Things are going something other than “great” under Slow Joe Biden. Even when only economic issues are taking into account, there’s the rampant inflation, the recent stock market trouble, the gas price crisis, the war between the administration and oil producers, companies taking on too much debt, “zombie” companies using debt to survive when they should have died long ago, rising interest ratest placing a strain on the US Treasury, and, of course, the looming specter of massive Democrat spending plans.
And so Elon Musk is saying that a recession is inbound, as Business Insider reported, saying:
…he said the recession could last anywhere from a year to 18 months.
“Recessions are not necessarily a bad thing,” he said at the conference. “I’ve been through a few of them. And what tends to happen is if you have a boom that goes on too long, you get a misallocation of capital. It starts raining money on fools, basically.”
He went on to say that when this situation “gets out of control,” the economy has a misallocation of human capital “where people are doing things that are silly and not useful to their fellow human beings.”
Musk joked that an “economic enema” would eventually need to “clear out the pipes.”
“And sort of the bullshit companies go bankrupt, and the ones that are doing useful products are prosperous,” he said.
“And there’s certainly a lesson here that if one is making a useful product and has a company that makes sense: Make sure you’re not running things too close to the edge from a capital standpoint,” he continued. “They’ve got some capital reserves to last through irrational times.”
Musk appeared to blame the recession on President Joe Biden and his administration.
During that event Musk also praised Team Trump, at least compared to Biden, saying “This administration, it doesn’t seem to get a lot done. The Trump administration, leaving Trump aside, there were a lot of people in the administration who were effective at getting things done.”
He also attacked the rampant money printing as the cause of inflation, saying:
“The obvious reason for inflation is the government printed a zillion amount of more money than it had. The government can’t just issue checks for an excessive revenue without there being inflation. Velocity of money held constant. This is not, like, supercomplicated.”
And there’s good cause to fear a recession, not just in the US, but globally, as has been reported by many.
We're on the brink of global recession. We forecast global growth of 2.2% in 2022. All of that is "carry," i.e. a base effect from COVID recovery in 2021. Global GDP is flatlining. This is no time for aggressive monetary normalization, especially not from the ECB! With @econchart pic.twitter.com/NuBmzLebrn
— Robin Brooks (@RobinBrooksIIF) May 17, 2022
In fact, things have gotten so bad that even the regime-friendly World Bank is starting to ring the alarm bells, saying:
“The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid.”
Indeed. So buckle up and hold on, because if a regime critic like Elon and a regime friend like the World Bank are in agreement that something bad is on the horizon, there’s a good chance that it is.
By: Gen Z Conservative, editor of GenZConservative.com. Follow me on Facebook and Subscribe to My Email List
