We already know that Hayman Capital’s Kyle Bass is getting ready for the worst. Case in point, he keeps all kinds of weapons on his Texas compound and he’s buying up nickels because he believes the coins will eventually be worth more than 5 cents. (Learn more about Bass’ fascinating quirks here).
He’s also bullish on gold, and he reminded CNBC why in an interview today:
“The pattern is set, we’re going to continue to monetise fiscal deficits by expanding central bank balance sheets… I call it creating money out of thin air.”
He believes this so fully that while he was on the board of the University of Texas, he had them take physical delivery of $1 billion in gold. You can watch him explain why in the video below (via CNBC), but in a nutshell, he figured out that it would be much cheaper to store it.
And for the record, Bass doesn’t advocate going back to the gold standard, he thinks that’s impractical. Instead, he believes our economy should be tied to a basket of goods and services.