Submitted by Tyler Durden on 05/31/2012
‘If Raoul Pal was some doomsday spouting windbag, writing in
all caps, arbitrarily pasting together disparate charts to create 200 page slideshows,
it would be easy to ignore him. He isn't. The founder of Global Macro Investor "previously
co-managed the GLG Global Macro Fund in
And we see a lot of those.
We are here...
We don’t know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank…
With very limited room for government bailouts, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.
There are almost no brakes in the system to stop this, and almost no one realises the seriousness of the situation.
The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…
Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations
From an EU crisis, we only have to join one dot for a
And then do you think
And then do you think the
That is the end of the fractional reserve banking system and of fiat money.
It is the big RESET.
Bonds will be stuck at 1% in the
The whole bond market will be dead.
Short selling on bonds - banned
Short selling stocks – banned
CDS – banned
Short futures – banned
Put options – banned
All that is left is the Dollar and Gold
It only gets better. We use the term loosely:
We have around 6 months left of trading in Western markets to protect ourselves or make enough money to offset future losses.
Spend your time looking at the risks of custody, safekeeping, counterparty etc. Assume that no one and nothing is safe.
After that…we put on our tin helmets and hide until the new system emerges
And the punchline
From a timing perspective, I think 2012 and 2013 will usher in the end.’