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Nassim Taleb: The Next Black Swan

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Posted on March 13, 2012

In case you missed Nassim Taleb’s interview on CNBC this morning.

He endorsed Ron Paul and is a bit cryptic in his four points, one of which,  that a sovereign debt crisis is coming to the United States.   Rather than doing the necessary “root canal” to deal with the economy’s structural problems,  the government is giving Novocain in the form of large budget deficits,

You have to start with government budget that is in control.  You start with that.   It’s unconditional.  You don’t gamble with future generations’ money and you don’t gamble with hyperinflation.  You want the government first, like we’re doing with the Greeks. We’re doing it to the Greeks.  We should do it to ourselves.  You start with that.  That’s 90% of the problem.

Click here for full interview.

or (copy and paste) link below.

Source

Definition of ‘Black Swan’
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.

Kyle Bass Explains Why He Had The University Of Texas Take Physical Delivery Of $1 Billion In Solid Gold

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Linette Lopez | Mar. 12, 2012

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.

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 monetize 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.

Read more: BI

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