Submitted by Tyler Durden: Quantitative easing is nothing but "competitive devaluation,"
Kyle Bass begins this brief but wide-ranging interview; and while no
central bank can explicitly expose the 'beggar thy neighbor' policy,
they are well aware (and 'banking on') the fact that secondary or
tertiary effects will lead to devaluing their currency. The bottom line,
Bass warns, is "when the globe is at 360% credit market debt-to-GDP, there is no real way out."
Furthermore, the winds of austerity have already blown (simply put no
nation engaged in austerity prospectively - for the nation's betterment -
they were forced by the bond markets) and with central bankers now
dominant - the Krugman-esque mentality of "let's just keep going," is very much in the driver's seat since politicians now see "no consequence for fiscal profligacy."
The average investor, Bass adds, "is at the mercy of the central bank
puppeteers," as the Fed's policies are forcing mom-and-pop to "put their
money in the wrong place at the wrong time." There will be consequences
for that... there is only one way this will end... "and investors should be really careful doing what the central bankers want them to do."
Forward to 38:31 for Kyle Bass' interview...
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