Kyle Bass took the time to speak at the Myron Scholes Global Markets forum last week in Chicago. The embed link is not available, so I cannot post it here, but you can hear its entirety by following this link:
Kyle Bass Speaks In Chicago
Kyle discusses much of what you have heard and read here over the past few months. For a written and visual primer on the coming collapse in Japan please see:
2013 Outlook: Japan's Government Debt Bomb Goes Off
In the discussion he moves further beyond his normal scope (because he is speaking to a higher level financial group), and he even goes into some detail on his current trade against Japan. He describes it as almost the same exact trade he put on in subprime in 2006 where he bought protection against the debt in the derivatives market (becoming a billionaire household name). He goes on to say that if Japan stays at a flat line some young kid working at a bank gets a bonus check on the year. If Japan rates move just a little then that young kid that sold him the debt blows up the bank. This is exactly what happened in 2008.
He says that some of these banks are now calling him and asking him to close his position, just as they did in 2007, as more and more people realize what is coming in Japan.
The number one investment the average person around the world can make today? He would buy gold in Japanese Yen and go to sleep for ten years. "You can wake up 10 years later and be okay."
Once the understanding of a real (impossible to bailout) government debt collapse sets in to the mindset of Japanese citizens you will see a rush to gold in the country that will be just incredible. Those that have just a small amount of foresight will be able to extrapolate forward and see that the balance sheet of the United States is also insolvent. Some of the strongest investors, such as Kyle Bass, have looked down this path and are already buying gold today ahead of the world wide rush.
He notes that you will never get a signal that this trouble is coming from the government. The Mexican government made a public statement that they would never devalue their currency the night before they devalued their currency by 60%.