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.

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.