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The Head Of The World's Biggest Hedge Fund Sees "Economic Collapse" Due To Money Printing By Early 2013

Tyler Durden's picture


As part of its most recent issue the New Yorker has released a must read interview with Ray Dalio - head of the world's biggest hedge fund, Bridgewater. Dalio's fund, which according to some may now be as large as $80 billion, continues to outperform even in this problematic environment, indicating that unlike various other managers who shall remain nameless, and whose wealth is built up almost exclusively on one trade (and that belonging to someone else in the first place), Dalio, despite rumors that he is preparing to leave his current position and is actively seeking a replacement, is still keenly able to adapt to changing macro conditions. Which is why his warning about future rounds of QE, which he sees as a certainty, should be heeded. Especially since it conforms 100% with the warnings of Zero Hedge - Dalio believes that future inevitable money printing will "lead to a collapse in currencies and bond markets." Dalio is even kind enough to give a time frame. "I think late 2012 or
early 2013 is going to be another very difficult period.
" He is, to say the least, quite diplomatic.

From the full interview:

Dalio believes that some heavily indebted countries, including the
United States, will eventually opt for printing money as a way to deal
with their debts, which will lead to a collapse in their currency and in
their bond markets
. “There hasn’t been a case in history where they
haven’t eventually printed money and devalued their currency
,” he said.
Other developed countries, particularly those tied to the euro and thus
to the European Central Bank, don’t have the option of printing money
and are destined to undergo “classic depressions,” Dalio said. The
recent deal to avoid an immediate debt default by Greece didn’t alter
his pessimistic view. “People concentrate on the particular thing of the
moment, and they forget the larger underlying forces,” he said. “That’s
what got us into the debt crisis. It’s just today, today

assessment sounded alarmingly plausible. But when one plays the global
financial markets a thorough economic analysis is only the first stage
of the game. At least as important is getting the timing right. I asked
Dalio when all this would start to come together. “I think late 2012 or
early 2013 is going to be another very difficult period,” he said.

Translation: enjoy your -0.002% Bills and paying uncle Sam to hold your money while you can.

h/t A B


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Mon, 07/18/2011 - 15:58 | 1467738 carbonmutant
carbonmutant's picture

Optimistic at best...

Mon, 07/18/2011 - 16:02 | 1467761 Pladizow
Pladizow's picture

What are Bridgewaters postions, i.e., Gold Silver etc......?

Mon, 07/18/2011 - 16:13 | 1467813 Highrev
Highrev's picture

Is this starting to get top billing on the nightly news over there in the States?

It is over here in Europe.

That's usually a strong indication that a short term bottom is not far off.

Mon, 07/18/2011 - 16:36 | 1467885 trav7777
trav7777's picture

I'll take Pladizow's avatar as my "short term bottom"

Mon, 07/18/2011 - 16:44 | 1467915 Cash_is_Trash
Cash_is_Trash's picture

Such supple breasts...

If only default had such a nice landing.

Hard assets on boobies, boobiez

Mon, 07/18/2011 - 20:51 | 1468618 Zeilschip
Zeilschip's picture

This is an easy call that will never be verified as it takes place after the Maya 2012 apocalypse. I'm serious.

Mon, 07/18/2011 - 21:58 | 1468814 Lets_Eat_Ben
Lets_Eat_Ben's picture

I'm curious, how do you live your day-to-day life if you seriously think late 2012 is the end of man/world/universe?


Mon, 07/18/2011 - 23:36 | 1469062 tip e. canoe
tip e. canoe's picture

the Mayans never said it was the end of the world, just an end of a 5,000+ year old cycle.

Tue, 07/19/2011 - 00:58 | 1469230 FlyPaper
FlyPaper's picture

Had to laugh.  Author suggests that you can buy gold, but it has risks... each supposed risk for gold was pretty much the same for Treasuries:

a)  Gold - "No intrinsic value" ( vs. Treasuries backed by an insolvent govt)

b)  Gold - Doesn't pay dividends (wow! Treasury yields .01%)

c)  Gold - Is at an all-time high (... so are bonds. Duh)

d)  Gold - Doesn't offset inflation very well (? and bonds do?)

Wisdom from the wall-street crowd....


Mon, 07/18/2011 - 22:41 | 1468935 FeralSerf
FeralSerf's picture

Isn't the (allegedly predicted) Maya 2012 apocalypse late 2012 also?

Mon, 07/18/2011 - 23:29 | 1469038 cosmictrainwreck
cosmictrainwreck's picture

Winter Solstice Dec 21

Mon, 07/18/2011 - 16:44 | 1467917 Liquid Courage
Liquid Courage's picture

Take a closer look. That bottom's actually a top. Stealth aereoli.

Mon, 07/18/2011 - 16:56 | 1467948 I think I need ...
I think I need to buy a gun's picture

i don't believe any of these guys....

the crisis is now and coming within 1-2 weeks.....i think obama revalues gold all at once.

buffett that jerkoff just said we need something big well we are going to have something big.

enough of the bs how much is physical gold worth in the us and then lets move forward with rebuilding the country...

