Sunday, January 11, 2015

"Kyle Bass: Even Norway’s Finances Strained By Oil Below $55"

From ValueWalk:
It turns out that oil prices have gotten so low that even very wealthy nations like Saudi Arabia and Norway are going to have to tap into their sovereign wealth funds to support their annual budgets this year or next. That will likely put Norway in a particularly difficult situation here in a year or so, as by law government spending from oil revenue is limited to 4% of the fund.

Kyle Bass on Norway
Kyle Bass, the founder and chief investment officer of Hayman Capital Management LP, was in Oslo Tuesday to attend a Skagen AS conference. He spoke to Saleha Mohsin of Bloomberg in a brief interview.
Kyle Bass said that Norway “trades like an emerging market because of its dependence on crude,” Billionaire hedge fund manager Bass also noted “A traditional cleansing is a good thing in the long run, it keeps government spending in check. Politicians are going to have to figure out how to cut back on the spending that they shouldn’t have been doing in the first place.”

Kyle Bass also commented he would not be shocked to see oil slide all the way down to $40 per barrel in the next few months.

However, even if Norway does have to make some economic adjustments in the near future, the nation’s wealth puts it in a “spectacular position” for the long run, Bass pointed out. That will be the case for “for many, many years to come,” he said.

Oil is Norway’s main economic engine 
Norway is Western Europe’s biggest oil energy producer, and relies on oil and gas to generate more than 20%  of its economic output....MORE
Previous glimpses into Mr. Bass' thinking:
Hayman Capital's Kyle Bass: Predicting the Next Financial Collapse
Kyle Bass' Hayman Capital's Doomsday Scenario: Japan
Another Look at the Kyle Bass Nickel Trade
Is Hayman Capital Management's Kyle Bass About to Get Crushed in Physical Commodities?

Nah.
However, his plan for world domination may be delayed a bit. Here's the story....  
Kyle Bass' Hayman Capital Management Letter to Investors (Nov. 2012)
Kyle Bass: "We believe that war is an inevitable consequence of the current global economic situation."
Current melt value of U.S. coins via Coinflation:

Lincoln Copper Cent1909-1982 Cent (95% copper) *
$0.01
$0.0185492
185.49%
Jefferson Nickel1946-2014 Nickel
$0.05
$0.0421360
84.27%
Lincoln Zinc Cent1982-2014 Cent (97.5% zinc) *
$0.01
$0.0056082
56.08%
 ...MORE