Hedge Fund Manager Warns on Hitler Scenario
by Robert Wenzel: The
Luck of the Concordia Kids
hedge fund manager Ray Dalio appeared on CNBC this morning and warned
of potential social unrest and what it could mean.
know whether we're beyond the point of being able to successfully
manage this. And I worry then about social disruption. I worry
about another leg down in the economies causing social disruptions.
Because deleveraging can be very painful, it depends how they're
people get at each other's throat, the rich and the poor and
the left and the right and so on, and you have a basic breakdown,that
becomes very threatening. And for example, Hitler came to power
in 1933, which was the depth of the Great Depression because of
the social tension between the factions. So I think it very much
is dependent on how the people work this through together and
worry about the social elements.
This is not
the only major player I have heard this from. There are others who
believe the die is cast and that it will be near impossible to get
out of the current environment without major unrest (in the U.S.),
and once the unrest hits, it is unclear what will emerge.
with permission from Economic
Economic Policy Journal
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