Mon, 07/18/2011 - 18:02 | 1468114 i-dog
i-dog's picture

"the crisis is now and coming within 1-2 weeks"

No way. They've got lots of options to kick the can...and they will kick it...stabbing repeatedly at the 'print' button being the most obvious. This guy's estimate of end-2012 seems spot-on to me. It also happens to coincide with TPTB's timetable for a collapse into a police state. So, relax and warm another bowl of popcorn.

"lets move forward with rebuilding the country"

Riiiiiight. All you have to do is convince 320 million shopping and teevee addicts to get rid of the Federal Government (and all of its handouts) in its entirety and we can get cracking on it! However, be advised that 535 congress critters will, of course, be resisting this effort and running multi-million dollar teevee campaigns, generously financed by the TBTFs, aimed at those 320 million shoppers to convince them that everything is under control and that there is absolutely nothing to worry about. [Transitory] Shared Sacrifice...Hope and Change...Bright Tomorrow [after the Soft Patch]...For The Children...Gawd Bless Merkah!

So, do you have a Plan B?

Mon, 07/18/2011 - 18:50 | 1468264 Milestones
Milestones's picture

Damn rebel cynic!      Milestones

Mon, 07/18/2011 - 18:59 | 1468290 Michael
Michael's picture

I never make a hard date call on economic collapse events, but since this upcoming one is the big one, I'll go out on a limb for the big event.

October 10, 2011 Columbus Day will be a major bond and stock market crash and burn date of biblical proportions.

There will be a few major dislocations before that date which may seem to be the big on, but it's not. October 10, 2011 is the big crash day.

Mon, 07/18/2011 - 19:34 | 1468388 IQ 145
IQ 145's picture

 I think the bullshit will go on and on for years. When Gold gets to around $5,000/oz. people will be seriously nervous in the service; right now the majority still have belief system intact from the previous reality.

Tue, 07/19/2011 - 00:08 | 1469128 DoChenRollingBearing
DoChenRollingBearing's picture

I'm with the smart guy on this one.  Probably yerars and years.

Perhaps gold makes its move to $55,000 once it has reached $5000.  FOFOA sez it could happen at moment, now, or in a few years.

Tue, 07/19/2011 - 02:12 | 1469313 Michael
Michael's picture

I just thank God the debt ceiling will be raised to infinity and QE3 will start right on cue.

I need the biggest bang of an economic bust there can possibly be. My doctor prescribed it for me and my life will not be complete without it. 

Tue, 07/19/2011 - 02:41 | 1469337 Michael
Michael's picture

Wall Street has become evil, pure evil.

It wasn't always that way.

In the past it took its lumps like in so many times past.

But now it has figured out a way where it doesn't have to take any lumps it don't like.

A populist uprising could arrive between Main Street and Wall Street. 

Tue, 07/19/2011 - 00:19 | 1469156 cosmictrainwreck
cosmictrainwreck's picture

yeah... as a poster way down below says "it's the slowest plane crash I've ever seen/been on" Also reminds me of observer remarking few years ago "I'd predicted the end, but I grossly understimated the magnitude of perverse creativity of TPTB" (words to that effect)

Tue, 07/19/2011 - 00:32 | 1469186 Bananamerican
Bananamerican's picture's the ONLY thing you can say in Bernanke's defense...instead of a needle dive into the ground we get a "controlled" crash into terrain....."bankers and women 1st"....

Mon, 07/18/2011 - 20:24 | 1468529 Pinktip
Pinktip's picture

I'll go OT tinfoil with the Mayan calendar as Oct 28 2011 not 12/21/12

Look it up or youtube "In Search of" with Lenard Neimoy (sp) Mayan

from the late 70's.

And for what it's worth, the Porter Stansbury adds that have run for

+8months straight on the economic collapse.......

Mon, 07/18/2011 - 20:54 | 1468627 Hooter Shaker
Hooter Shaker's picture

I listened to his ad.  He almost had me.....then he asked me for money.

Mon, 07/18/2011 - 22:02 | 1468825 wisefool
wisefool's picture

If G.E. /FoxNews/Warren Buffet/_______ Do not pay taxes commensurate with the complexity required to vet their tax bill. Then where does the money come from to pay the IRS agent who inspects their tax bill?

-- Aristotle.


Tim Geithner is the only man for the job.

-- Obama. 2009.

Tue, 07/19/2011 - 04:46 | 1469383 Roger Knights
Roger Knights's picture

A few days ago S&P threatened to lower Treasuries' rating by a notch within three months if no long-term fix to US debt is agreed to by both parties. That's unlikely, so an S&P downgrade, if it happens, would occur around Oct. 10.

Tue, 07/19/2011 - 01:13 | 1469252 Oh regional Indian
Oh regional Indian's picture

I do.


Tue, 07/19/2011 - 03:17 | 1469370 i-dog
i-dog's picture

Hehehe ... creative and adaptive individualists always have a Plan B ... collectivists, not so much -- they're just transfixed in the headlights waiting to follow their next 'leader' (known as a 'decoy' to the rest of us)!

