Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months — Warns It ‘Will Get Worse’

Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months — Warns It "Will Get Worse"

Tesla and Spacex CEO Elon Musk says that the U.S. economy is probably in a recession and it could be “tough going” for 12 to 18 months. He added: “The honest reason for inflation is that the government printed a zillion more money than it had.” Elon Musk on U.S. Recession and Inflation

Elon Musk, the CEO of Tesla and Spacex, talked about the U.S. economy on the All-In podcast, published Monday.

Commenting on whether the U.S. economy is in a recession, Musk said: We probably are in a recession and that recession will get worse but these things pass and then there will be boom times again … It’ll probably be some tough going for, I don’t know, a year, maybe 12-18 months.

He added that 12 to 18 months is roughly the amount of time for a correction to happen. Recession fears have escalated recently as the Federal Reserve tightens monetary policy to help cool down inflation.

Musk explained that in his opinion, recessions are not necessarily a bad thing, emphasizing that he’s been through a few of them in his time at public companies. “What tends to happen is, if you have a boom that goes on for too long, you get misallocation of capital — it starts raining money on fools, basically,” he described.

Noting that the rising prices resulted from money printing, the Tesla boss said: The honest reason for inflation is that the government printed a zillion more money than it had … This is not like, you know, super complicated.

Musk added that countries like Venezuela had already been down the same path.

The Tesla executive is currently in the middle of a takeover bid to buy Twitter Inc. He offered the social media giant about $44 billion which Twitter has accepted. However, the deal is now on hold.

Musk has also indicated that he may seek a lower price for Twitter, stating that there could be at least four times more fake accounts than what the company has said. He opined: “You can’t pay the same price for something that is much worse than they claimed.” Tags in this story Elon Musk, elon musk inflation, elon musk prediction, elon musk recession, Tesla, Tesla CEO

What do you think about Elon Musk’s comments? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. India"s Central Bank RBI Warns Crypto Could Lead to Dollarization of Economy ECONOMICS | 18 hours ago Goldman Sachs" Blankfein Advises Companies and Consumers to Prepare for US Recession — Says It"s a "Very, Very High Risk" ECONOMICS | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSouth Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST Next articleDOJ Files First Criminal Complaint Against US Citizen Allegedly Using Cryptocurrency to Evade Sanctions Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms