Shervin Pishevar does not mix his words when it comes to the financial world.
A man with an astounding rags to riches tale; this is definitely someone to pay attention to in this hour of economic uncertainty. Social media is in uproar after what some are referring to as a “twitter rant” from the multimillionaire Uber investor. Pishevar spent two days painting a grim picture for the future of the American economy, touching on topics such as SpaceX, immigration, bitcoin and bonds.
Pishevar’s voice has not been heard since his resignation from Sherpa Capital in December. He may have taken a break from the public eye, but the axles of his mind continued to turn, and it now appears that he has decided to make an epic comeback with everything he has been contemplating over these last two months. His posts have sparked a discussion about the future monetary system.
But amidst the social media discussion over the earthquakes set to shake the markets over the next few months, something remarkable happened:
His predictions, like clockwork, began to manifest.
Harkening back to the dark days in 1929 and 1987, Black Tuesday and Black Monday respectively, Pishevar started a running commentary on Twitter over the pallor falling over the markets. The parallels to previous stock market crashes were uncanny.
In 15 minutes, the Dow shed 300 points. Both the S&P and the Dow fell 10% from record highs at the end of last month. The potential rise of interest rates, combined with a weak bond auction, was shaking the market to the core. And there was nothing brokers, investors, or even the President, could do about it.
Overall Pishevar believes that a whirlwind like never before is about to hit the economy, and things are not going to turn out the way investors had hoped.
Shervin predicts that over the next few months, the stock market will experience a 6,000 point drop for the following reasons as taken from his twitter posts:
Rising interest rates, increasing credit account deficits and tax give aways without matching service cuts lead to a descent in panic.
Bond markets are not as deep a we all think. Every time bonds move so quickly in any direction, it ripples throughout the financial markets.
Inflation is dead. Inflation never manifests itself the way many expect. We’ve managed to export inflation for decades now.
Era of cheap money is dead. Inflation spreading, stock markets crashing, underemployment hardening into systematic economic stasis.
Gold will rise in response. Bitcoin will continue to crash but stabilize at 2-5k range and begin a more stable rise over the next 24 months.
A tectonic shift has been brewing as Silicon Valley has lost some of its competitive edge against competing zones of innovation.
As I’ve said before, Silicon Valley is no longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement. Bordless.
But while we build physical and cultural walls to keep out immigrant talent, that talent doesn’t need to come here anymore.
Speed of execution across many sectors from other regions is startling. Very little of frictions that are becoming systematic fractures here.
Meanwhile, our infrastructure is in tatters, decrypt and decaying. Our government and companies are trapped in short term thinking.
Moonshot like SpaceX plus Virgin Hyperloop. One rise but they suffer derision until teams will it to reality. Exceptions to the rule.
All institutions, government and financial, are facing a reckoning of irrelevance when it comes to what is a once in a 1000 year shift coming.
These are just a fraction of the 50 tweets that were posted by Pishevar, when reading them in isolation; it is easy to get confused. However, when you read a profound email he wrote to a friend in 2009, Shervin’s ideas come to life a little more. Essentially, what Shervin is trying to say is that the United States is no longer the only country where its citizens have been set ablaze with the entrepreneurial spirit. This passion has gone global; however, we need not see this as competition, but as a process of evolution where the worldwide economy conjoins and creates something that is bigger than America. If not, the countries that you would least expect will start to gain an economic advantage over the United States. In one of Shervins tweets he mentioned that China has just built a train station in 9 hours. If a country like China is capable of producing highly valuable infrastructure at such an accelerated speed, there really isn’t much hope for America.
The future and our hope as a nation rests in the amalgamation of the minds of great entrepreneurs from different nations to build a strong tower of economic stability that can never be dismantled. The American Dream has long expired, you only have to look around and realize that it is no longer for the elite few. People from all over the world have come to the United States and tapped into the reservoir of wealth in this great land. What we need to do is build a new American Dream.
Our financial system is on the verge of total collapse, it is essential that the old system is dismantled and a new one is built from the ground up.
This means that there must be a transformation in the culture and identity of the nation as it stands to reflect a world that isn’t restricted by the traditional boundaries that are currently stagnating our evolution.
When Shervin Pishevar mentioned in one of his tweets that the United States will lose the support of countries such as China when it comes to infrastructure, you only have to look at the tension between these two countries to realize that his prediction may not be too far from the truth. China doesn’t like the way America distributes its financial resources. Chinese billionaire Jack Ma holds a similar view to Pishevar, and believes that the entire world should have access to prosperity, and not just those with connections in high places. Ma believes that the United States is not investing and distributing its money properly, but instead the government is wasting it on costly policies to wage war against terrorism. According to Ma, this is the main reason for Americas ailing economy, and not China taking American jobs.
China is one of the many countries opposing American economic policies, and as Pishevar states, if the U.S does not start collaborating with nations to build a new future, the consequences for a once great country could be detrimental. America has some critical decisions to make, and it is essential that they are in line with the direction that the global economy is moving in.