Tue, 07/19/2011 - 06:24 | 1469431 BigDuke6
BigDuke6's picture

Hey ori

its getting safer to return to the usa


Tue, 07/19/2011 - 05:45 | 1469414 Incubus
Incubus's picture

No way. They've got lots of options to kick the can...and they will kick it...

They'll have Chuck Norris roundhouse kick the can before they let stuff collapse before it's been thoroughly looted.

oh, yeah... I just went there.

Mon, 07/18/2011 - 19:16 | 1468338 Hard Assets
Hard Assets's picture

Tell me what you think of this idea.....time to 'cut' a global deal.

Pick a date, say Aug 1., 2011.  (just less than 2 weeks).

Every county gets to issue itself $1T in its own currency. ($5T? $10T?)

So the US gives itself, $1T, the ECB gives itself $800B (or whatever the exchange rate is at that moment), Japan $1T in Yen and so on and so forth with every country.

Three conditions:

  1. All issued money must immediately pay down sovereign debt.
  2. The top level government of the country, must legislate new internationally agreed, banking reform as per a "globally accepted template".
  3. The banking system within each country will be informed of the changes. The banks will serve the public, the government will serve the public. The days of bankers serving the elite is over. Any banker found of misconduct will be jailed.

Personal note:

Bernanke's personal mission is that there "will be no deflation on my watch". Expect global QE3 and prepare. Fix interest rates on debt at a minimum. For the adventurous, acquire fixed debt and invest in an inflation instrument.

I have 50% net worth cash, 50% net worth gold and silver bullion. Here's a funny one, does this make sense? Suppose I have $500,000 cash and $500,000 bullion. If one doubles and one halves, don't I have $1,250,000?

Blow it up, either way.

Bring it on !



Mon, 07/18/2011 - 19:47 | 1468429 Al Gorerhythm
Al Gorerhythm's picture

Ahhhh......., the Nominal Amount deception still clings to wealth perceptions. 


Mon, 07/18/2011 - 20:04 | 1468474 Diogenes
Diogenes's picture

Lets see..... Im overdrawn on my bank account so I will just write a check on my account and deposit it in my account. That will cure the overdraft.

Then, I will promise not to overdraw my account again. Seriously, this is the last time. Unless its like, you know, an emergency. Or I need to buy something real bad.

Dont see why that wouldnt work.

Mon, 07/18/2011 - 20:24 | 1468528 dougngen
dougngen's picture

I have 50% net worth cash, 50% net worth gold and silver bullion. Here's a funny one, does this make sense? Suppose I have $500,000 cash and $500,000 bullion. If one doubles and one halves, don't I have $1,250,000?

That is a Brilliant theory.... how will your CASH double in value again?

Mon, 07/18/2011 - 20:48 | 1468605 Praetorian Guard
Praetorian Guard's picture

Neither will do you jack shit when the collapse comes. Enjoy it now and remember the good 'ole days...

Mon, 07/18/2011 - 23:36 | 1469058 ToNYC
ToNYC's picture


Shhh! He's on a roll with one-way math. You make it up on volume by doubling down.

Tue, 07/19/2011 - 02:18 | 1469319 global
global's picture

he's holding Swiss Francs

Mon, 07/18/2011 - 21:14 | 1468696 francis_sawyer
francis_sawyer's picture

"enough of the bs how much is physical gold worth in the us and then lets move forward with rebuilding the country"


"There's more money to be made in destroying a country than building one"

- Rhett Butler

Mon, 07/18/2011 - 17:00 | 1467967 CalibratedConfidence
CalibratedConfidence's picture

No play here.  The States need a Kardashian or something that isn't difficult to think about in  order for the nighty news to play it.

Mon, 07/18/2011 - 17:02 | 1467973 CalibratedConfidence
CalibratedConfidence's picture

No play here.  The States need a Kardashian or something that isn't difficult to think about in  order for the nighty news to play it.

Mon, 07/18/2011 - 19:29 | 1468376 IQ 145
IQ 145's picture

 This isn't "usually". The human desire to trivialize the study of major markets by constantly opting for one simple story or the other simple story from whatever possible cherry-picked list of theirs that makes up their fiction of "the past" is one of its worst features. Neither the short term nor the long term bottom is on the horizon.

Mon, 07/18/2011 - 16:26 | 1467859 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Jungle Juice!!!!!!!!!

Mon, 07/18/2011 - 16:57 | 1467955 I think I need ...
I think I need to buy a gun's picture

we don;t care what these people have to say....

this is coming and coming quick now all at once......


Buffett that jerkoff just said we need something big well its coming buy end of summer.....

let revalue the gold already then move on

Mon, 07/18/2011 - 20:45 | 1468596 Praetorian Guard
Praetorian Guard's picture

Hello? McFly? Anyone home? He mentioned the word COLLAPSE and your asking about gold and silver? PM's will NOT do you any good when it collapses. JiT shuts down, nothing is made, nothing is imported, except very few items, and people are in chaos or in subsistence mode... "money" is not always "gold and silver"...

