Submitted by Tyler Durden on 11/19/2011 10:34 -0500
Bond
fixed
Greece
Hyperinflation
International Monetary Fund
Keynesian economics
Kyle Bass
When back in May 2010 Greece was bailed out for the first time, the corrupt authorities and the conflicted media said this is the beginning of a new beginning, and soon everything would be fixed. Nothing has been fixed and everything has gotten far worse. Back then we were among the few to point out that the "bailout" was a travesty and that you can't fix an excess debt problem with more debt, yet that has been precisely the methodology of every bailout ever since the first. Unfortunately, the world is caught in a Keynesian paradigm where this is the only recourse to kick the can, unfortunately the strength of every kick is getting weaker and weaker until one day, the can refuses to move, and it is game over. Looking back at this historic period which sealed the fate of the Keynesian system, nobody has caught the paradoxes of the current broken economic and financial model better than Kyle "Nickels" Bass. Below, for everyone's must read pleasure, we once again present his May 11, 2010 letter titled "The Pattern is Set ? Betting the Bank on a Keynesian Free Lunch" which fuses everything that has happened in Europe since then on the fiscal side, and is about to happen on the monetary one. "From now on, it seems everything will be deemed to be a liquidity crisis that will be met with more "bail?outs" and debt financed spending. This will eventually break traction in a violent way and facilitate severe inflation or even hyperinflation. The one thing the EU taught us this weekend is that paper money will be worth less (maybe much less) in the future." And indeed it will, because more than anything, money is increasingly and rightfully seen as the symbol of the free lunch that Keynesian economics promises, after that "just one final debt hit." Is there much or any hope? Not really, but being prepared while watching the inferno blazes soar higher and higher is the best we can all do.
The all-encompassing summary paragraph:
http://www.zerohedge.com/news/blast-past-kyle-bass-was-right-about-everything-again?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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