According to Elon Musk, the US will enter a severe recession over the next 12 to 18 months.
US recession according to Elon Musk
On All-in, America’s most-watched Monday podcast, the iconic Tesla and SpaceX CEO returned to talk about the health of the US economy.
The entrepreneur’s predictions, like all his outings, have a large-scale echo that often influences the portfolio choices of some investors.
This time he comes down hard on the US Central Bank. According to the businessman, in fact, a major recession lasting about a year and a half is just around the corner and the cause would be the excessive issuance of money to make up for the shortfall caused by the pandemic.
Musk believes that at the root of the impending crisis is the fact that the Fed got out of hand with helicopter money and printed 1 billion dollars too much.
During the podcast he said:
“The honest reason for the inflation is that the government printed a billion more money than it had … This isn’t like, you know, super complicated”.
According to Tesla’s CEO, recessions don’t necessarily have to be taken as a problem, but can also be an opportunity where resources have to be dosed wisely.
In this regard he adds:
“What tends to happen is that if you have a boom that lasts too long, you get bad capital allocation – it basically starts raining money on fools”.
In essence, less money should have been spent and more importantly, it should have been spent better. The jibe at the Fed’s policies is blatant and the entrepreneur’s companies have their backs covered having already anticipated the strategies for a situation that the entrepreneur widely foresaw.
Musk continues to fight for Twitter
Recently, the CEO has been on a climb, first to 9% and then to an all-in omen nomen of Twitter. Musk likes the Twitter social network, to the extent that he has reached an agreement with the company for a mutually agreed purchase.
The deal is done and Musk is expected to pay the company an amount of $44 billion. However, in the face of last-minute complications, it appears that the deal may be cancelled or delayed.
According to the findings, the users declared by the social network do not correspond to reality.
The fake users turn out to be many more than declared with a ratio of four times the figure provided.
The news made Elon stop the deal and he promptly asked for an analysis of Twitter users. He is adamant about closing a fairer deal stating:
“You can’t pay the same price for something that is far worse than they claim”.
We will see how the negotiations will turn out and what the next moves in the markets will be, especially after Musk’s statement.
The post Elon Musk expects a US recession for the next year and a half appeared first on The Cryptonomist.
