{"id":13453,"date":"2022-08-08T02:18:48","date_gmt":"2022-08-08T02:18:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tesla-ceo-elon-musk-says-inflation-has-peaked-but-well-have-a-recession-for-18-months-economics-bitcoin-news\/"},"modified":"2022-08-08T02:18:48","modified_gmt":"2022-08-08T02:18:48","slug":"tesla-ceo-elon-musk-says-inflation-has-peaked-but-well-have-a-recession-for-18-months-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tesla-ceo-elon-musk-says-inflation-has-peaked-but-well-have-a-recession-for-18-months-economics-bitcoin-news\/","title":{"rendered":"Tesla CEO Elon Musk Says Inflation Has Peaked \u2014 But We’ll Have a Recession for 18 Months \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Tesla CEO Elon Musk believes inflation has peaked and the U.S. economy will be in a recession for about 18 months. \u201cWe do get a fair bit of insight into where prices of things are going over time,\u201d the billionaire explained, noting that \u201cinflation is going to drop rapidly.\u201d
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Elon Musk Explains Why He Thinks Inflation Has Peaked and Recession Will Last 18 Months<\/h2>\n

Tesla and Spacex CEO Elon Musk shared his view on the U.S. economy, inflation, and recession during Tesla\u2019s 2022 annual meeting of stockholders Thursday.<\/p>\n

Replying to a question about inflation, he explained: \u201cWe do get a fair bit of insight into where prices of things are going over time because when you\u2019re making millions of cars, you have to purchase commodities many months in advance of when they\u2019re needed \u2026 Because it\u2019s a long supply chain with a tremendous amount of inertia, so we sort of have some insight into where prices are headed over time.\u201d<\/p>\n

Musk detailed: \u201cThe interesting thing that we\u2019re seeing now is that most of our commodities, most of the things that go into a Tesla \u2014 not all, but more than half \u2014 the prices are trending down in six months, six months from now.\u201d He added:<\/p>\n

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The trend is down which suggests that we are past peak inflation.<\/p>\n<\/blockquote>\n

However, Musk noted: \u201cMaking macroeconomic prognostications is a recipe for disaster but my guess is that we are past peak inflation and that we will have a recession. I think it will be a relatively mild recession but I\u2019m just guessing here.\u201d<\/p>\n

Emphasizing that his view is \u201ctotal speculation,\u201d he opined:<\/p>\n

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Our guess is that it\u2019s a mild recession for 18 months or something like that, would be my best guess right now.<\/p>\n<\/blockquote>\n

He explained: \u201cWe don\u2019t have fundamental capital misallocations in the U.S. as we have had in the past, like leading up to 2008 where we were building primary housing units at twice the rate of household formation which obviously doesn\u2019t make sense. A lot of companies were over-levered.\u201d<\/p>\n

Musk concluded: \u201cThe leverage or debt that companies have right now is relatively low so I would say probably, you know, mild, moderate recession, maybe 18 months-ish, and I think inflation is going to drop rapidly. That\u2019s my guess.\u201d<\/p>\n

The Tesla CEO\u2019s remarks during the shareholders\u2019 meeting echoed the tweets he made on July 28. He wrote at the time: \u201cInflation might be trending down \u2026 More Tesla commodity prices are trending down than up.\u201d<\/p>\n

Musk began talking about the U.S. economy going into a recession a few months ago after revealing in March that both Tesla and Spacex saw significant inflation pressure<\/a>.<\/p>\n

\u201cWe probably are in a recession and that recession will get worse but these things pass and then there will be boom times again \u2026 It\u2019ll probably be some tough going for, I don\u2019t know, a year, maybe 12-18 months,\u201d he said<\/a> in May.<\/p>\n

He subsequently said that a recession \u201cis actually a good thing<\/a>\u201d for the U.S. economy, adding: \u201cIt has been raining money on fools for too long. Some bankruptcies need to happen.\u201d<\/p>\n

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commodity prices<\/a>, Elon Musk<\/a>, elon musk inflation<\/a>, Elon Musk inflation prediction<\/a>, Elon Musk predictions<\/a>, elon musk recession<\/a>, elon Musk recession prediction<\/a>, inflation has peaked<\/a>, recession 18 months<\/a>, tesla shareholders meeting<\/a>, us economy recession<\/a><\/div>\n<\/div>\n

Do you agree with Elon Musk that inflation has peaked and the U.S. economy will be in a recession that will last about 18 months? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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