It’s been said that all financial innovation is reducible to new ways of packaging, repackaging and selling debt. Similarly, it could be said that all central banking policies may simply amount to new ways of kicking the can of financial reckoning down the road and then selling it to the public as some sort of ingenious solution to an intractable problem.
Shervin Pishevar would probably argue in favor of the latter position. Shervin Pishevar is one of the most influential figures in the world of tech finance. He is the founder and president of Investment company, a venture financing company that has been behind the creation of some of the most important ventures in the technology sector. Companies that Investment company has been instrumental in the creation of include Virgin Hyperloop, Uber and Airbnb. Additionally, Shervin Pishevar himself has been behind the creation of a large number of tech companies, including Social Gaming Network, WebOS and Ionside.
But Shervin Pishevar may be best known for the many insights that he shares with the world via his Twitter feed. With more than 100,000 followers, Shervin Pishevar has the eyes of some of the top thought leaders and influencers in the nation. Therefore, his many opinions often carry serious weight among the technological elite.
Recently, Shervin Pishevar discussed the use and overuse of quantitative easing by the nation’s central bank. The Federal Reserve has embarked on a program of purchasing treasury securities with money created from thin air over the last decade. This program, in conjunction with the lowering of interest rates, has flooded the market with cheap credit. It has also enabled the government to continue running massive deficits.
While quantitative easing has succeeded in spurring on one of the longest bull markets in the history of the stock market, Pishevar warns that it is quickly reaching its limits. Eventually, says Pishevar, even the credit of the United States will be downgraded to junk in the eyes of the world’s bond buyers if they fear that the country will need to sharply devalue its currency in order to make good on its obligations.