Elliott: "Superinflation is Coming... Possibility of Social Collapse, Civil War, and National Conflicts"

Warning from US activist hedge fund Elliott Management
"Responsibility lies with each country's central bank"

Paul Singer, Founder of Elliott

[Asia Economy Reporter Kim Bo-kyung] U.S. activist hedge fund Elliott Management has issued a warning about the possibility of 'hyperinflation' that could lead to social collapse.

According to MarketWatch on the 3rd (local time), Elliott stated in a letter sent to its clients, "Due to an extremely difficult economic environment, the world is heading toward hyperinflation," adding, "As a result, societies worldwide may collapse, leading to civil wars and national conflicts."

In the letter, Elliott warned of further declines in global asset prices, which are already falling, stating that a 50% drop from the peak would be considered 'normal.'

Elliott pointed to central banks of various countries as responsible for this crisis. While central banks claim that inflation began due to supply chain disruptions caused by the COVID-19 pandemic, Elliott argues that the real cause was the massive accommodative fiscal policies implemented in response to the COVID-19 outbreak in 2020.

Elliott said, "The frightening and serious negative possibilities are enormous," and added, "It is difficult to erase from our minds the possibility that all bubbles could collapse severely."

It further warned, "Just because we have experienced the bear market of the 1970s, Black Monday in 1987, the dot-com bubble burst in the early 2000s, and the 2008 financial crisis, we should not think that 'we have seen it all.'"

Founded by billionaire Paul Singer, Elliott is one of the world's largest hedge funds with assets under management totaling $56 billion (79 trillion won).

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