Mon, 07/18/2011 - 22:55 | 1468967 FeralSerf
FeralSerf's picture

I heard somewhere that the Anunnaki are coming back real soon now and they value gold above all else.  If you ain't got the gold, you'll be in deep shit.  Kinda like when Pizzaro locked up the Inca, I think.

I have some doubts, but a few K-Rands just in case can't hurt.  It's like going to church, (except I haven't gone that far off the deep end).

Tue, 07/19/2011 - 03:05 | 1469359 AldousHuxley
AldousHuxley's picture

I'd say net short. Even metals  go south when there is a crisis.

Mon, 07/18/2011 - 17:25 | 1468034 centerline
centerline's picture

Doesn't want to create a panic.  And doesn't want to get run over when heading for the exits.  If he says late 2012, subtract 6 months or so as a target.

Mon, 07/18/2011 - 17:42 | 1468091 PaperBugsBurn
PaperBugsBurn's picture

I think this fall but with Isntreal warmongering we'll just have to see.

Mon, 07/18/2011 - 20:10 | 1468495 Founders Keeper
Founders Keeper's picture

[Doesn't want to create a panic.  And doesn't want to get run over when heading for the exits.  If he says late 2012, subtract 6 months or so as a target.]---centerline

Probably the smartest post I'll read today on this article. Thank you, centerline.

I can't imagine hedge fund managers become successful by announcing what they're really thinking.


Mon, 07/18/2011 - 17:30 | 1468051 jonytk
jonytk's picture

NOTHING is going to happend folks, by spanish bonds at 6% life time oportunity !!!

Mon, 07/18/2011 - 17:32 | 1468062 jonytk
jonytk's picture

NOTHING is going to happend folks, by spanish bonds at 6% life time oportunity !!!

Mon, 07/18/2011 - 17:34 | 1468067 jonytk
jonytk's picture

NOTHING is going to happend folks, by spanish bonds at 6% life time oportunity !!!

Tue, 07/19/2011 - 00:36 | 1469192 Bananamerican
Bananamerican's picture

so hard for some to catch snark on ZH....

Mon, 07/18/2011 - 19:21 | 1468352 double 007
double 007's picture

Mon, 07/18/2011 - 23:19 | 1469016 aces and eights
aces and eights's picture

Cat got your tongue?

Mon, 07/18/2011 - 22:50 | 1468954 Silver Shield
Silver Shield's picture
Hong Kong Metals Exchange Opens Silver Contract Friday!

Tue, 07/19/2011 - 00:05 | 1469120 goldfish1
goldfish1's picture

Cisco -11,500 jobs

Borders - 11,000 jobs

Tue, 07/19/2011 - 05:52 | 1469417 Incubus
Incubus's picture

Less[er]jobs recovery, awwwright.

Tue, 07/19/2011 - 00:12 | 1469143 wsmith
wsmith's picture

We've been waiting for another Lehman-style credit event for the past couple years.

But it never happens.

And I don't think it will happen.

Instead, we'll just stumble along like a gut-shot bear.

There will be ups.  There will be downs.

Unemployment will remain high.

The rich will make mega-profits.  The rest of us will pray we find work or don't lose our jobs.

We'll be forced to kiss a lot of ass to keep our employment.

Welcome to the new normal.

Mon, 07/18/2011 - 15:59 | 1467742 Black Forest
Black Forest's picture

It's temporary and sustainable.

Mon, 07/18/2011 - 16:02 | 1467763 spekulatn
spekulatn's picture

transitioning from transitory.

Mon, 07/18/2011 - 16:04 | 1467774 Black Forest
Black Forest's picture

transitorily temporary?

Mon, 07/18/2011 - 16:15 | 1467811 akak
akak's picture

It's a transitorily temporary tradition --- like green shoots growing from mustard seeds in a double dip within a soft patch of the Goldilocks economy after a soft landing.

Mon, 07/18/2011 - 18:28 | 1468210 rosiescenario
rosiescenario's picture

"...and the seeds sown on rock sprouteth not, but those falling in the quagmire produceth green shoots..."


...and so ends the lesson for today.

Mon, 07/18/2011 - 16:14 | 1467817 spekulatn
spekulatn's picture


Mon, 07/18/2011 - 16:27 | 1467860 Uncle Remus
Uncle Remus's picture

Bailiff, whack his bond rating.

Mon, 07/18/2011 - 16:47 | 1467923 Cash_is_Trash
Cash_is_Trash's picture

And now for something completely different..

Unicorns puking rainbow skittles with marshmellow raspberry toppings and spinkles.

CHANGE: It's here to stay.

Mon, 07/18/2011 - 16:00 | 1467743 Black Forest
Black Forest's picture

Yes, we can do.

Mon, 07/18/2011 - 15:59 | 1467744 Mitch Comestein
Mitch Comestein's picture

Conflagration bitchez!

