Paul Singer sees trouble ahead. Elliott Management’s Paul Singer has been an early critic of the central banks’ unprecedented monetary easing policy, which entails keeping interest rates near zero, and trillions of dollars of asset purchases known as quantitative easing (QE), and not to mention the less talked about yield suppression.
So, with the Federal Reserve and their western-aligned sidekicks (BOJ, BOE, ECB) in cahoots with keeping asset prices propped up with their fingers on the currency creation hot-button, what could go wrong?
When the bulls are on shaky ground there is always QE to infinity, and when the fundamentals are good the bulls are running on firm ground, so the central banks have caged the bear market.


“Elliott Management’s Paul Singer has been an early critic of the central banks’ unprecedented monetary easing policy”
WEALTH TRAINING COMPANY
Nevertheless, Billionaire investor Paul Singer sees trouble ahead despite the QE
As we noted above Paul Singer has been an ardent critic of QE.
Back when Bitcoin was a fringe movement and when Fed chair Bernanke implemented QE2 Paul Singer took out an ad in the newspaper saying that Ben Bernanke should go to jail because QE2 was treasonous.
So fast forward and no jail time of any central banker has been reported, and that is no surprise bearing in mind they probably have immunity. Instead, QE2 led to QE3, then operation twist (QE4), and with more QEs than Rocky movies the market has given up counting the number of QEs.
A recent ECB Valentine’s Day tweet gives us some insight into the hubris attitude some heads of central bankers have towards money printing.
“Roses are red Violets are blue We’ll keep financing conditions favorable ‘Til the crisis is through” tweeted the ECB.
But perhaps the tweet should have read, “Roses are red Violets are blue We’ll keep financing conditions favorable ‘Til the euro is through” as suggested by Peter Schiff another critic of QE to infinity.

“Roses are red Violets are blue We’ll keep financing conditions favorable ‘Til the euro is through”
PETER SCHIFF
So that leads us to the crux of the piece why Paul Singer sees trouble ahead.
“Brace for rampant inflation,” warned Elliott Management’s Paul Singer.
“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”.
Paul Singer sees trouble ahead because he believes those at the helm of monetary policy are destined to make the same mistakes that led to a systemic crisis of confidence in the central bank’s fiat debt system
“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” said Paul Singer.
“It is unlikely that these unprecedented and experimental government policies of such gargantuan scope will create the desired result and allow themselves to be able to be unwound without great shock and disruption to the global financial system” – Paul Singer
The greatest monetary easing experiment implemented by central banks is where Paul Singer sees trouble ahead
“It is unlikely that these unprecedented and experimental government policies of such gargantuan scope will create the desired result and allow themselves to be able to be unwound without great shock and disruption to the global financial system” he added.
So, currency debasement, which in its acute form leads to hyperinflation, similar to what was experienced during the hyperinflation crisis, 1923 in the German Weimar Republic is the central theme to Paul Singer sees trouble ahead view.
But surely a century on and central bankers have accumulative monetary policy knowledge to avoid another currency crisis which can lead to economic busts.
Maybe not as the list of recent currency crises triggered by monetary policy is long.
For example, the 1994 economic crisis in Mexico, the 1997 Asian Financial Crisis, the 1998 Russian financial crisis, the Argentine economic crisis (1999-2002), and the 2016 Venezuela and Turkey currency crises were all triggered by out-of-control monetary policy.
A comprehensive list of recent banking and currency crises is provided by ResearchGate here.
Central and South America features predominantly on the list of modern-day banking financial crisis, followed by Asia and Europe.
“inflation is spreading in both scope and intensity. If and when it breaks out in an inescapable broadway, there will be a crowd of seriously confused policymakers making excuses” – Paul Singer
Paul Singer sees trouble ahead and notes that precious metals have yet to shine
“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” said Paul Singer.
Back in 2014 Paul Singer was already warning about inflation and the potential for social unrest
“…inflation is spreading in both scope and intensity. If and when it breaks out in an inescapable broadway, there will be a crowd of seriously confused policymakers making excuses and claiming that inflation does not exist; it is not their fault; it was completely unpredictable; and/or it will be good for people,” he said.
Indeed, that is already happening. ’We should be happier to have a job than to have our savings protected’ said ECB President Christine Lagarde in November 2019.
So here is the take away to Paul Singer sees trouble ahead view
“We believe that if and when inflation goes from being something that affects only a particular list of assets (a growing list, presently a combination of things owned by the well-off plus several things that are necessities) to a widespread “in-your-face” phenomenon affecting the cost of living of almost the entire population, then the normal yardsticks of risk, return and profit may be thrown into the garbage can. These measures may be replaced by a scramble by citizens and investors to preserve value on a foundation of shifting sand, together with societal unrest that may make the current politically-useful “inequality” riffs, blaming the “1%” and attacking those “millionaires and billionaires” who refuse to “pay their fair share,” look like mere warm-ups for real class warfare”.
Could Paul Singer see trouble ahead view already be playing out with a rising global youth protest movement?
In the last few years, there have been students taking to the streets from India to Honduras over the rising costs of education. Most recent Redditor activists have moved their Wall Street protest to cyberspace. Europe, Barcelona also experienced youth riots.