"The End Game: 2012 And 2013 Will Usher In The End" - The Scariest Presentation Ever?

Tyler Durden's picture

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 London for GLG Partners, one of the largest hedge fund groups in the world. Raoul came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe... Raoul Pal retired from managing client money in 2004 at the age of 36 and now lives on the Valencian coast of Spain, from where he writes." It is his writing we are concerned about, and specifically his latest presentation, which is, for lack of a better word, the most disturbing and scary forecast of the future of the world we have ever seen....

And we see a lot of those.

Consider this:

  • 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 UK crisis of equal magnitude.
  • And then do you think Japan and China would not be next?
  • And then do you think the US would survive unscathed?
  • That is the end of the fractional reserve banking system and of fiat money.
  • It is the big RESET.

It continues:

  • Bonds will be stuck at 1% in the US, Germany, UK and Japan (for this phase).
  • 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.



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Ranger4564's picture

You're right about that, but this time around, there will be about roughly 6.99999999999999999 Billion pissed off natives, who will band together overcoming their massive disagreements and body odor, to form one fucking huge militia likes of which the world has never seen, and we'll crucify these fuckers once and for all.  Forget the military / politzai / various agencies / mercenaries / drug lords / mob... the people will clean house.  It has come to a point so deep, we need to really deal with these scum once and for all. You don't need their grain or power if you prepare and know how to survive.  Don't become compliant.

Cathartes Aura's picture

bioweaponry.  already being used, efficiency.  not everyone gets a ticket to ride. . .


"I think I'm gonna be sad, I think it's today. . ."


Ranger4564's picture

yeah, i know these bastards have been working on killing in every way possible... sick fuckers really.  nano aerosol dispersed viruses.  sprayed in the air, absorbed through your skin. thanks to funding by bill gates of hell.

Cathartes Aura's picture

plus one reality upvote.  spread the word(s).

kiwidor's picture

except 15:1 is no longer the natural ratio.   More like 8:1

FOFOA could write 200 pages of rational shit to explain or debunk this, but I won't.  instead, i'll skip the overwrought argument and head straight for the crutch;

an 8:1 ratio, which is more natural today than the oft quoted 15:1, will have the effect not of increasing the price of silver, but of limiting the price of gold.

(and bear in mind there isn't enough of either metal to go around)

Ranger4564's picture

When all this interest globally chases Gold, there won't be enough who want to part with it for whatever is deemed to be exchangeable currency, so Silver, Tungsten, Copper, Titanium, every fucking thing will go up, in regions.  Silver will do very well along with Gold because Silver used to be money in poorer countries that could not afford gold.  So in my opinion, Silver will do quite well.  And if we really want to fuck the bankers, we disuse gold and focus all popular attention on using silver... as a way to topple their "power".  That's the real logic of the silver liberation army.

dougngen's picture

Long self sufficency and self defence...


flacon's picture

Why are those grown males acting like children?

Calmyourself's picture

Becasue they are the epitome of bread and circus imbibing morons..

mtomato2's picture

Fuck it, Dude.  Lets go bowling.

NuckingFuts's picture

I guess I picked the wrong year (2012) to quit sniffing glue.

kiwidor's picture

There is never a wrong year to quit sniffing glue.   or taking Meth.  or Coke.  (either kind)

Junkies are happy enough when they have their junk, so a minor H habit isn't so bad.  

but glue?  nasty . as my dad always used to say (apart from saying "don't get caught"); "Don't be a cheap-drug addict."

AurorusBorealus's picture

The "new system" that emerges after a financial collapse will certainly include an attempt to install complete fascist totalitarianism in the West and provoke a war that involves much of the globe.

Economics and finance do not exist in a vacuum unattached to the real world no matter how removed derivatives seem from anything that produces goods or services for people.  This is no mere economic squall; this is a hurricane that will obliterate the social and political structures of most of the world.

macholatte's picture

The "new system" that emerges after a financial collapse will certainly include an attempt to install complete fascist totalitarianism in the West and provoke a war that involves much of the globe.