Mon, 07/18/2011 - 16:00 | 1467745 RobotTrader
RobotTrader's picture

And now we brace ourselves and wait:

- AAPL earnings

- Casey Anthony's whereabouts....

Mon, 07/18/2011 - 16:04 | 1467770 cosmictrainwreck
cosmictrainwreck's picture

who gives a shit on either?

Mon, 07/18/2011 - 16:20 | 1467840 Vic Vinegar
Vic Vinegar's picture

Put me down as giving a shit about Casey.  There are many of us here who would watch Lady Killers, A Spew to a Kill, or, Dial M for Muffdiving as Mr. Mcbags noted today.

Mon, 07/18/2011 - 16:39 | 1467895 Arius
Arius's picture

i am not clear on Juror nr. 3 ... 

Mon, 07/18/2011 - 19:56 | 1468455 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I have not been watching establishment media.  Did the coroner determine that the child committed suicide or what?!



Mon, 07/18/2011 - 21:21 | 1468711 francis_sawyer
francis_sawyer's picture

Casey Anthony's whereabouts....


Last picture I saw, it looke like she was hiing in the backseat of a car...

Mon, 07/18/2011 - 16:00 | 1467748 JimJones
JimJones's picture

Gotta say I agree with him. I think late 2012 could get interesting due to crowd psychology

Mon, 07/18/2011 - 16:11 | 1467779 Pladizow
Pladizow's picture

This will align perfectly with the Mayan calander - not the end of the world, simply the end of the financial/monetary/economic world.

And you can bet they wont give up this opportunity to seperate the sheeple from their "money".

The elite are being handed a once in a lifetime asset grab opportunity (larger then 08-11) they will definitely capitalize.

Like my hispanic maid said, "Y-2-Que?"

Mon, 07/18/2011 - 18:24 | 1468197 slaughterer
slaughterer's picture

Pladizow: are you married to the carrier of those?  Kinda distracting, wouldn't you say?

Mon, 07/18/2011 - 18:32 | 1468224 Pladizow
Pladizow's picture

Am I a man?

Mon, 07/18/2011 - 19:39 | 1468404 IQ 145
IQ 145's picture

 I'm sorry, I can't answer this question for you; but you probably ought to make up your mind on this point.

Mon, 07/18/2011 - 22:05 | 1468842 bigdumbnugly
bigdumbnugly's picture

don't say it, Pladdy.  If those beauties are actually man cans i'll just cry...

but they are beautiful - the Mona and the Lisa of mammeries.

Mon, 07/18/2011 - 21:53 | 1468802 Stares straight...
Stares straight ahead's picture

We are D.E.V.O.!

Mon, 07/18/2011 - 19:54 | 1468448 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

The demon elites engineered the whole freaking thing.  Do you think for one minute they don't know basic economics and what they are doing?!



Mon, 07/18/2011 - 21:26 | 1468726 francis_sawyer
francis_sawyer's picture

"This will align perfectly with the Mayan calander - not the end of the world, simply the end of the financial/monetary/economic world."


Plaizow is right... Y'all have been duped... 2012 isn't the MAYAN calendar end... It's the "MAY(ER)AN" calendar end...

Mon, 07/18/2011 - 18:30 | 1468216 rosiescenario
rosiescenario's picture

.perhaps today was the start of the market discounting this outcome????

Mon, 07/18/2011 - 20:09 | 1468491 dracos_ghost
dracos_ghost's picture

Yup. Obama wins reelection and Dems take back Congress. Then the REAL spending begins.

Tue, 07/19/2011 - 05:57 | 1469418 Incubus
Incubus's picture


Gotta say I agree with him. I think late 2012 could get interesting due to crowd psychology

That's exactly why it'll be interesting: a self-fulfilling prophecy. People will make it so, even it if it'd be a non-event otherwise. If you just take a look around, you can -feel- it. People are itching for something big. People want chaos. Disaster. War. Suffering. They want an end to this system--and if there's enough people who "want" it, then we'll have it.

Mon, 07/18/2011 - 16:01 | 1467754 SheepDog-One
SheepDog-One's picture

As an aside, once again the farce is strong as DOW is pumped 60 points into the close to ensure equities never close down triple digits. Just sickening at this point.

Mon, 07/18/2011 - 16:07 | 1467787 lunaticfringe
lunaticfringe's picture

Isn't it beyond belief? An entire nation desperately trying to escape the fate it so richly deserves...How long can they levitate equities? They will collapse in the end- along with every fucking retirement system and 401k. Like dominoes.

Mon, 07/18/2011 - 16:08 | 1467795 Franken_Stein
Franken_Stein's picture


Or, you will get your 401k nominally, but it will only buy you a bar of chocolate.

That's the other alternative.


Mon, 07/18/2011 - 16:21 | 1467845 idea_hamster
idea_hamster's picture

Hooray!  I love chocolate!


Tue, 07/19/2011 - 06:13 | 1469428 Incubus
Incubus's picture

No, we'll have chocolate rations in our work camps.  And our alottment will be ever-increasing.  Times're always getting better, friend.  Never a better time to be alive.


