The current banking turmoil has rekindled the ghosts of the 2008 financial crisis, while the great unity around supporting Ukraine at war with Russia is showing cracks.
Elon Musk considers himself a global CEO.
He gives his opinions on all issues without exception and is not concerned with the impact those opinions may have.
Tesla billionaire CEO (TSLA) – Get a free reportAnd the founder of SpaceX is an independent person who has built his influence and popularity in recent months by taking controversial positions and making loud statements on various topics, including politics and economics.
It has become one of the important voices, both locally and internationally, being able to organize a series of tweets, for example, a protest movement against such a powerful international organization as the World Economic Forum. The last summit of the World Economic Forum, held in January in the traditional seaside resort of Davos in Switzerland, will be remembered more for the discussion initiated by the billionaire about the usefulness of this forum than for the topics discussed.
Banking crisis + Russian-Ukrainian war
Musk continues to play that agitator role, by positioning himself as the standard-bearer for those who are determined to demolish progressive values in the new culture war. He named the enemy, the “awakened mind virus,” an euphemism that encompasses all forms of gender identity, diversity in all its forms, and environmental, social, and corporate governance.
In that sense, the billionaire has thrown his weight on the three sides responsible for the problems currently affecting Americans.
Millions of employees refuse to return to the office despite calls from CEOs, such as JPMorgan Chase’s Jamie Dimon, who believe company culture is being lost with remote working. This new situation was caused by the COVID-19 pandemic, which forced the authorities to impose a lockdown. Divisions in American society between progressives and conservatives have also deepened, leaving little room for centrists.
For a few weeks now, a banking crisis, the largest since 2008, has shaken investors and has already led to the collapse of three US banks – Silicon Valley Bank, Signature Bank and Silvergate Bank. Doubts remain about the safety of many regional banks.
The irony is that this crisis has its roots in the measures that were put in place and in the monetary policy to avoid recession when infected with the virus. The Federal Reserve, at the time, lowered interest rates to nearly 0 and the federal government flooded households with money via stimulus packages.
This led the banks to invest in treasury bonds and municipal bonds, which had attractive returns. However, these banks did not protect themselves from the risk of rising interest rates, a possibility that would make money very expensive again.
The Federal Reserve had to raise interest rates for several months to fight inflation fueled by the flood of money on the economy during the spread of the virus. This policy caused a decrease in the value of the banks’ asset portfolios and prompted the banks’ customers to withdraw their deposits.
On the international level, the Biden administration is witnessing the emergence of a Russian-Chinese alliance within the framework of the Russian-Ukrainian war. This conflict, triggered by Russia’s invasion of Ukraine on February 24, 2022, is now in its second year despite efforts by NATO and its allies to isolate Russian President Vladimir Putin and NATO’s 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, the presumptive presidential nominee, has referred to the Russo-Ukraine War as a “territorial conflict between Ukraine and Russia”, stating that “an examination of the Chinese Communist Party’s economic, cultural and military might” is vital.
DeSantis has since backed off.
Dr.. Fauci, Noland, and the Federal Reserve
But his comments reflect the current uncertainty, with some lawmakers questioning whether continuing to support Ukraine is in the best national interest of the United States.
In January, A.J Public opinion poll It showed that 65% of American adults would prefer the United States to support Ukraine in reclaiming its territory, even if it leads to protracted conflict. This number has remained constant since the beginning of the war. Meanwhile, 31% of respondents continue to say they would prefer to see the United States work to end the war quickly, even if it allows Russia to keep its territory.
Musk is one of those calling for a peace agreement. He accused US diplomats of being warmongers.
In this context, he just agreed with technology investor David Sachs, who is also his friend, that the three most responsible for the current problems facing Americans are Dr. Anthony Fauci, who was the face of the US response to the COVID-19 pandemic, the Federal Reserve, which allowed inflation to spiral out of control. By printing money, and the US Undersecretary of State for Political Affairs, Victoria Nuland.
“They’re literally doing the opposite of what they’re supposed to do. I mean the exact opposite. It should be easy to replace them because it’s so obvious they’re failing, but you can’t or look like you can,” technology investor David Sachs told conservative commentator Glenn Beck. “Not because again we don’t.” We can get honest media coverage of the situation.”
And Musk agreed with the “accuracy.”
The Fed did not respond to a request for comment.
Musk accused Nuland of not working for a peaceful solution to Russia’s war in Ukraine last month.
“Nobody is paying more for this war than Noland,” the billionaire said on February 22.
Noland replied two days later.
“I’m going to start with a basic fact here… that if this war is going to end, it could end tomorrow if Vladimir Putin chooses to end it and withdraw his forces,” she said.
“So, this is not about us. This is about the choices that Vladimir Putin made to try to bite off bits of his neighbor. And if we allow it like the United States, if we don’t support the victim in this aggression, then this aggression will be repeated across the planet in the years to come.” .