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Recap November 14: Elon Musk Manipulating Markets Again? Inflation Economic Crisis, Dollar In Trouble (Recap ep149)

In this week’s Recap, Marcello tells us about how Elon Musk might be manipulating the markets; Are we walking into an economic crisis driven by inflation?; Due to the increase in the total amount of dollars in existence, holding it’s value is now a problem.

Tesla CEO Elon Musk on Saturday asked his 62.5M followers on Twitter in a poll if he should sell 10% of his Tesla stock, already facing a $15B tax bill & to pay for an upcoming possible “billionaires tax bill”. The poll received nearly 2M responses in 7 hours after he posted it, with 55% of respondents approving the sale of the shares. Musk’s shareholding in Tesla comes to about 170.5M shares as of 06/30 & selling 10% of his stock would amount close to $21B, based on Friday’s closing.
U.S. stocks fell Wednesday after inflation hits a 3-decade high, added to concerns over price pressures in the global economy. Shares of tech & other fast-growing firms lagged behind the broader market, as rising bond yields threatened the value of earnings. Dow -0.66% (-240.04) at 36,079.94, S&P 500 -0.82% (-38.54) at 4,646.71, NASDAQ -1.66% (-263.84) at 15,622.71.
Between March 2020 & October 2021, the total amount of U.S. dollars in existence increased by 36%. With the U.S. money supply expanding rapidly as a consequence, inflation is far higher than what is actually being reported. In the last 18 months, the total amount of dollars in circulation has increased +336%. This is totally unsustainable, yet the U.S. government is proposing to spend even trillions more. If the present trajectory continues, the currency is headed for a collapse in valuation.
As inflationary expectations settle in, investors in the U.S. & elsewhere are buying more gold and silver. Gold was already at $1.833.00 on Tuesday, increased another +1.60% to $1862.30 Wednesday morning. Silver rose +3.05% at $25.09 in early training.
Amazon is now seeking approval from the U.S. Federal Communications Commission to deploy more than 4,500 additional satellites, as part of the company’s effort to deliver broadband internet to areas around the world that lack high-speed service. Amazon had said previously it planned to spend at least $10B to build 3,236 such satellites, through its Project Kuiper program. If approved a total of 7,774 satellites will actually be deployed for the project completion.

Russia increases its military presence near Ukraine border; China’s sixth plenum will consolidate Xi Jinping’s power; Rivian Automotive IPO is the largest in the U.S. since 2014; Bitcoin hit a new all-time high on Tuesday morning; Bipartisan bill aims to hinder acquisitions by tech giants; U.S. to lift pandemic travel restrictions to all countries.

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