Home » Posts tagged 'paul singer'
Tag Archives: paul singer
‘Brace For Rampant Inflation’: Hedge Fund Billionaire Stunned At “Market Craziness”, Sees “Trouble Ahead”
‘Brace For Rampant Inflation’: Hedge Fund Billionaire Stunned At “Market Craziness”, Sees “Trouble Ahead”
In 2012 Elliott Management’s Paul Singer correctly warned that financial system leverage and technology would “serve as an accelerant in the next crisis”:
“The major message that I want to give you (and I’ve invited challenge on both parts of my thesis here and I’ve never had anybody challenge it): The major financial institutions in the US and around the globe are utterly opaque; and The next financial crisis will happen faster, more suddenly.“
Risk did indeed happen fast, numerous times since.
In 2014, Singer went more aggressively after the central banks and their arrogant largesse:
“There is no reason to suppose that they [central bankers] understand the modern financial system and economy to any greater extent than they did in 2007 (that is to say, not at all). Nevertheless, they plow ahead, expressing total confidence that what they are saying and doing is wise and not dangerous drivel.”
…
“It is unlikely that these unprecedented and experimental government policies of such gargantuan scope will actually create the desired result and allow themselves to be able to be unwound without great shock and disruption to the global financial system.”
His solution at the time:
“Although the levitation of financial assets has yet to levitate gold, we will grit our collective teeth on that score and await either ‘asset price justice’ or the ‘end times,’ whichever comes first.”
Justice was to come a couple of times since.
Interestingly, 2014 was when Singer began to warn about inflation and the potential for social unrest:
…click on the above link to read the rest of the article…
Sounding The Alarm On The Country’s Vulnerability To An EMP
Sounding The Alarm On The Country’s Vulnerability To An EMP
Last year, Elliott Management’s Paul Singer highlighted “one risk that stands way above the rest in terms of the scope of potential damage adjusted for the likelihood of occurrence”– an electromagnetic pulse (EMP). As Michael Snyder previously details, our entire way of life can be ended in a single day. And it wouldn’t even take a nuclear war to do it. All it would take for a rogue nation or terror organization to bring us to our knees is the explosion of acouple well-placed nuclear devices high up in our atmosphere. The resulting electromagnetic pulses would fry electronics from coast to coast.
As PeakProsperity.com’s Chris Martenson explains, the country is extremely vulnerable to an EMP…
In the past here at Peak Prosperity, we’ve written extensively on the threat posed by a sustained loss of electrical grid power. More specifically, we’ve warned that the most damaging threat to our grid would come from either a manmade or natural electromagnetic pulse (EMP).
A good friend of mine, Jen Bawden, is currently sitting on a committee of notable political, security and defense experts — which includes past and present members of Congress, ambassadors, CIA directors, and others — who are equally concerned about this same threat and have recently sent a letter to Obama pleading for action to protect the US grid.
Before we get to that letter, here’s a snippet from what we wrote on the matter roughly a year ago:
…click on the above link to read the rest of the article…
Paul Singer Warns “The Consequences Of Monetary Manipulation Are Unknowable”
Paul Singer Warns “The Consequences Of Monetary Manipulation Are Unknowable”
The world believes it is in a sweet spot. There is global consensus that central banks know what they are doing and are in control, and that if economies falter, a bigger dose of QE or ZIRP or NIRP (negative interest rate policy – we just made that one up) will keep it from getting out of hand. Additionally, there seems to be a universally held belief that the U.S. is unquestionably the safe haven for the foreseeable future, that its financial crisis and long recession are behind it and that China has complete control over its own destiny. It may not surprise you to learn that we either disagree with or remain unconvinced about every one of the foregoing propositions.
Conditions in the global economy are clearly abnormal. The policymaker response to those conditions is extraordinary, with minimal focus on an all-out push for higher growth. Instead, the primary focus is on boosting “inflation” with repeated doses of bondbuying, stock-buying and super-low interest rates. We cannot appreciate why policymakers are not jumping up and down clamoring for structural pro-growth reforms and policies, and why there is a compliant consensus that the only policy that is possible is more monetary easing. Apparently, most politicians are happy to leave the hard economic and policy decisions to their central banks instead of introducing legislation to properly address the world’s economic problems. It is impossible to assess what will change or destroy the consensus that current policies will hold the global economy and financial system afloat forever, but when assessing the scope and shape of risks to our assets, it is most useful to match them to the size of the aberrations which could cause reversal or surprise. Today, those potential changes are strikingly large.
We have frequently said that real deflation (price and credit collapse, not a tiny downturn in aggregate prices or “insufficient” inflation) is impossible. Governments are too alert to that possibility, have no compunction about debasing their currencies and will simply not stand for seriously-falling prices. The issue of real inflation, at the other end of the spectrum, is deemed by just about everyone but us, plus a few beleaguered stragglers and fellow travelers who “didn’t get the memo,” to be a non-issue into the future as far as one can peer.
…click on the above link to read the rest of the article…
