In this article. Billionaire Peter Thiel warns of an impending recession in the US.
The tech industry billionaire said excessive government spending is the root cause of the looming problem.
Thiel called for reforms to prevent economic collapse.
billionaire Peter Thiel has warned of an impending recession in the US. The billionaire called the cause of the impending recession excessive government spending caused by "insane" budget deficit. According to Thiel, the U. S. government should introduce new reforms to prevent an economic collapse. Billionaire Peter Thiel spoke at the All-In Summit 2024, a three-day luxury event that has been taking place in Los Angeles since September 8. Thiel spoke alongside billionaire Chamath Palihapitiya, who warned that the U. S. economy is on the brink of recession.
Thiel then shared his thoughts on the global economy, the future of technology and the political situation.
Thiel said the U. S. economy is already on the brink of recession, supported by heavy government intervention. Thiel criticized the US government's approach to budget management, highlighting the recklessness of its spending.
the tech billionaire said that the projected budget deficit for fiscal year 2024 has already reached $1.5-1.6 trillion as of May 2023. What's more, by the start of fiscal year 2024 in October, the deficit had increased by another $400 billion. Another $400 billion will bring deficit spending closer to the $2 billion mark.
Mr. Thiel also noted that the timing of the spending was also problematic. Mr. Thiel called U. S. government spending insane.
He said the deficit should be reduced, not increased, at the top of the cycle. He then said the government's insane spending has delayed a recession that has already occurred.
Mr.
Mr. Thiel said he believes significant economic reforms are needed to get the economy back on the green track.
In his speech, Mr.
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