{"id":506160,"date":"2022-11-03T20:54:06","date_gmt":"2022-11-03T17:54:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hyperinflation-could-cause-worst-economic-crisis-since-wwii-fund-warns\/"},"modified":"2022-11-03T20:54:06","modified_gmt":"2022-11-03T17:54:06","slug":"hyperinflation-could-cause-worst-economic-crisis-since-wwii-fund-warns","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hyperinflation-could-cause-worst-economic-crisis-since-wwii-fund-warns\/","title":{"rendered":"#Hyperinflation could cause worst economic crisis since WWII, fund warns"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a291cdd212a2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a291cdd212a2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/hyperinflation-could-cause-worst-economic-crisis-since-wwii-fund-warns\/#%E2%80%9CHyperinflation_could_cause_worst_economic_crisis_since_WWII_fund_warns%E2%80%9D\" >&#8220;Hyperinflation could cause worst economic crisis since WWII, fund warns&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CHyperinflation_could_cause_worst_economic_crisis_since_WWII_fund_warns%E2%80%9D\"><\/span>&#8220;Hyperinflation could cause worst economic crisis since WWII, fund warns&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The global economy is at risk of crippling hyperinflation and \u201cextraordinary\u201d conditions that could prompt the worst financial crisis since World War II, according to major hedge fund Elliott Management.<\/p>\n<p>Elliott Management, led by famed billionaire investor Paul Singer, warned clients that extreme conditions present in the current economic landscape have \u201cmade possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period,\u201d according to a letter obtained and published Wednesday by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/f3bb0f96-1816-4481-8318-4f7583326a4a\">The Financial Times.<\/a><\/p>\n<p>The letter also cautioned that economies around the world are \u201con the path to hyperinflation\u201d \u2014 a term referring to uncontrollable acceleration in the cost of daily necessities. <\/p>\n<p>While hyperinflation is not inevitable, Elliott said it would cause \u201cglobal societal collapse and civil or international strife\u201d if it does occur.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/paul-singer.jpg?w=1024\" alt=\"Paul Singer\" class=\"wp-image-24514727\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/paul-singer.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/paul-singer.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/paul-singer.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Paul Singer is founder and president of Elliott Management.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>Elliott Management is one of the world\u2019s most well-respected hedge funds, with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $56 billion in assets under management. Elliott\u2019s bets are up more than 6% this year, and the firm has recorded an annual loss just twice since 1977, according to The FT.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>The market has been under intense pressure this year as the Federal Reserve rapidly tightens interest rates in a scramble to lower inflation. The Russia-Ukraine war has added to existing supply chain difficulties and caused a jump in food and commodities prices.<\/p>\n<p>The Fed\u2019s benchmark rate hit its highest level since 2008 on Wednesday after policymakers implemented a fourth straight hike of 0.75%.<\/p>\n<p>The US inflation rate has fallen slightly from its peak over the summer, though it ran at a hotter-than-expected 8.2% in September. An updated Consumer Price Index reading is slated for release next week.<\/p>\n<p>The Florida-based entity noted that current conditions are uniquely dangerous, even when compared to past financial crises such as the Great Recession in 2008 and the 1970s inflation surge.<\/p>\n<p>\u201cInvestors should not assume they have \u2018seen everything,\u2019\u201d the letter added.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/grocery-inflation-1.jpg?w=1024\" alt=\"grocery shoppers\" class=\"wp-image-24514719\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/grocery-inflation-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/grocery-inflation-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/grocery-inflation-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Elliott Management warned current economic conditions are uniquely dangerous.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Elliott Management declined to comment.<\/p>\n<p>The broad-based S&amp;P 500 is in bear territory, falling about 22% since January as investors increasingly fear Fed policy will trigger a recession. The tech-heavy Nasdaq is down nearly 35%, while the Dow Jones Industrial Average has fallen about 12%.<\/p>\n<p>Elliott stated that markets face an array of \u201cfrightening and seriously negative possibilities\u201d \u2013 with a 50% decline in equities a \u201cnormal\u201d potential outcome given the risks.<\/p>\n<p>The firm also took aim at the Fed and other central bankers, accusing policymakers of exacerbating the current trouble and being \u201cdishonest\u201d about the root causes of the decades-high inflation currently plaguing American consumers.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/jerome-powell-1-1.jpg?w=1024\" alt=\"Fed Chair Jerome Powell\" class=\"wp-image-24514723\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/jerome-powell-1-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/jerome-powell-1-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/jerome-powell-1-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Elliott accused central bank officials of being \u201cdishonest\u201d about inflation.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>Fed Chair Jerome Powell and other central bankers have largely blamed the problem on unprecedented supply chain disruptions without acknowledging the impact of historically loose fiscal policy during the COVID-19 pandemic.<\/p>\n<p>Elliott is just the latest prominent voice to raise alarm bells about the global economic outlook.<\/p>\n<p>Ex-Treasury Secretary Larry Summers \u2013 another outspoken critic of the Fed\u2019s posture on inflation \u2013 asserted in September that the level of risk in global markets was at its highest since 2007, when the world was on the precipice of the Great Recession.<\/p>\n<p>Hedge fund wizard Michael Burry \u2013 whose bet against subprime mortgages was famously chronicled in \u201cThe Big Short,\u201d has argued for months that markets are in the midst of \u201cthe mother of all crashes.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/11\/03\/hyperinflation-could-cause-worst-economic-crisis-since-wwii-fund-warns\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Hyperinflation could cause worst economic crisis since WWII, fund warns&#8221; The global economy is at risk of crippling hyperinflation and \u201cextraordinary\u201d conditions that could prompt the worst financial crisis since World War II, according to major hedge fund Elliott Management. Elliott Management, led by famed billionaire investor Paul Singer, warned clients that extreme conditions present&#8230;<\/p>\n","protected":false},"author":1,"featured_media":506161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/paul-singer-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135011,5069,76863,70550,88397,70551,78738,73592,91261,127049],"class_list":["post-506160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-11-3-22","tag-economy","tag-elliott-management","tag-federal-reserve","tag-global-economy","tag-inflation","tag-jerome-powell","tag-paul-singer","tag-recession","tag-the-fed"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=506160"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506160\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/506161"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=506160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=506160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=506160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}