Now, if only there were some victory gin to wash down those chocolate rations.

Mon, 07/18/2011 - 16:30 | 1467871 NOTaREALmerican
NOTaREALmerican's picture

Re:  Or, you will get your 401k nominally, but it will only buy you a bar of chocolate.


Yes,  the only way out that keeps the current players in power.  


(Not saying they'll be successful, but it's their only "hope".)  

Mon, 07/18/2011 - 16:44 | 1467914 BigJim
BigJim's picture

Or, you will get your 401k nominally, but it will only buy you a bar of chocolate.

So... what, you're saying we should all be long cocoa?

Mon, 07/18/2011 - 19:43 | 1468419 IQ 145
IQ 145's picture

 No. not exactly.

Mon, 07/18/2011 - 21:18 | 1468704 FEDbuster
Mon, 07/18/2011 - 21:28 | 1468728 francis_sawyer
francis_sawyer's picture


Mon, 07/18/2011 - 16:07 | 1467788 Franken_Stein
Franken_Stein's picture


May the farce be with you, young Jedi.


Mon, 07/18/2011 - 16:28 | 1467866 filletandrelease
filletandrelease's picture

I am sensing a great disturbance in the force.  Its as if a trillion pieces of linen are crying out in pain all at once.

Mon, 07/18/2011 - 16:48 | 1467925 Franken_Stein
Franken_Stein's picture


Something terrible must have happened.




Wait a minute.

These are the proper coordinates.

But where is planet All-debt-bar-none ?

It's gone.


All we see are pieces of broken printer cartridges floating through space, striking our ship's hull.


Mon, 07/18/2011 - 17:11 | 1467989 akak
akak's picture

That's no moon --- it's a printing press!

Mon, 07/18/2011 - 17:27 | 1468038 centerline
centerline's picture

ha ha.  made my day with that one.

Mon, 07/18/2011 - 19:08 | 1468321 WarProfiteer
WarProfiteer's picture

Now that's funny shit right there!

Mon, 07/18/2011 - 19:13 | 1468331 Long-John-Silver
Long-John-Silver's picture

OMG! I'm going to spend the next hour with GIMP and pictures of Death Stars and Money.....

GIMP is the Linux version of Photoshop.

Mon, 07/18/2011 - 17:38 | 1468083 Colonel
Colonel's picture


Mon, 07/18/2011 - 18:04 | 1468151 Hacked Economy
Hacked Economy's picture


Awesome zinger, fillet.

Mon, 07/18/2011 - 16:21 | 1467847 chunga
chunga's picture

That's one helluva "invisible hand". Watching the DJIA could give an aspirin a headache.

Mon, 07/18/2011 - 18:30 | 1468214 IQ 145
IQ 145's picture

 "could give an aspirin a headache"--I like that. I think I'll rememberize it for future misuse.

Mon, 07/18/2011 - 19:17 | 1468340 Freddie
Freddie's picture


Sad but true.  We are headed to Mugabe 2.

Mon, 07/18/2011 - 16:03 | 1467756 Cleanclog
Cleanclog's picture

REPUDIATION - coming in almost every form.  Means don't intend to live up to obligations and that sums up many Euro countries and the USA these days.  Don't intend to honor pensions, health care, or drivable roads. This is going to get old as I see "repudiation" everywhere so will be commenting on it frequently.  Am writing a longer explanation and will add later.

Meanwhile, and OT a tad, isn't Apple as "flight to quality" increasingly interesting?  I think another angle on increasing lack of faith in Treasuries and others as stalwarts.

Mon, 07/18/2011 - 16:02 | 1467762 lieutenantjohnchard
lieutenantjohnchard's picture

how can it be any other way? huge debt, small tax base, banks in control of the political process, regulators and central bank. seems obvious.

Mon, 07/18/2011 - 16:47 | 1467920 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1605 Lieutenant.

Hyperinflation seems to be the most likely scenario.

Investors can buy (physical) gold as a true hedge.  Or they can buy LULU, NFLX or AAPL as RobotTrader would suggest, LOL...

The time may be growing short to prepare!  Get going!

Mon, 07/18/2011 - 19:01 | 1468296 lieutenantjohnchard
lieutenantjohnchard's picture

you're right. i've got as much physical as i can in the short run.

Mon, 07/18/2011 - 16:04 | 1467766 lunaticfringe
lunaticfringe's picture

ZH readers will agree with him. We are such a micro community that to call us a minority is a gross understatement. At 40 dollar levels...I still see silver as a screaming buy. The only protection available when the world's fiat scheme blows the fuck up.

