Key Words: Kyle Bass On Where The Global Economy Is Headed: This Is Insane

That’s Hayman Capital Management fund manager Kyle Bass talking on CNBC Tuesday about how monetary easing is catching fire around the world and will eventually bring U.S. interest rates all the way down to zero.

“We’re the only country that has an integer in front of our bond yields,” he said. “We have 90% of the world’s investment-grade debt. We actually have rule of law and we have a decent economy. All the money is going to come here.”

Expectations are calling for lower rates again in the U.S. next month, following a cut of 25 basis points in July, according to the CME Group’s FedWatch tool.

When rates eventually reach zero in the U.S. amid slowing growth in Europe and China, Bass warns, it will only fan the flames of inequality in America.

“The unintended consequences of central bank printing are that it makes the rich even richer, it makes the middle class stay where they are and it makes the poor stay poor,” Bass explained to CNBC.

Watch the full interview:

It’s been a rocky stretch for the stock market of late, but Tuesday’s session was relatively mild as the Dow Jones Industrial Average DJIA, -0.40% and the S&P 500 index SPX, -0.62% were both down less than 1%, at last check.

RECENT NEWS

US Stock Market Pulls Back, Ending Multi-Day Rally Amid Inflation Jitters

The US stock market experienced a significant pullback today, ending a multi-day rally as investors grew increasingly ji... Read more

Investor Confidence Boosted As BT's CEO Allison Kirkby Challenges Short Sellers And Raises Dividend

BT Group’s shares have surged by 17% following a series of bold announcements by CEO Allison Kirkby. Kirkby’s assert... Read more

Market Optimism As S&P500 Briefly Peaks Amid Falling Inflation

The S&P500 index saw a brief all-time high as new data revealed a drop in America's annual inflation rate to 3.4% in... Read more

Sony's Strategic Share Buyback: Impact On Stock Performance

In a bold move signaling confidence in its financial stability and future growth prospects, Sony recently announced a si... Read more

The Hidden Costs Of Investing In BDCs

Business Development Companies (BDCs) are often lauded for their attractive yields, appealing to investors seeking subst... Read more

The Case For Hedging Foreign Exchange Exposure Amidst Economic Divergence

In today's global economy, characterized by increasing economic divergence among major nations, investors face a dauntin... Read more