL. John

 

BA Deere
Honored Advisor

Re: Another interview with Kyle Bass

Hey Bruce, just a few things to chew on, what is austerity?  To some, any cutting of social spending or not allowing growth of "baseline spending"  would be called "draconian austerity measures".  If we wanted to make the most out of our "wristbands for unlimited rides at Valley  Fair" we really shoul`ve paced ourselves and not filled up on malts and cottoncandy when our parents dropped us off at the gate.  I am a bit of a chickenhawk when it comes to bringing on the crash, oh I talk tough, but I really don`t want to see the real pain that it will cause. Nox with banty around a "jubilee" and others will talk of minting $1 Trillion coins, all of those courses will have unforeseen consquences the day after they`re implemented.  Since we collectively choose this Keynsian route, we should`ve at least been smart about it, instead of healthcare and intangible spending, we should`ve built roads, bridges and ungraded locks and dams on our rivers, that way during the tough times ahead we`d at least have a infrastructure to rebuild.  I mean we have a $16 Trillion national debt ...we fought some wars, handed out entitlements, but what do we really have to show for it.  If I recall the bankruptcies that a farmer could take(before the taxpayer debt write-off in the 80`s)  a farmer was allowed to keep 40 acres and his house....so if you were a farmer on the rocks back then, the smart guy would`ve built the fertility on that 40 acres and tiled it real good and added on and remodeled his house.  Any monies that that broke farmer would`ve spent beyond that was just throwing money away.  There are 2 kinds of people that go bankrupt, those that plan it and come out smelling like a rose and those that really end up scratching manure with the chickens...the way it appears the US government will be the latter.

BA Deere
Honored Advisor

Re: Another interview with Kyle Bass

I was north of you about 130 miles Faust at Diamond Jo Casino with the Hefty Bros Smiley Happy  they are rockstars, man the room was packed over 500 people.  I think that a guy from here forward with have to concentrate on tax avoidance, these county supervisors are licking their chops on raising property tax...the feds push spending to the state and the state to the county with unfunded mandates and the poor sucker with land will get stiffed with the tab.  And if you dodge and duck the taxman, they`ll get you in the end with the death tax, local paper had a slough of property transfers in December all repositioning themselves for what`s ahead.   This is why liberals can smartly say "If you hate it so bad here, why don`t you move!" well they know you can`t pack your 80 CSR land in a suitcase and move to the Cayman Islands or Singapore and if you could, they`d be sure to sock you with an "exit tax".

kraft-t
Senior Advisor

Well, do you think

That you should be able to exit without paying your share of the debt? 16 trillion $$ in debt and you want to walk away from it. And you complained about the farmers that got the write off in the 80's.