Are things about to worsen for the United States, which is already grappling with the many-headed hydra of Biden’s failings, including inflation, increasing gas costs, tragedy overseas, a wave of refugees pouring over the southern border, and a stock market crash?
Lawrence Summers, Clinton’s former Treasury Secretary, says the answer is “yes.” In fact, he believes that the United States may be on the verge of a severe recession shortly.
In an interview with CNN’s “State of the Union” anchor Dana Bash, he stated much. It’s typically followed by a recession within two years when inflation is as high, and unemployment is as low as it is right now.” If anyone thinks we’ll avoid recession, I believe they are mistaken today.
"It's more likely than not we'll have a recession within the next two years."
— CNN (@CNN) June 12, 2022
Former Treasury Secretary @LHSummers tells @DanaBashCNN why he disagrees with current Treasury Secretary Janet Yellen's projection that a recession is not on the horizon. @CNNSotu #CNNSOTU pic.twitter.com/gzrR3B6TBy
“I keep an eye on the stock and bond markets,” he says. I keep tabs on the mood of the general public. There’s a good chance that the economy will go into recession within the following year. Given where we are now, there is a good chance we’ll see a recession in the next two years.
Summers referred to Janet Yellen, the current Treasury Secretary, as “them.” Yellen recently stated that the chance of a recession was minimal, saying, “I think we’re in a perfect place.”
“I don’t believe there will be a recession this year.” Spending by consumers is soaring. We have reasonable expenditure on investments.
Nothing indicates that a recession is on the horizon, even though many people are concerned about rising prices.
Regarding contemporary economic issues, Yellen has been utterly incorrect on nearly every key one. She has been particularly wrong on inflation.
Federal Reserve Chairman Jerome Powell, another bureaucrat who has been incorrect on virtually everything, stated that no recession was imminent, adding that there is a “strong opportunity to restore price stability without a recession, without a severe downturn, without meaningfully greater unemployment.”
Speaking to Bash, Summers also mentioned tariffs, saying:
Levies like this should be avoided instead of boosting input prices for American producers and reducing their competitiveness. To lower prices for American consumers and companies alike, I’ve argued that we require a more targeted tariff strategy toward China.
It appears like Summers is at least more right than Yellen and Powell regarding economic difficulties, particularly about the recession. The gas price is at an all-time high, inflation has hit a new multi-decade high, and the stock market is in freefall. That doesn’t sound like a formula for success, does it?
However, during his CNN interview, Summers also used the occasion to bash Republicans, saying:
Because if you can’t trust your government, why should you trust its money? That’s what I think happened on January 6, and I think the banana Republicans who claim otherwise are destroying the core legitimacy of our country’s institutions. That, in turn, feeds through to inflation.”
Regardless, he appears to be on the right track regarding the current economic crisis.
What causes inflation so high, and how long will it last? As a result of the COVID-19 epidemic, food and energy expenses have increased, which has worsened inflation. What can we do now that it’s all over the news? If it continues to rise, it will strike dread into the hearts of everyone.