A Kyle Bass Letter About Friedrich Von Hayek And Franz Kafka | Exploring Markets

A Kyle Bass Letter About Friedrich Von Hayek And Franz Kafka

Friedrich von Hayek's “Road to Serfdom” was published in 1944. Its message was that all forms of socialism and economic planning lead inescapably to tyranny.

"Central bankers are feverishly attempting to create their own new world: a utopia in which debts are never restructured, and there are no consequences for fiscal profligacy, i.e. no atonement for prior sins. They have created Potemkin villages on a Jurassic scale."
Kafka's writing has inspired the term "Kafkaesque", examples include instances in which people are overpowered by bureaucracies, often in a surreal, nightmarish milieu which evokes feelings of senselessness, disorientation, and helplessness. Characters in a Kafkaesque setting often lack a clear course of action to escape the situation.
"Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation."

Kyle Bass Letter to Investors