© 2024 Blaze Media LLC. All rights reserved.
Michael Burry – the hedge fund manager who garnered prominence for forecasting the 2008 financial crisis – warned that a recession is "looming." Burry also slammed President Joe Biden, the Federal Reserve, and the U.S. Treasury for failing to forecast crushing inflation.
"U.S. Fed, POTUS, Treasury do not know history and, frighteningly, could not see devastating inflation coming," Burry tweeted on Wednesday.
Burry – who is the founder of Scion Asset Management – also shared a video clip from an episode of "Tucker Carlson Tonight" that aired in February 2021. In the Fox News video clip, Tucker Carlson highlights a tweet by Burry that said, "The U.S. government is inviting inflation with its MMT-tinged policies."
MMT is an abbreviation for Modern Monetary Theory – which is defined by Investopedia as: "Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt."
Burry made parallels to the current U.S. economy and Germany's Weimar Republic – which saw monthly inflation skyrocket by as much as 29,500% in 1923.
Tucker: Biden economic policy could 'destroy' householdswww.youtube.com
Burry — the hedge fund manager depicted by Christian Bale in "The Big Short" movie — has made several dire observations about the economy and the importance of knowing history.
"History is not useless," he tweeted in February 2021, adding that American inflation from the 1970s "is more relevant today than one might think."
Later that month, Burry warned, "Prepare for inflation."
He cautioned about inflation as far back as April 7, 2020.
"When we start working and playing again, inflation may be in store," Burry told Bloomberg.
Earlier this week, the inspiration for "The Big Short" book explained, "When you see mention of the strong dollar, the almighty dollar, please remember this is only in relation to other fiat currencies. The dollar is not at all strong, and it is not getting stronger. We all see it every single day in prices of everything."
Last month, Burry posted an ominous message on Twitter, "As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I'm not smiling."
Burry – who regularly deletes his tweets – wrote in May, "U.S. Personal Savings fell to 2013 levels, the savings rate to 2008 levels — while revolving credit card debt grew at a record-setting pace back to the pre-COVID peak despite all those $trillions of cash dropped in their laps. Looming: a consumer recession and more earnings trouble."
Earlier this week, Burry warned that Americans are exhausting their savings accounts at alarming rates.
"At the last 12mos' rate of depletion of savings, could hit that level between September and December this year. Borrowing time," he said.
In June 2021, Burry sounded the alarm about the downfall of cryptocurrencies and meme stocks.
"All hype/speculation is doing is drawing in retail before the mother of all crashes," he wrote on Twitter. "When crypto falls from trillions, or meme stocks fall from tens of billions, Main Street losses will approach the size of countries."
Burry shot to fame after foreseeing and profiting off the U.S. subprime mortgage crisis and housing bubble that burst between 2007 and 2010.
Want to leave a tip?
We answer to you. Help keep our content free of advertisers and big tech censorship by leaving a tip today.
Paul Sacca is a staff writer for Blaze News.