On Friday, Twitter CEO Jack Dorsey expressed his pessimism about the future of the US economy. His remarks came as the Biden administration began to back away from forecasts that inflation would be a minor blip on the happiness monitor. Since the summer, Americans have been experiencing inflation, with prices rising on a wide range of commodities.
According to Jack Dorsey, hyperinflation will occur in the United States soon. He assures his 6 million Twitter followers that “hyperinflation is going to alter everything.” It’s occurring right now.
In recent talks about Venezuela, the term “hyperinflation” has been often used. The impact of hyperinflation on that country was encapsulated in a 2019 article from CNBC. According to the report, the country’s GDP has declined by 65 percent in six years. Hyperinflation is a state in which prices rise fast and cause currency depreciation.
Inflationary pressures will likely endure longer than expected, according to the chairman of the US central bank, maybe beyond 2020. On Friday, Jerome Powell dropped the term “transitory” and instead used the phrase “temporarily elevated” to characterize inflation.
According to the Financial Times, hedge fund manager David Einhorn wrote to US Federal Reserve head Jerome Powell, saying, “Inflation is here, it’s here, and it is ready to intensify.” An economist told the newspaper, “The Fed has not moved a finger to battle inflation.”
Inflation is like COVID-19: if it gets out of hand, it will take over politics, according to an economist, who added that government expenditure might play a significant role in how the country is affected by inflation. In the Wall Street Journal, author Holman Jenkins Jr. said, “Inflation Is the Mother of Big Political Change.”
The government debt was 34 percent of GDP in 1977. It is now 125 percent. In addition, the number of Americans who have received direct government assistance has tripled. The $400 billion interest cost on the national debt may be doubled or tripled if interest rates rise. This item might overtake Social Security and Medicare as enormous single-budget spending in the blink of an eye.