Now take that thought and envision the most disgusting politicians imaginable being protected by the cops and the army and the governments they helped to destroy, being shielded in bunkers and private estates at zero cost with servants and assistants and security guards and plenty of food and drink, while they remain in power, while the sheeple get trampled and bloody and miserable.

Offthebeach's picture

Envision? It's called, Town Hall, Anywhere. USA.

Clashfan's picture

Macholatte, exactly. Now add in technology, info databanks on all persons, bio-weapons, massive bunkers for the elite, energy weapons, and obedient coppers.

A Lunatic's picture

Oh. I thought good men would rise to the occasion, chase out the moneychangers, elect Ron Paul and return to the gold standard...............



Xel3's picture

I share your pessimism towards good men standing to the ocassion. On the other hand there was this one time around 1786 or so I think.

Besides. Who needs "good" men when you have a starving nation? Ask ol' Louie the 16th how that played out for him. ^_^


Clashfan's picture

Um, better ask Louis and the Czar about Templars first.

Xel3's picture

I share your pessimism towards good men standing to the ocassion. On the other hand there was this one time around 1786 or so I think.

Besides. Who needs "good" men when you have a starving nation? Ask ol' Louie the 16th how that played out for him. ^_^


Miffed Microbiologist's picture

Agree with your sarcasm. Ive been on the lookout for the next Hitler making his pitch to solve all the problems. Someone charismatic, persuasive and giving hope to the masses, a real orator to herd the sheeple. Don't really see one that fits the bill just yet, he (she?) must be waiting for the true economic malaise before emerging. Fascism here we come!


zerotohero's picture

Even if half of what he says happens - it ain't gonna be pretty.

cranky-old-geezer's picture



Nice presentation, but wrong conclusion.

TBTF banks are just that, too big to fail, meaning endless printing to keep bailing them out.

Bank collapse won't happen.  But currency collpase will. From all that endless printing.

2013 will usher in the new global feudal financial system where governments, banks, and similar oligarchy get boatloads of printed currency to maintain their lavish lifestyles while everybody else slides toward poverty

...because the dollars (or euros or whatever) in their paychecks are worthless, or nearly worthless.

chump666's picture

No, rates are collapsing, which means even the mega wealthy will be screaming out as values collapse across the board, mixed with energy inflation.  The safe havens are collapsing accept for USDs (just look at Asia) and Gold.

USD's?  Yes, why, because all other currencies are stuck with brutal stagflation re: India and China  - a f*cking mess.

Money printing does not keep banks solvent.  Look at Spain, then look at the ECB balance sheet - it 100% financed the Spanish banking sector which is HUGE.  Now a c-hair away from a total collapse.

There is no master players here pulling strings, just a a chaotic rudderless mess. 

Rubbish's picture

I bring up gold to under $1,000 and get all thumbs down.


I agree with the guy, there is no fucking place to hide. You have your strong back and thats about it, well and a ruger 10/22 & a Moist Nugget...pew pew

Just ordered a tack driving scope for the 10/22, all I need now is a Fram oil filter to screw on the end. Gimme your gold bitchez

pods's picture

You are going to take people's gold with a 10/22 and an oil filter?

Better luck stabbing them with the bayonet on the Mosin, at least you can do that from a safe distance.


Rubbish's picture

Actually there isn't going to be any gold, the feds will have confiscated it all for worthless digits.


Gotta love dem digits. All those hungry peeps getting a bounty to turn in folks with Gold, they will love digits too.

chump666's picture

A ZH poster just put up the Rollover clip. Wow, forgot about that movie...now my heart is beating a little faster.  It's right on the money, accept, Asia will drive up US rates by massive USD appreciation and since America can't handle higher rates = slam's that Obama recovery down.  Fed may just lose control of the curve.

+ gold buying.

A Lunatic's picture

Correct...........because just like Facebook, the whole damned financial system is nothing more than a pump and dump scheme for the benefit of the political, social, and economic elite. All of these "failures" are merely consolidations of power and money for them...............

Ranger4564's picture

I agree, and I like how you think.  You've got that devious cunning going for you, so you can think like the evil bastards, and see all of this as not a failure of the banks, but a failing for the people, who will lose their money, the investors who will lose value, and all that gets shoveled to the top of the pyramid.  And same goes for nations, corporations, etc.  All those failings are no threat to the oligarchs, in fact they enrich the oli, they're a threat to the ordinary peeps.

