Posted on 11/04/2022 2:12:47 AM PDT by EBH
The global economy is on the path to hyperinflation and risks societal collapse if soaring prices are not brought under control, one of the world’s biggest hedge funds has warned.
Elliott Management, the hedge fund founded by Wall Street billionaire Paul Singer, hit out at central bank rate-setters in an apocalyptic warning to clients as rate-setters bring the era of ultra-cheap money to an abrupt end.
The world economy faces an “extremely challenging” outlook and hyperinflation could result in “global societal collapse and civil or international strife”, the letter to clients said, the Financial Times reported. It said central banks have been “dishonest” in deflecting blame for the price surge from their prolonged use of ultra-loose monetary policy.
Elliott is one of the most influential hedge funds in the world and is feared in corporate boardrooms for its approach to investor activism.
Central banks are being forced into rapid interest rate rises to tackle inflation with the rate of price growth hitting double digits and a four-decade high in the UK.
The US Federal Reserve voted for its fourth consecutive 0.75 percentage point increase to its benchmark interest rate on Wednesday while the Bank of England followed with a 0.75 percentage point jump on Thursday, the eighth straight increase.
Stock markets have already suffered a tough year as the global economic outlook darkens and interest rates are pushed to levels last seen before the financial crisis. But Elliott believes that investors should brace for a “a seriously adverse unwind of the everything bubble” because of the number of “frightening and seriously negative possibilities”.
(Excerpt) Read more at msn.com ...
He is literally saying worse than the Great Depression.
Let that sink in for a while. If that’s true there is very little the average person can do to protect themselves against this outcome.
Canned goods and ammunition.
You will need decades of canned goods.
I find it interesting they are already saying these things out loud.
Get as much as possible, supplement your diet with wild game.
It could be. One principle in economics is that you can stretch it, but it must return real values.
We have used every economic lever we know about to stretch our economics. Unfortunately, it must return to its real value.
I know how to live as a vagabond for about four days and then I die.
It certainly ties into the possible deception by UFO’s.
Problem is if things truly get desperate, any wild game will be gone within weeks
I think Mr. Elliott is right we are not even in the end of the beginning moment. The Fed, Bank of England, and ECB are way behind what it took to finally end the inflation that plagued the 70s. Yet Central Banks recently released statements claiming they are done with the aggressive rate hikes for now.
There are simply too many chicken littles in the world. It is a constant barage of negative news about things that may happen in the future.
Brilliant essay on the collapse of civilization. Please read and share.
“Collapse of Civilization: Lessons Voters Might Take From Roman Britain”
2 November, 2022
[Conclustion] Of course electricity is only one element of what keeps our society civilized. There’s gasoline, there’s trade, there’s what used to be a widespread respect for the rule of law. Imagine no diesel fuel. Trucks wouldn’t be able to deliver food and store shelves will go bare. You probably have enough food in your kitchen for your family to last a few days or maybe a week at most. Then what? Are you going to grow wheat on your windowsill or in your backyard? Is the neighborhood stray cat going to be your family’s next meal? Do you have a cow for milk? Not to mention medicines, building materials, gasoline for your car… the list of goods delivered via diesel is endless.
One of the downsides of trade, division of labor and economies of scale is that most of us are dependent on others to provide for us those things we don’t produce for ourselves… which is to say, almost everything. Our society is based on a trade system where we get paid to do some things and we pay others to do the things we don’t. It’s a well oiled machine… until it’s not.
And that’s the point. The climate alarmists who want to do away with fossil fuels have no concept of the ramifications of that folly. The equity cultists who want to eliminate the police and “reform” the justice system don’t care about the consequences of that absurdity.
Just as the razor thin layer of atmosphere surrounding the earth sustains life on earth, our modern society thrives thanks to plentiful, inexpensive energy and a respect for the rule of law. Inexplicably, those are the two primary targets of the Democrats who are currently in charge of wide swaths of the United States. Indeed Californians regularly endure the absurd manmade disaster of rolling blackouts while Illinois is about to essentially decriminalize crime. Neither is necessary…
When Americans step into their well lit, safe and private voting booths on November 8th they’d do well to think of those 5th century Britons who were about to careen into a darkness from which it would take almost a millennia to emerge, and vote accordingly.
Please see 14.
Socialism’s great till you run out of other people’s money.
Bull crap. Money is still cheap, historically speaking. It’s just not free anymore. Hedge fund managers will complain because interest is an expense and their costs just went up.
In her defense, she is pretty hot.
Thanks for posting that info.
Last year, local crops were alfalfa, corn, soybeans. Corn was the more abundant. Soybeans 2nd; Alfalfa a close 3rd.
This year, soybeans easily 1st, then corn, and not much alfalfa. That was a reaction to Biden’s domestic fossil fuel decisions - that boosted the cost of producing fertilizer from natural gas. And, in reaction to Biden’s movement against the cattle business (anti-methane nonsense).
The article that you posted, is correct:
“climate alarmists who want to do away with fossil fuels have no concept of the ramifications of that folly”
The hundreds of thousands of tons that have to be moved around, requires fossil fuel powered machinery.
There is an arrogance about the worshippers of “the [climate crisis] data, by those who write “white papers” and engage in a lot of communications.
Their convictions about their work, include - in my view - an excess of assumptions made, because their intellectualism does not have the patience to spend a few weeks in theater, on the farm, and on the by-ways and highways, in the shoes of people who produce food and do the attending work.
The natural design of gathering and using all the working parts that use the earth to grow and raise food, that system’s efficiency, that has evolved over many decades, is assumed by the “intellectual” overlords of “the [climate crisis] data,” to be replaceable and micro-manageable from their desktops at Central Planning.
We went to total fiat money in 1971 so people and banks partied hardy.
The result is similar to what happens when people are encouraged to gamble - they can't quit and many get in over their heads.
Trouble is, they took out loans using the "Full Faith and Credit Clause" (Article IV, Sec. 1) which means on the credit card of "We the People".
Without constraints (like species money) Congress spent like drunken sailors with a bottomless credit card.
"Here come da' Judgement!"
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