Zero Hedge: “As Singer admits in Elliott’s Q2 letter to investors, what the fund, up 6% YTD, is seeing, is “the most peculiar period we have faced in 39 years.” The details are familiar to those who have read Singer’s previous laments (most recently here) on central planning: too much central bank power, too much monetary debasement, inevitable inflation, and “when it happens it could be swift and impossible to tamp down.”
Not surprisingly, Singer touches on a very popular topic in a world of nearly $14 trillion in negative yielding bonds, namely the scramble for safety, and surprised by the “continued stampede” to buy such bonds, he says that today’s environment marks “the biggest bond bubble in world history”, leading him to declare that “the global bond market is broken.”
Opinion: Paul Singer is an American hedge fund manager, activist investor, and philanthropist. His hedge fund, Elliott Management Corporation —specializes in distressed debt acquisitions.
Paul Singer, like most investors, is perplexed. How can the equity and bond markets continue rising on printed (fiat) money?
How can the Fed raise interest rates, when the only rise in a decade was .25%, and it almost cratered the equity and bond markets?
Typically, stocks and bonds go in opposite directions making balanced mutual funds a safe conservative investment. But is anything safe if interest rates were to suddenly rise because foreign investors lack faith in US monetary policy?
Newsflash: Both US presidential candidates are talking of increasing debt.
Bible prophecy students know that at some point there will be a sudden global economic collapse (hyperinflation) like Paul Singer is worried about, albeit for different reasons.
Bible Prophecy students also know that a financial collapse is prophesied in the third rider of the apocalypse (Rev. 6:5-6) meaning that the advent of Antichrist (Rev. 6:1-2) and war (Rev. 6:3-4) will have already occurred.
And Dispensational Theology students can be confident that before the judgments of Revelation 6, Jesus gave John the words of Revelation 3:10 “Because you have kept My command to persevere, I also will keep you from (Greek ‘out of’) the hour of trial which shall come upon the whole world, to test those who dwell on the earth.”
As Paul, the Apostle to the early Church, said “Comfort one another with these words”.
(Thanks to Vason for sending this in)