Mon, 07/18/2011 - 16:30 | 1467872 Uncle Remus
Uncle Remus's picture

blows the fuck up



Mon, 07/18/2011 - 23:03 | 1468985 Shredd the FED
Shredd the FED's picture

Can you guys share your views on what is going to happen to those who have mortgages, student loans, car loans and other loans? When everything starts will banks immediately require to pay off the mortgages and other loans? Or in case of a huge inflation, it makes sense to purchase a new car with lets say a 5 year loan, and lock the interest rates so they dont change. Does the same apply for a real estate mortgage? Or any of this is a bag idea??? Will the student loans be written off? Can someone post your thoughts, because I cant find info on the web what are the possible outcomes for those who have loans. Thank you.

Tue, 07/19/2011 - 00:40 | 1469198 Bolweevil
Bolweevil's picture

They'll enact legislation requiring all debt to be repaid at pre-inflation equivalent. Acting on the way up is key IMHO (beat the new laws and still benefit from new 'values' new rates, etc.) otherwise those in debt enjoy their hamster wheel perpetually.

Tue, 07/19/2011 - 00:55 | 1469200 Bolweevil
Bolweevil's picture


Tue, 07/19/2011 - 00:53 | 1469201 Bolweevil
Bolweevil's picture


Tue, 07/19/2011 - 00:50 | 1469212 Bolweevil
Bolweevil's picture


Mon, 07/18/2011 - 16:04 | 1467767 LawsofPhysics
LawsofPhysics's picture

Okay, I'll bite, just what is this "outperforming" hedge fund holding?  Numbers and details please, don't lower your own standards Tyler.

Mon, 07/18/2011 - 16:07 | 1467789 SheepDog-One
SheepDog-One's picture

Thing is, a timeline of '2012-2013' is basically meaningless as it assumes as all these guys do theres a comfortable cushion period until 'things get rough'. Has this guy ventured out of Manhattan lately? And none of them ever saw 9-11 coming, and another one of those is due any day so all I take from this article is implosion is certainly coming, and no one know if its tomorrow or months away.

Mon, 07/18/2011 - 16:24 | 1467854 narapoiddyslexia
narapoiddyslexia's picture

They're in Westport, Conn. And they say they are the best, so it must be true, eh? -

But, and it a big but, Dalio makes a lot of sense. I'd never heard of him, but I am obviously an ignorant primitive who actually likes to live in the woods.

Read this -

Doomer supreme, with an argument.

Mon, 07/18/2011 - 19:22 | 1468353 Freddie
Freddie's picture

Ray Dialo is not like the rest.  He has been at it for about 36 years. He has an incredible track record, the largest fund and is a serious guy who has far less of an agenda than quick hit hedge funds.

Mon, 07/18/2011 - 21:33 | 1468736 francis_sawyer
francis_sawyer's picture

"He has been at it for about 36 years. He has an incredible track record, the largest fund and is a serious guy who has far less of an agenda"


Great - Then if you have such big slapping balls, take COMEX down tomorrow & spare me the drama

Mon, 07/18/2011 - 19:48 | 1468432 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

As usual, spot on SheepDog-One.  Yes, days, weeks, months or years away?  False flag due anytime now.


Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 07/18/2011 - 16:04 | 1467768 SubjectivObject
SubjectivObject's picture

Phew!  Got a year yet to get ready. 

Recent headdings had got me freadked.

Mon, 07/18/2011 - 16:04 | 1467771 Sudden Debt
Sudden Debt's picture

Europe will soon start to print so I don't share his view in that.

Also: 2013: It's like global warming. First they said that the north pole would be ice free by 2100. Now it's already 2035.

It will all be monkeybrains soup by the summer of 2012, maybe even by newyear.


Mon, 07/18/2011 - 16:16 | 1467827 LongBalls
LongBalls's picture

Agreed. Sooner than later. But I believe we will not see a total collapse before WWIII. They need something to blame it on and a cry for mercy by the people (because the people can't stomach anymore poverty, death, and destruction) to usher in the NWO currency/gov. You more borders. No more currency wars = no more real wars. Until someone like Hitler is given the reigns.

Mon, 07/18/2011 - 16:17 | 1467831 cougar_w
cougar_w's picture

Agreed. 2012 will be a very tight battle for control, and they could lose that battle easily at any point in the year. Likely, when the loft effects of QE3 peter out.

Mon, 07/18/2011 - 17:00 | 1467966 Ghordius
Ghordius's picture

Define "they". The parasite or the befuddled and corrupt host?

Mon, 07/18/2011 - 17:07 | 1467969 Ghordius
Ghordius's picture

Define "they". The Banks that drink the sweet milk from the trasuries teats or the government's that drink the sweet milk of future taxes?

Mon, 07/18/2011 - 16:28 | 1467867 Ghordius
Ghordius's picture

Hold on WW3. Don't see how, even including the Iran-Israel option.
Please, give me a depression instead of super-inflation! Anytime!

I note the pressure on Germany re EuroBonds and EuroTreasury is rising through certain media. The parasites are preparing a new host. Yummy, fees and EuroCDS make fat delicious bonuses!

Mon, 07/18/2011 - 21:36 | 1468746 francis_sawyer
francis_sawyer's picture

Please, give me a depression instead of super-inflation! Anytime!


Since you asked so politely... We'll give you both in due time...

