Shervin Pishevar is a business mogul in the United States. He is one of the experienced angel investors and venture capitalist who has supported the growth of some of the brilliant Silicon Valley startups. Recently, Pishevar went on a tweet-storm indicating why he thinks the US economy is losing. He also gave his views on other topics such as globalization, cryptocurrencies and the bond market among other finance-related issues. The storm consisted of 50 consecutive tweets, each one of them indicating why he thinks the economic decline of the US economy is inevitable.
Shervin Pishevar is not a person who can be ignored when he talks about matters related to the financial industry. He understands them better than many other people. When he says that the US economy is on the decline, he has sufficient facts to support his argument. Let’s look at some of the tweets he posted.
Shervin Pishevar pointed to an end of an era for cheap money. He says that due to increasing interest rates it is now very hard to get cheap money. After a few years of deflation in many countries, inflation is now starting to show and investors are in a panic. Inflation gives bondholders sleepless nights since it leads to a decline in the fixed-rate payments as inflation goes up to match the interest rates. The New York Times reports also support his argument by showing that there is massive sell-off in the stock market which has led to the drop in the market.
Shervin Pishevar was not done yet; he touched on underemployment as one of the glaring nightmares to the economy of the United States. Overqualified and well-educated employees are being forced to take up jobs that require minimal skills. The jobs end up paying them poorly. This phenomenon is familiar to many people since we have seen our family members and friends choosing jobs that pay less since they do not get jobs in their areas of specialization.
All these issues paint a gloomy picture of the future of the economy. Pishevar believes that unless something is done, the fall of the US economy is unstoppable.