Billionaire venture capitalist Chamath Palihapitiyathinks the global economy is on track to witness two recessionary phases.
Recording a new interview with All-In Podcast, Palihapitiya stated that the world is currently experiencing a supply-side recession, which he says is the first part of the process.
“We are currently in a supply-side recession. InflationThis is the real reason that created it. We need to go through the process of getting all the excess money entered. Once we do that we will destroy demand and then that will trigger a demand side recession and destroy asset values…
I think we are still in the first phase. I don’t want to break the bad news, but the reason I think we’re still in the early stages of this process is because people are still saving a lot because of all stimulus checks.”
Palihapitiya sees little indication of when these savings are depleted and that the global economy is about to enter the second phase of recession.
“I think that will be an important signal when people are more motivated to rejoin the workforce. credit delays when it really starts to rise, that will be another signal. Because people used their savings, then they used their credit cards, then they’re going to start getting delay penalties.
When all that happens, we’ll likely be at the point where the first phase of supply-side problems is largely complete and we’ll begin to reach demand breakdown. But all these paths unfortunately lead to the same conclusion, which is that stocks are really under pressure.”
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