As we American’s struggle with all the serious failures of Joe Biden’s agenda, namely inflation, rising gas prices, disaster abroad, the flood of humanity rolling across our southern border, and a stock market crash, and it is still falling. Are things going to get even worse?
According to Clinton-era Treasury Secretary Lawrence Summers, the answer to that question is “Yes.” In fact, according to him, America could soon face a major recession.
Summers said as much when speaking to CNN’s “State of the Union” host Dana Bash, as you can watch here:
As you can hear in the video, Summers, while discussing the likelihood of a recession, said, “I think when inflation is as high as it is right now, and unemployment is as low as it is right now, it’s almost always been followed within two years by recession. I think they’re wrong now if anyone’s highly confident that we’re going to avoid recession.”
Summers continued, “I look at what’s happening in the stock and bond markets. I look at where consumer sentiment is. I think there’s certainly a risk of recession in the next year. And I think given where we’ve gotten to, it’s more likely than not that we’ll have a recession within the next two years.”
The “they” to whom Summers referred is the current Treasury Secretary, Janet Yellen, who claimed recently that the risk of recession is low when she said, “I don’t think we’re going to have a recession. Consumer spending is very strong. Investment spending is solid.”
“I know people are very upset and rightly so about inflation, but there’s nothing to suggest that a recession is in the work,” Yellen added.
Given that Yellen has been wrong on nearly every major economic issue recently, particularly inflation, it’s hard to take her seriously or trust her opinion over that of Summers.
The other “they” is another bureaucrat who has been wrong on nearly everything, Jerome Powell, Federal Reserve Chairman, also claimed that no recession is on the horizon as he commented, “There is a good chance to restore price stability without a recession, without severe downturn, without materially higher unemployment.”
Summers also spoke about tariffs with Bash when he said, “We should focus on what’s important, not raising input prices for American producers so they’re less competitive, which is what much of those tariffs do. I have advocated that we need a much more strategic tariff policy with regard to China, that takes tariffs down and therefore takes prices down for American consumers and for producers.”
Given the current state of things, Summers seems at least more correct on economic issues than Yellen and Powell, particularly the recession threat. Gas is at an all-time high and has been rising constantly, inflation hit another multi-decade high last month, and the stock market is crash continues. That hardly seems a recipe for success.
Summer did take the opportunity to attack Republicans during his CNN appearing saying, “I think the banana Republicans who are saying that what happened on January 6 was nothing or OK, are undermining the basic credibility of our country’s institutions, and that in turn feed through, uh, for inflation, because if you can’t trust the country’s government, why should you trust, uh, its money?”
Regardless, he seems to have a point on the recession issue, particularly given how bad things have gotten under Biden.
All of you who believe what Yellen and Powell opined about recession, stand on your head.
We appreciate our friends at Patriot Alerts for content in this article.