Billionare Warns US Economy Faces Recession Risk – Here is Why

Billionaire Peter Thiel has expressed concern that the US economy would likely be in a recession if not for extensive government intervention.

During a discussion with Chamath Palihapitiya at the All-In Summit 2024, Thiel suggested that while a downturn is imminent, it has been temporarily avoided due to significant government spending.

Thiel criticized the current level of government stimulus as unsustainable, pointing to enormous budget deficits. He noted that the projected deficit for fiscal year 2024 had significantly increased from an initial estimate of $1.5 to $1.6 trillion, now expected to be around $400 billion higher.

Thiel remarked that such high deficits at the peak of the economic cycle, rather than during a recession, indicate a troubling economic situation.

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Senators Push Fed for 0.75% Rate Cut to Prevent Recession

Recent figures from the Congressional Budget Office reveal a $1.9 trillion budget deficit for the first 11 months of the 2024 fiscal year, a $373 billion increase from the previous year.

Additionally, the Treasury Department reports that the national debt has reached a record $35.273 trillion.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.