Mon, 07/18/2011 - 16:04 | 1467775 toxic8
toxic8's picture

Can someone explain why the US "can" print itself out of debt and the EU/ECB cannot do the same? Is it all because of $ reserve currency status, and if so, how exactly does that work?



Mon, 07/18/2011 - 16:27 | 1467863 sitenine
sitenine's picture

Think of European countries as states that do not have the individual ability to print currency (in fact, they are NOT sovereign). Example, the US can print trillions of dollars, but that doesn't do shit to keep California from going broke.

Mon, 07/18/2011 - 16:32 | 1467877 Uncle Remus
Uncle Remus's picture

doesn't do shit to keep California from going broke


works for me.

Mon, 07/18/2011 - 16:48 | 1467926 nope-1004
nope-1004's picture

Oil is in US dollars.  Nixon dictated that it be so when he removed the Gold standard.

Therefore, US dollars are the international dollar trade.  Only the US can print its own dollars.


Mon, 07/18/2011 - 18:03 | 1468146 GoinFawr
GoinFawr's picture

Mish and I don't always see eye to eye, but here we do; though not with you:

"Ten Simple Facts

1) Oil is priced in dollars.
2) Oil trades in Dollars and Euros right now in spite of the pricing unit being dollars. OPEC has recently admitted this fact.
3) Clearly oil does not have to be priced in Euros to trade in Euros, or for that matter priced in Yen to trade in Yen. The same applies to any major currency.
4) Neither Venezuela or Iran hold any dollar reserves. To the extent that either is taking trades in dollars, there is clearly nothing forcing them to hold dollars. By extension there is nothing forcing any OPEC country to hold dollars if it doesn't want to.
5) It takes less than a second for Forex trades to take place. 24 hours a day, 7 days a week, one can sell any currency they want and buy any other currency.
6) The above logic applies to any currency and any commodity.
7) Nothing is stopping anyone at any time anywhere from selling dollars for whatever currency they want to hold. Nor is anything stopping anyone anywhere at any time from selling any major currency for U.S. Dollars.
8) Because currency conversion is instantaneous no one has to hold U.S. dollars to buy oil, copper, gold, iron, lead, wheat, soybeans, or anything else.
9) Dollars are held (or not held) for reasons totally unrelated to pricing unit. Some of those reasons are political, some are based on sentiment, some on trade patterns and trade relationships, and some to suppress the value of local currencies to improve exports.
10) Currencies float and so do the price of oil and commodities. Pricing oil (or any other commodity) in Euros will not cause a price change in dollars. Look at gold which is simultaneously priced in everything as proof."


Mon, 07/18/2011 - 19:45 | 1468424 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

#4 is incorrect.  Secretary of State demon Henry Kissinger cut a deal with the most of the Mideast oil exporting countries in 1970s whereby the U. S. would cap its huge oil reserves domestically (yes peak oilers we do have them) in turn the U. S.  would buy cheap Mideast oil with U.S. Dollars.  Then OPEC promised to spend a great deal of those dollars buying U. S. debt and we would protect them militarily.  That deal is still on except that the Saudis and others now realize that they are being double crossed in that the U. S. debt they hold will eventually become worthless and the U. S. and NATO are now undermining regimes throughout MENA.  Saudi Arabia will be the last to fall.  Hence, we see Saudi Arabia running into the arms of the Russians and Chinese as well as the Pakistanis to assist in local insurrection.  So, for now, at least, there is something forcing most OPEC countries to hold U. S. Dollars but those days are numbered.

Mon, 07/18/2011 - 21:29 | 1468730 sun tzu
sun tzu's picture

It isn't so cheap anymore. Time to uncap them. 

Mon, 07/18/2011 - 17:55 | 1468130 WakeyWakey
WakeyWakey's picture

Only the US can prints its own dollars.


Can't argue with that but what's stopping other countries printing their own currency and buying dollars with it...same outcome is it not?

Mon, 07/18/2011 - 18:10 | 1468162 GoinFawr
GoinFawr's picture

"Can't argue with that but what's stopping other countries printing their own currency and buying dollars with it"?

Ans. GS alumnis or wanna-be's governing central banks; collusion?

Mon, 07/18/2011 - 21:39 | 1468758 francis_sawyer
francis_sawyer's picture

...& what's to stop ALL OF THE ABOVE from printing "dolleuryenrealyuans" & buying Au with it?

Mon, 07/18/2011 - 16:43 | 1467908 Sudden Debt
Sudden Debt's picture

That's just some fine print just like the fact that EU country's can only have a debt GDP of 60%.

I wonder how many meet the standard these days...

And fine print is so easily erased...


Mon, 07/18/2011 - 16:57 | 1467954 Ghordius
Ghordius's picture

Fineprint? Wait for Draghi! He learned all about fineprint at the Squid!

Mon, 07/18/2011 - 18:39 | 1468241 delacroix
delacroix's picture

didn't you hear? California, already went broke

Mon, 07/18/2011 - 23:17 | 1469005 FeralSerf
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