Elon Musk predicts US recession ‘inevitable’

Billionaire Elon Musk has predicted that an economic disaster will soon occur that would cause ripples around the world.

Billionaire Elon Musk has predicted that an “inevitable” recession in the United States is likely to happen “short-term” and has described all the consequences it would have for the rest of the world.

Mr Muskthe CEO of Tesla and SpaceX, spoke at the Qatar Economic Forum ‘at night. He was interviewed by John Micklethwait, Bloomberg’s editor-in-chief.

Micklethwait asked him about .’s repeated comments US President Joe Biden and his top officials in recent days denied that a recession was inevitable.

“Well, a recession is inevitable at some point,” Musk said.

“Whether there will be a recession in the near term, I think is more likely than not. It’s not a certainty. But it seems more likely than not.”

In an interview with the Associated Press last week, Mr Biden was more optimisticwho took on a defiant tone when asked whether a battle against rising inflation would plunge his country into recession.

“It’s not inevitable,” he insisted. His comment was subsequently echoed by other officials.

“I don’t think a recession is inevitable at all,” Treasury Secretary Janet Yellen told the ABC show This week during the weekend.

“Obviously, inflation is unacceptably high. Taking it down is President Biden’s top priority. And (Federal Reserve chairman) Jerome Powell has said his goal is to reduce inflation while maintaining a strong labor market.

“It will take skill and luck, but I believe it is possible. I don’t think a recession is inevitable.”

Brian Deese, director of the National Economic Council, also supported the president.

“Not only is the recession not inevitable, but I think a lot of people underestimate those strengths and the resilience of the US economy,” he said. Fox News Sunday

Mr. Musk’s assessment of the situation was just a small moment in an extended interview with Micklethwait. He was also asked his stalled deal to buy Twitterhis vision for the future of the social media platform, his layoffs at Tesla, his support and advocacy for cryptocurrency, and of course his political views.

“There is a limit to what I can say in public as it is a rather sensitive issue. So I’m going to have to be measured in my responses here, so as not to cause incremental lawsuits,” Musk said of the Twitter deal.

“There are still some unresolved cases. You have probably read about whether the number of fake and spam users on the system is less than 5 percent, as Twitter claims. That, I think, is probably not most people’s experience when using Twitter. So we are still waiting for a solution on this.

“Then of course the question is whether the part of the debt will come together and then the shareholders will vote in favour. So those are the three things that need to be resolved before the transaction can be completed.”

Micklethwait asked him if there was “any limit at all” on who he thought should be allowed on the platform.

“My aim for Twitter or in general for the digital city square would be that it is as inclusive – in the broader sense of the word – as possible. (And) that it’s an attractive system to use,” Musk said.

“So ideally, I’d like to eventually get 80 percent of that in North America, and maybe half the world, on Twitter in some form. And that means it has to be attractive to people. It shouldn’t be a place where they hang out.” feel uncomfortable or harassed, or they just won’t use it.

“I think there’s a big difference between freedom of speech and freedom of reach, in the sense that in the United States, of course, you can go right in the middle of the town square and yell just about anything you want. You annoy the people around you, but you can really just yell what you want in a crowded public space, more or less.

“But whatever you say, however controversial, it doesn’t have to be broadcast nationwide. So I think Twitter’s approach in general should be to let people say what they want within the bounds of the law, but then restrict who sees it based on a particular Twitter user’s preferences.

“So if your preferences are to see or read something, that’s what you get. But if your preferences are that you prefer not to see comments that you find offensive in some form, then you can have that as a setting and not see it.

“But somehow we have to take the steps that entice most people to want to be on Twitter and enjoy it and find it informative, and entertaining, and funny and useful.”

When asked if he wanted to become CEO of Twitter and whether he would continue to hold that job at Tesla and SpaceX, Musk said his exact job title was not that important.

“I would control the product. That’s what I do at SpaceX and Tesla,” he explained.

“Whether I’m called the CEO or something else is far less important than my ability to steer the product in the right direction.”

The next topic was Tesla’s plan to lay off 10 percent of its salaried staff. That has been a source of confusion since it was first reported at the beginning of the month, and on Sunday two former Tesla employees have filed a lawsuit against the company had violated US laws on “mass layoffs”.

“Initially you said that 10 percent (of the jobs) would be cut, then 10 percent of the pay would be cut, then the pay would remain the same and the total workforce would increase. What’s the number?” asked Micklethwait.

“Tesla will reduce its salaried workforce by approximately 10 percent over the next three months,” Musk said.

“We expect our workforce to grow hourly. But on the remunerated side, we grew very fast and in some areas we grew a little too fast. It therefore requires a reduction in salaried staff.

“We are employed for about two-thirds an hour and one-third. So technically I think a 10 percent reduction in salaried staff is just a 3 to 3.5 percent reduction in the total workforce.”

He also dismissed that aforementioned lawsuit, labeling it “trivial”.

“Let’s not read too much into a preemptive lawsuit that has no standing; that’s a minor lawsuit of minor importance,” he said.

“Anything to do with Tesla is getting big headlines, whether it’s a bicycle accident or something much more serious. It seems that anything related to Tesla gets a lot of clicks, whether it’s trivial or important. I would put that lawsuit you refer to in the trivial category.”

Mr. Musk recently doubled his support for the cryptocurrency dogecoin, which has lost about 90 percent of its value over the past 13 months.

He and his companies are currently facing a $370 billion class action lawsuit alleging complicity in a “dogecoin crypto pyramid scheme”.

“Since Mr. Musk and his companies began buying, developing, promoting, supporting and operating dogecoin in 2019, Plaintiff and the class have lost approximately $86 billion ($A124 billion) in this crypto pyramid scheme,” the lawsuit alleges. .

Mr. Musk told Micklethwait that he “never said that people should invest in crypto”.

“In the case of Tesla, SpaceX and myself, we all bought some bitcoin. But it’s a small percentage of our total cash assets. So not that important.

“I also bought some dogecoin, and Tesla accepts dogecoin for some merchandise, and SpaceX will do the same. And I plan to continue supporting dogecoin, because I just know a lot of people who are not that rich who have encouraged me to buy dogecoin buy and support, so I respond to those people.

“Just people, when I walk through the factory at SpaceX or Tesla, they ask me to support dogecoin, so I do.”

Finally, Mr. Musk was questioned about who he will eventually run for in the 2024 US presidential election.

He has previously stated that he is open to supporting Florida Governor Ron DeSantis, a Republican. Micklethwait asked if that was still the case, and if he would consider supporting Donald Trump if he were to join again.

“I was just asked if I had decided who I would support in the next presidential race. And I said I hadn’t decided who I would support yet. Then I was asked, ‘Who might you lean towards?’ I may have said DeSantis,” Musk replied.

He insisted on his opinion on Mr Trump, saying only, “I don’t think I have made a decision on that election at this point.”

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