Venture capitalist and Social Capital owner Chamath Palihapitiya say that the world is experiencing a supply-side recession, which is the first part of the process.
In a recent interview, Palihapitiya warns that the global economy appears on track to witness phases of recession.
“We have been in a supply-side recession. That is what has caused inflation. We have to go through a process of taking all the excess money that’s been put in. And when you do that, we will destroy demand, trigger a demand-side recession, and destroy asset values,” says Palihapitiya.
Palihapitiya adds, “I think we’re still firmly in that first phase, and I hate to be the bearer of bad news, but the reason why I still think we’re in the first part of this process is that people, broadly speaking, still have a lot of savings because of all the stimulus checks. So there is still a lot of money.”…