'..societal collapse if soaring prices are not brought under control .. The “everything bubble” refers to the surge in a range of investments, including stocks, bonds and house prices, since the financial crisis after central banks left interest rates at rock bottom levels for years and cranked up the printing presses under quantitative easing.''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.
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The “everything bubble” refers to the surge in a range of investments, including stocks, bonds and house prices, since the financial crisis after central banks left interest rates at rock bottom levels for years and cranked up the printing presses under quantitative easing.
Investors should not believe they have seen everything from previous financial crises, the letter warned. The sudden end to cheap money has “made possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period”.'
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World ‘plunging towards societal collapse’ as era of cheap money ends, November 3, 2022
Context(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'(Global Stagflation) - '..Powell’s statement is totally inconsistent with Paul Volcker’s final say on monetary economics..'(Banking Reform) - 'Disaster is a strong but appropriate word that applies perfectly to the state of U.S. monetary policy..' - Dr. Hunt(Global Stagflation) - 'German inflation soared to double-digit levels for the first time in more than 70 years..'