Bearish Comments by Elliott Management Boss Spurs Global Bond Rout

This morning in a CNBC interview at the Delivering Alpha forum, billionaire Paul Singer, boss man at the behemoth $27b Elliott Management hedge fund, talked extremely greasy against the zero interest rate policy, warning investors to get the fuck out of dodge.

“What they have done is created a tremendous increase in hidden risk, risk that investors don’t exactly know or have faced about their holdings,” he said at the conference presented by CNBC and Institutional Investor. “I think it’s a very dangerous time in the global economy and global financial markets.“

He rambled on about the unprecedented nature of the zirp policy, strongly advocating investors sell their bonds. After all, it’s unsustainable.

“With roughly $15 trillion on the major central bank balance sheets, with all of these rates at zero or even crazily below zero, you have a very delicate situation which cannot be solved by a sledgehammer,” Singer added. “You need some finesse”.

Then he focused his shit talking mouth at foreign bonds.

“I think owning medium to long-term G-7 fixed income is a really bad idea. By removing these things that are bad ideas, that’s a helpful think. Sell your 30-year bonds. ”

The benevolent Mr. Singer, wearing his best Wolf Blitzer Halloween mask, said there was “tremendous, never-before seen asymmetry between potential further reward and risk.”

My take.

Men like P. Singer didn’t get to run $27b without being an alpha predator. This man is hard wired to think about himself first. He’s talking his book and I doubt he’ll be short bonds for very long. He’s bullish on gold, so that makes him an inflationista. Basically, he believes in the inflation boogeyman and wants rate hikes to provide him with an exit point for his positions. He is, without question, a robber baron styled caitiff of the first magnitude.

The notion that global central banks will, all of a sudden, seek religion and stop rigging markets is laughable. They’re entrenched in this ideology and are all in. As such, any long term bets against sovereign credit is a periless one. We’ve see these routs before and they all end the same: TLT hitting new highs.

However, at the moment, investors are viewing his comments and those of another bond bear, who also sucks bank dick, Bill Miller, as something of a prophecy.

Bunds and Treasuries are getting claw hammered.

They’re wrong and you’ll see in due course.

The deflationary vortex is alive and well. Rates aren’t going up anytime soon, as long as western economies are saddled with trillions of debt.