Elon Musk, the CEO of Tesla and founder of SpaceX, is warning of the risk that the world is facing a “1929-like great depression.” The entrepreneur and philanthropist has predicted that the financial markets are facing a new “era of volatility” which is likely to cause a “very severe recession.” At the same time, he says that “a lot of the companies that would be created in the future would be created by the government,” and that “the government could create almost anything and make anything obsolete.”
#Ark Invest CEO Warns Fed's Actions Could Lead to 1929-Like Great Depression — #ELONMUSK Musk Agreeshttps://t.co/o7Iz1qa1vv
— THE TIMES CRYPTO (@cypher_eye) November 14, 2022
1.What is the “1929-like great depression?”
The 1929-like great depression is a potential economic crash that would impact the U.S. economy greatly. The problem with this is that the U.S. government is already struggling due to the large amount of debt it has accumulated, and a large amount of that debt is being held by the Federal Reserve. This means that if there were another 1929-style crash, the Federal Reserve would have to print money in order to pay off some of its old debts and continue making payments on new ones.
This would cause inflation because there would be more money circulating in the economy—therefore making prices rise—and it would also cause the dollar to become worthless because it would be worth less in relation to other currencies like gold or silver (which are considered assets).
The 1929-like great depression would not only be an economic crash, but it would also have huge impacts on our economy as a whole.
2.What should you do to prepare for the “1929-like great depression?”
- Have enough money saved up to cover six months of living expenses.
- Plan for a short-term liquidity buffer.
- Have a small emergency fund.
- Have a plan for your investments.
- Do not invest in high-risk, high-return opportunities.
- Do not invest in big companies that depend on the economy.
- Invest in a diverse portfolio of investments.
- Learn to trade.
- Read up on history.
3.What could the “1929-like great depression” lead to:
The 1929-like great depression is predicted to lead to an even worse outcome, according to Elon Musk. The great depression of the 1930s was a worldwide economic depression that began in 1929 and lasted until the late 1930s. It was the worst economic depression ever in the 20th century. It was preceded by the Wall Street Crash of 1929 and was followed by the Great Recession in 2008. The Great Depression began in the United States but quickly spread throughout much of the world.
4.What is the advice to the public?
Elon Musk, the founder of Tesla, SpaceX, and PayPal, has warned that the world is headed towards a “1929-like great depression” due to a “catastrophic collapse” of the global economy. Now, while many people would disagree with him, it is important to note that Musk has been right about a lot of things in the past. Elon Musk – the World’s Richest Man and Ark Invest CEO, warns of a “1929-Like Great Depression” What should you do to prepare for the “1929-like great depression?”
- Have enough money saved up to cover six months of living expenses.
- Plan for a short-term liquidity buffer.
- Have a small emergency fund.
- Have a plan for your investments.
- Do not invest in high-risk, high-return opportunities.
