The current banking turmoil has revived the ghosts of the 2008 financial crisis, while the great unity around support for Ukraine at war with Russia is showing cracks.
Elon Musk sees himself as a global CEO.
He gives his opinions on all topics without exception and does not care about the impact that these opinions may have.
Tesla’s Billionaire CEO (TSLA) – Get a free reportand founder of SpaceX is a maverick who has built his influence and popularity in recent months by taking controversial positions and making thunderous statements on various topics, including politics and the economy.
He has become one of the voices that matter, both nationally and internationally, capable of orchestrating, with a series of tweets, for example, a protest movement against a powerful international organization like the World Economic Forum. The last WEF summit, held in January in the traditional resort of Davos in Switzerland, will be remembered more for the debate initiated by the billionaire on the usefulness of this forum than for the issues addressed.
Banking Crisis + Russia-Ukraine War
Musk continues to assume this role of agitator, positioning himself as the standard bearer for those bent on demolishing progressive values in the new culture war. He gave the enemy a name, the “awakened mind virus,” an umbrella expression that encompasses gender identity, diversity in all its forms, and ESG—Environmental, Social, and Corporate Governance.
It is with this in mind that the billionaire has just given his opinion on the three responsible for the problems that currently affect Americans.
Millions of employees are refusing to return to the office despite calls from CEOs like JPMorgan Chase’s Jamie Dimon who believe corporate culture is being lost with remote work. This new situation was caused by the covid-19 pandemic, which forced the authorities to impose lockdowns. Divisions in American society have also deepened between progressives and conservatives, leaving little room for centrists.
For a few weeks, a banking crisis, the biggest since 2008, has shaken investors and has already caused the bankruptcy of three US banks: Silicon Valley Bank, Signature Bank and Silvergate Bank. Doubts persist about the soundness of many regional banks.
The irony is that this crisis is rooted in the measures put in place and monetary policy to avoid a recession when covid hits. The Federal Reserve, at the time, cut interest rates to almost 0 and the federal government flooded households with money through stimulus packages.
This led banks to invest in Treasury bonds and municipal bonds, the yields of which were attractive. However, these banks did not hedge against the risk that interest rates could rise, a prospect that would make money more expensive again.
The Fed has been forced to raise interest rates for several months to combat inflation fueled by the flooding of the economy with money during covid. This policy caused a depreciation of the banks’ asset portfolios and pushed bank clients to withdraw their deposits.
On the international stage, the Biden administration is witnessing the emergence of a Russia-China alliance in the framework of the Russia-Ukraine war. This conflict, sparked by Russia’s invasion of Ukraine on February 24, 2022, has entered its second year despite efforts by NATO and its allies to isolate Russian President Vladimir Putin and NATO military support for Ukrainian forces.
The lack of a visible end to this war seems to be affecting the opinion of some elected officials. Florida Republican Governor Ron DeSantis, a presumptive presidential candidate, referred to the Russia-Ukraine war as “a territorial dispute between Ukraine and Russia,” noting that “controlling the economic, cultural, and military power of the Chinese Communist Party” is vital. .
Since then, DeSantis has regressed.
Dr. AS Fauci, Nuland and the Federal Reserve
But his comments reflect the current uncertainty among some lawmakers who wonder whether continuing to support Ukraine is in the best US national interest.
In January, a Gallup poll It showed that 65% of American adults were in favor of the United States supporting Ukraine in taking back its territory, even if it results in protracted conflict. This figure has remained stable since the beginning of the war. Meanwhile, 31% of those polled continue to say they would prefer the US to work to end the war quickly, even if it allows Russia to keep its territory.
Musk is one of those advocating for a peace agreement. He has accused US diplomats of warmongers.
It is in this context that he has just agreed with technology investor David Sacks, who is also his friend, that the three people responsible for the current problems facing Americans are Dr. Anthony Fauci, who was the face of the American response to covid. -19. 19, the Federal Reserve, which allowed inflation to get out of control by printing money, and the US Under Secretary of State for Political Affairs, Victoria Nuland.
“They’re literally doing the opposite of what they’re supposed to. I mean literally the opposite. It should be easy to replace them because it’s so obvious they’re failing, but you can’t or it seems like you can.” Not because, again, we can’t get honest media coverage of the situation,” tech investor David Sacks told conservative commentator Glenn Beck.
“Exactly,” Musk agreed.
The Fed did not respond to a request for comment.
Musk accused Nuland of failing to work toward a peaceful solution to Russia’s war in Ukraine last month.
“No one is driving this war more than Nuland,” the billionaire said on February 22.
Nuland responded two days later.
“I would start with a basic fact here… that if this war is going to end, it could end tomorrow if Vladimir Putin decided to end it and withdraw his troops,” he said.
“So this is not about us. It is about the choices that Vladimir Putin has made to try to rip his neighbor to pieces. And if we allow this as the United States, if we don’t support the victim in this aggression, then this aggression will be replicated across the planet for years to come.”