Billionaire Chamath Palihapitiya Issues Global Economic Warning, Announces Demand-Side Recession
Billionaire venture capitalist Chamath Palihapitiya warns that the global economy appears to be on course for two rounds of recession.
In a recent interview on the All-In Podcast, Palihapitiya said the world is currently experiencing a supply-side recession, which he says is the first part of the process.
“We have been in a recession on the supply side. That’s what caused the inflation.
We have to go through a process of withdrawing all excess money that has been invested. And when you do that, we will destroy demand and that will trigger a recession on the demand side…and we will destroy asset values…
I think we’re still firmly in that early phase, and I hate to be the bearer of bad news, but the reason I still think we’re in the early part of that process is because people, d Generally speaking, still have a lot of savings thanks to all the stimulus checks. There is still plenty of money. »
Palihapitiya says there are few indicators suggesting when these economies have been depleted and the global economy is about to enter the second phase of the recession.
“When people are more motivated to re-enter the labor market. I think it’s a signal. When credit defaults really start to skyrocket, [that’s another signal]because people dip into their savings, then into their credit cards and then all of a sudden they become delinquent.
When all of these things are happening, you’re probably now at a point where this first phase of supply-side issues [is] largely done and now you come to demand destruction. But all of these roads, unfortunately, lead to the same conclusion, which is that stocks are really under pressure.
Don’t miss a beat – Subscribe to receive crypto email alerts straight to your inbox
Check Price Action
follow us on TwitterFacebook and Telegram
Surf the Daily Hodl Mix
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/saicle/Sol Invictus