Over the last decade, the United States has engaged in a program of expansionary monetary policy that has flooded the market with easy credit. This has led to historically high valuations across all asset classes as investors have chased increasingly small returns coupled to increasingly high levels of risk. It has also created serious risk of eventually destroying the value of the dollar.
Shervin Pishevar is one of the nation’s top authorities on finance. He has been one of the most prominent venture capitalists in Silicon Valley for more than a decade, having founded and overseen the growth of Investment company. His company has been behind the creation of some of the most recognized names in the world of tech, including Virgin Hyperloop, Airbnb and Uber.
But in a recent 21-hour tweet storm, Shervin Pishevar made clear that he is increasingly pessimistic on the long-term outlook for the U.S. economy. He says that the experimental quantitative easing programs that the Federal Reserve has been following are likely to end in inflationary disaster. Shervin Pishevar warns that the Fed will not come to the rescue of ordinary savers. He says that, instead, the nation’s central bank will destroy all savings and liquid wealth in order to prop up the stock market.
Shervin Pishevar believes that this process is already in motion. He says that the stock market is one major crash away from the central bank reneging on its promise to undergo so-called quantitative tightening, which involves the bank unwinding its more than $1 trillion in treasure securities, as well as raising interest rates. But Shervin Pishevar says that the first hint of a real market correction will see the central bank trying to outdo Japan in market interference, buying everything that the treasury can possibly print.
This, he says, is likely to lead to serious inflation. It will present a problem chiefly to ordinary Americans, who hold their savings in cash and cash equivalents. Pishevar says that the central bank won’t think twice about sending the working-class to the soup kitchens in order to continue to make the top tenth of a percent richer. He says that this dynamic could lead to a violent revolution.