"The Shape Of The Next Crisis" - A Preview By Elliott's Paul Singer | ZeroHedge

Government assited in the last crisis by being the backstop and lender of last resort for a crisis that completely of their making. But as of today, they are still doing exactly what they did 4 years ago. The patient has been unable to get off of the medicine and the withdrawal, I think, of this intervention will be impossible...

As you know, risk has migrated upward, it’s migrated from lenders and borrowers really to governments. It’s gone on the balance sheet of the US, the ECB (the various countries of Europe, particularly Germany, France, etc.). That the credit of Europe, the credit of America, is being called into question in the starkest way is part of what will shape the next crisis.

The next crisis to hit will be when the US government defaults and this will be much sooner than anyone thinks. Where the only money available will book entries from the Fed and this will make all money worthless. The crisis is that there will be no means to transact business since the governments around the world have crowded out every single competing method of exchange in existence excepting in the fiat currency that they have created. You think that the "Walking Dead" TV series is scary, it will be something very close to that. Excepting that there will be the starving people going around trying to feed their kids and themselves.

"The Shape Of The Next Crisis" - A Preview By Elliott's Paul Singer | ZeroHedge