#Billionaire Peter Thiel Warns US Close to Recession, Says Economy Would Be Shaky if Not for Crazy Budget Deficit
Peter Thiel Warns #USEconomy Nearing Recession Without Massive Government Spending
Tech billionaire Peter Thiel believes the US economy would already be in a recession if not for extensive government intervention. Speaking at the All-In Summit 2024 alongside fellow billionaire Chamath Palihapitiya, Thiel emphasized that while an economic downturn is on the horizon, it is being delayed by heavy government spending.
Thiel expressed concerns that this stimulus-driven economic support is unsustainable, pointing to "crazy" budget deficits as a major issue.
âI suspect weâre close to a recession. Iâve felt this way for a while, but itâs being prevented by massive government spending. In May 2023, the deficit projection for fiscal year 2024 (October 2023 to September 2024) was around $1.5 to $1.6 trillion. Now, it looks like it will be $400 billion higherâŠ
A massive deficit was expected, but itâs far worse. If we hadnât found another $400 billion to add to this deficit â at the peak of the economic cycle, when deficits should be reduced, not increased â the situation would be much shakier.
We have too much debt and insufficient sustainable growth.â
According to data from the Congressional Budget Office (CBO), the US government recorded a $1.9 trillion budget deficit during the first 11 months of fiscal year 2024, reflecting a $373 billion increase compared to the previous year. Additionally, the US national debt has surged to a record $35.273 trillion, per the Treasury Department.
Source - dailyhodl.com
