SocGen’s Grice: Global Currency Debasement Might Spark ‘Social Disorder’

Wednesday, 03 Oct 2012 08:29 AM

By Dan Weil

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Societe Generale strategist Dylan Grice isn’t exactly an optimist when it comes to the global economy and social stability.

“I am more worried than I have ever been,” he writes in a commentary obtained by Business Insider. “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.”

So what’s going to cause this Armageddon? Global central bank easing, Grice says.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

"All I see is more of the same — more money debasement, more unintended consequences and more social disorder,” he writes. “Since I worry that it will be Great Disorder, I remain very bullish on safe havens."

Grice doesn’t specify what his favorite safe havens are — gold and other commodities perhaps?

We're witnessing "what might be the largest credit inflation in financial history, a credit hyperinflation," Grice says. And that’s taking money from the poor and giving it to the rich.

Indeed, the social breakdown already has begun, he argues. “The 99 percent blame the 1 percent, the 1 percent blame the 47 percent, , 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.”

As for safe havens, one that some investors are beginning to sour on is Treasurys.

Count star Pimco bond fund manager Bill Gross among them. “If we continue to close our eyes to 8 percent of [gross domestic product] deficits … then we will begin to resemble Greece,” he writes in his October market commentary.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

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