"This Is What's Going To Happen In Next 15 Days: Taking $30 Trillion Out of the $85 Trillion Global Economy"

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Chamath Palihapitiya, 6/26/22:

"This Is What's Going To Happen In Next 15 Days:

Taking $30 Trillion Out of the $85 Trillion Global Economy"

"The global economy is heated up specifically after the free money injected by the governments during the pandemic outbreak. That free money has popped up the prices of commodities, assets and everything traded in the economy. The Russia-Uterine War has made the situation worse. Consequently, the over-heated global economy is on the verge of a recession. US reported the 40 years highest inflation. And to counter the surging inflation Fed has announced a 75-basis point interest rate hikes. Now the international institutions are ringing the alarms of economic slowdown. IMF also cut down the global growth outlook again. 

On these concerns and fears Chamath Palihapitiya appeared in All-In-Podcast with David Sachs. Chamath is of the view that this is the beginning of what we were warning before, and after the Fed’s rates hikes if anybody thinks that the economic situation would be normal in days or weeks or even in next 6 months, that is not true. He thinks that bubbly asset prices would calm down to their actual level in next 18 to 36 months. Chamath has also criticized the modern monetary theory where some of the economists think that the they would keep the economy smooth by printing and injecting the money into the economy. And they haven’t seen the result of money printing during the pandemic outbreak then they are ignoring the reality intentionally. David Sachs agreed with Chamath’s point of view that the worst is not going to end soon rather it will take years to get it normalized. David pointed out the housing prices which have surpassed the historic highs and are making the economic situation worse."

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"Wealth Destruction Of 90% Is Next" (Excerpt)

by Egon Von Greyerz

Excerpt: "The Dow to fall 90% in real terms: Very few people realize the enormous wealth transfer that will take place in the next 5 years. Most will lose 75-90% of their wealth and some 100%. In 1929 the Dow peaked at 400 and then collapsed to 40 in 1932. This 90% fall occurred at a point when economic conditions in the US and globally were a lot more benign then they are today. Since 1981 the Dow has gone up 22x. With the world experiencing a historical asset and credit bubble of unprecedented proportions, an implosion of debt could easily see the Dow down 90% like in 1929-32 or probably even 95% to get back to the 850 level where this bull market started. This would mean a fall of 95% in real terms. 

I say real terms because it is not unlikely that we will see the biggest money printing experiment in history with central banks worldwide printing trillions or even quadrillions of dollars in a futile attempt to save the financial system and the world economy. This massive money printing could lead to the Dow reaching much higher levels in nominal or hyperinflationary terms."

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