Twitter CEO Elon Musk said during an interview Tuesday night that he believes that the U.S. might be on the verge of serious financial issues later this year due to a variety of factors.
Speaking to Fox News host Tucker Carlson, Musk said that the collapse of some major banking institutions like Silicon Valley Bank was an indicator that there are serious conditions on the horizon.
“We have a situation here where it’s not merely — it’s not that the canary in the coal mine has died, but the miners are starting to die, too,” he said. “Silicon Valley Bank collapsing overnight is one hell of a big canary. … I think that there is a serious danger with the global banking system.”
Musk said that he believes that commercial real estate properties that have been vacated due to the pandemic will exacerbate problems for banks because those were considered to be hard assets that had a lot of value for the banks.
“So, we really haven’t seen the commercial real estate shoe drop,” he said. “That’s more like an anvil, not a shoe. The stuff we’ve seen thus far actually hasn’t even — it’s only slightly real estate portfolio degradation, that will become a very serious thing later this year in my view.”
Musk warned that inflation was going to continue to get worse because he said that the Fed won’t reduce interest rates during an election year.
“Inflation is going to happen no matter what,” Musk said.
Musk went on to slam Congress for passing the COVID stimulus bills because they “were not paid for” and they greatly exacerbated inflation.
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“As the old saying goes, there’s no free lunch,” he said. “So if you could just issue massive amounts of money without negative consequences, why don’t we just take that to the limit, make everyone a trillionaire? They tried that in Venezuela. How’d that work out?”
WATCH:
🚨 Elon Musk Predicts a Financial Crisis Happening Later This Year
.@elonmusk explains that money is simply digits in a database, reflecting the production of businesses and services in an economy. If both factors stay constant, inflation can be controlled. But when money enters… pic.twitter.com/g9cn0ziP4x
— Dr. Simon Goddek (@goddeketal) April 19, 2023