This is the final stages of the overthrow of governments.  All of you who have been clamoring for regulation free society... you're about to have your wish fullfilled.  Happy wet dreams... it's your blood afterall.

cranky-old-geezer's picture



No, rates are collapsing...

It's not about rates moron, it's about value of currency, which keeps dropping with more printing ...and there's gonna be lots more printing to buy up lots more (worthless) paper from governments and banks.

The safe havens are collapsing accept for USDs (just look at Asia) and Gold.

Hey moron, USD has lost 50% of its value since 2007, gold hasn't.  And see what happens when USD loses WRC status, it'll drop like a stone.

Money printing does not keep banks solvent. 

Yes it does moron.  How do you think TBTF banks  survived since '08?

You're a blithering blathering idiot.  Go the fuck away moron.

disabledvet's picture

still gotta have that interest rate reset. i still don't understand "how we get to the end of the world" with zero percent financing of government. eventually "someone has to pay for something" in my view. i can't say i can explain this current "the governments of Germany and the USA don't have to pay for anything" period in time. i have noted that the farmers up here are really clearing the land to make way for "yet another ethanol plant and its feedstock." word is ethanol costs a buck a gallon to make which "can power quite a vehicle fleet" once we throw the corrupt politicians "under the bus" so to speak such that "flex fuel vehicles are required by law." anywho this is one wild time! my advice? "don't be big."

pods's picture

If cash ever detaches from digital, that is when it is time.  As long as plastic (credit/debit same thing) is usable, things will be okay.


WoodMizer's picture

How do these farmers plan to sustain the feilds without oil to produce high intensity nitrogen fertilizer?  Oil is needed more in, large scale, modern agriculture than in almost any other industry.

my puppy for prez's picture

It's called "cover cropping".

Check out "The One Straw Revolution".

kiwidor's picture

check out this too: http://www.crossslot.com/

the guy who made those deserves a nobel prize.

Seer's picture

" i still don't understand "how we get to the end of the world" with zero percent financing of government."

Well, I suppose that being unable to pay for the actual stuff, not just the financing fees, would be a pretty good indicator.

Govts can only hope to keep themselves afloat (a bit longer) by starting wars.  It's physical resources that drive the bus; all the rest is just painting on the outside (advertizing/propaganda).

DosZap's picture

"flex fuel vehicles are required by law."

And who can afford to just junk out their new,used vehicles set for max 10% ethanol?.

Flex fuel will (as you know run on 100% ethanol), ALL  vechicles that are not Flex Fuel self destruct engines at 15% Ethanol.

I am thinking that Ethanol, might be better utilized to feed starving masses,if this is played out as written.

Using Food for fuel is Idocy IMHO.

AGuy's picture


I believe your scenero will be the one that happens. Recall last year the Central banks joined forces to kick the crisis down the road another year. They will kick the can again.

 Japan has managed to hang on despite a much higher Debt to GDP, and with a 9.0 Earthquarke and a meltdown of 3 reactors. It will take a lot more pain before a global collapse happens. Its also likely that countries will continue to erode civil liberties, and probably go to war rather than resign to a collapse. The TPTB will not go down with out a fight. and masses (most either recieving or promised gov't handouts) are likely to go on following, surrendering both their freedom and digity to support the system. The masses will permit the TPTB to continue to plunder assest and wealth (ether by out-right theft of there banking accounts) or with real negative interest rates, just as long as the TPBT lie to them about their promised (non-existant) entitlements and that better times are around the corner!



mtomato2's picture

I SO dont want you to be right.

toady's picture

Yep, that's what I thought.

Of course, I'm just a toady, so no one cares if I say this stuff.

theduke2421's picture

Question - is any of this actionable? If not, is it valuable? 



hedgeless_horseman's picture



Yes, it is actionable on many fronts.  Here is just one...


Whether or not it is valuable is yet to be determined.  

Personally, I try to live every day like it is the banks' last.

cranky-old-geezer's picture



Yes, get your ass(ets) out of their system before they loot your ass(ets) into poverty.