Skip to comments.Dylan Grice Writes His Most Negative Note Ever: 'I Am More Worried Than I Have Ever Been'
Posted on 10/02/2012 10:42:41 AM PDT by blam
Dylan Grice Writes His Most Negative Note Ever: 'I Am More Worried Than I Have Ever Been'
October 2, 2012
SocGen strategist Dylan Grice is known for being pretty bearish in general, but this could take the cake.
Check out the way Dylan Grice begins his latest missive:
I am more worried than I have ever been about the clouds gathering today (which may be the most wonderful contrary indicator you could hope for...). I hope they pass without breaking, but I fear the defining feature of coming decades will be a Great Disorder of the sort which has defined past epochs and scarred whole generations.
What's this Great Disorder? Grice is talking about monetary easing by the world's central banks.
Grice is concerned that, as history has shown, currency debasement will lead to "social debasement," or a rise in social disorder as trust breaks down on a large scale.
And the social debasement is already easy to see in the United States, according to Grice. He writes, "The 99% blame the 1%, the 1% blame the 47%, the private sector blames the public sector, the public sector returns the sentiment ... the young blame the old, everyone blame the rich ... yet few question the ideas behind government or central banks ..."
Grice says we've been living through "what might be the largest credit inflation in financial history, a credit hyperinflation."
That "credit hyperinflation," however, has only served to enrich those at the top at the expense of those at the bottom.
Grice says even Keynes recognized this effect, which is why "it's ironic so many of today's crude Keynesians support QE so enthusiastically."
The Keynes quote Grice references: By a continuing process of inflation, Governments can confiscate, secretly and unobserved,
(Excerpt) Read more at businessinsider.com ...
Translation: Being a welching mooch only works when all 7 billion of us are not trying to do it at the same time
It's only a matter of 'when' IMO.