Kyle Bass is a Texas hedge fund manager who predicted the U.S. subprime housing crisis and made millions from being right in his predictions. He is now betting on the collapse of entire countries in Europe. Many of his predictions are frightening, but as you’ll see in this interview on the BBC’s Hardtalk, they make complete sense when he explains his reasoning. Among other things, he predicts that:
- The European Union will collapse
- The Japanese economy will also collapse due to its high level of debt and a shrinking population base, which is unable to service that debt due to its aging demographic and xenophobic immigration policy
- Governments around the world will try to print their way out of debt. That is, they will pay their debts by printing more paper money. Fiat currency will eventually be seen as worthless leading to its eventually collapse as a medium of exchange.
- Consequently, Bass sees the only reliable investments as being guns and gold. “Gold” because of the impending collapse of fiat currency as an exchange medium, and “guns” because of the impending social unrest resulting from the collapse of governments around the world.
Here it is from the man himself in this interview with the BBC’s “Hardtalk”:
BBC’s Hardtalk – Interview with Kyle Bass (Part 1)
BBC’s Hardtalk – Interview with Kyle Bass (Part 2)
A detailed analysis of the subject matter Bass discussed in this interview is contained in this November 2011 report to the shareholders of his hedge fund, Hayman Capital Management L.P. It makes for very interesting and insightful reading.