Kyle Bass on where the global economy is headed: ‘This is insane’

Via Marketwatch

‘This is insane. The Japanese are going to keep going. The Chinese print money like it’s a national pastime today. Europe is going to restart QE.’

That’s Hayman Capital Management fund manager Kyle Bass talking on CNBC Tuesday about how monetary easing is catching fire around the world and will eventually bring U.S. interest rates all the way down to zero.

“We’re the only country that has an integer in front of our bond yields,” he said. “We have 90% of the world’s investment-grade debt. We actually have rule of law and we have a decent economy. All the money is going to come here.”

Expectations are calling for lower rates again in the U.S. next month, following a cut of 25 basis points in July, according to the CME Group’s FedWatch tool.

When rates eventually reach zero in the U.S. amid slowing growth in Europe and China, Bass warns, it will only fan the flames of inequality in America.

“The unintended consequences of central bank printing are that it makes the rich even richer, it makes the middle class stay where they are and it makes the poor stay poor,” Bass explained to CNBC.

Watch the full interview:

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9 Comments
Anonymous
Anonymous
August 21, 2019 8:39 am

.

SmallerGovNow
SmallerGovNow
August 21, 2019 8:49 am

Thanks for posting this interview. Would never have seen it as I refuse to watch any of the MSM period. Kyle has valid observations and the bit on Hong Kong and China were very interesting… Chip

TN Patriot
TN Patriot
  SmallerGovNow
August 21, 2019 4:17 pm

I watch CNBC almost every morning until shortly after the market opens. They have some really good guests on and there is very little politics.

Anonymous
Anonymous
August 21, 2019 8:55 am

So what should the middle class do about it, Mr. Bass?

Years back, he shorted the Yen, and Shinzo is still juggling and spinning plates on sticks over there.

Maybe one day indeed, the circus will crash down and shatter, as predicted.

For now, the mirage is still effective.

Kyle also bought a boatload of nickels, if I remember. As Gary Gibson, the writer on the older editions of Whiskey and Gunpowder advisory noted, the older nickle coins contain more of its namesake metal than 5 cents worth.

Bass is wealthy, and smart about investing markets and fiscal policy.

Help out the little guy more, Kyle.

Give us some action steps to increase our chances to survive.

TN Patriot
TN Patriot
  Anonymous
August 21, 2019 4:20 pm

As an old friend once told me about investing:
When you hear it on TV, it is already too late to make any money and all you will do is make someone else rich as you buy their position.

Hollow man
Hollow man
August 21, 2019 9:08 am

We have rule of law. Lol. That’s funny

overthecliff
overthecliff
August 21, 2019 9:38 am

I am selling bonds that guarantee that your money will be in your hands. Simply send me 2% of your money and put the rest under your mattress. What a great deal for you and your money will still be in your hands no fees no paper work just send me the 2%. Llpoh, I know you would love a deal as secure as this . There is no limit to the amount money you can invest in this scheme. Just send me the the negative interest.

Ham Roid
Ham Roid
August 21, 2019 5:50 pm

“The rich get richer. The middle class and the poor stay the same.” Really? From where do rich slobs get their new ill gotten gains?

Answer: From you and me.