The Fallacy of the Fed

Texas-based hedge fund manager J. Kyle Bass, the founder and chief investment officer of Hayman Capital Management and founder of private equity firm Conservation Equity Management, joins Julia La Roche for a wide-ranging discussion on macro, geopolitics, and the rising threat of China. 

0:00 Intro 

0:35 ‘Out of body experience’ meeting with former central bankers, academics

3:30 Fed is ‘completely out of touch with reality’ 

5:30 This has nothing to do with the Phillips Curve 

6:58 Chain-weighting inflation 

9:57 Frictions in society 

12:15 Heading toward a recession 

14:15 Commercial real estate 

19:22 Yellen’s trip to China

26:00 Wall Street greed 

21:03 Is the business community waking up? 

26:20 Exposure to China

28:00 Risk of invading Taiwan 

30:00 Talk about what Xi Jinping says 

34:00 Should be ringing alarm bells about China 

38:00 Need peace through strength 

41:00 Economic War Department is needed

44:00 We sit at a hinge in history right now