Former Treasury Secretary Summers Warns of Looming US Recession

U.S. consumer prices rose 5.7% over the past year, the fastest pace in 39 years, as a surge in inflation confronted Americans during the holiday shopping season.

Summers, during an interview on a Bloomberg Economics podcast, said the Federal Reserve has been slow to see the dangers of inflation.

"If I thought we could sustainably run the economy in a red-hot way, that would be a wonderful thing, but — and this is the excruciating lesson we learned in the 1970s — the consequence of an overheating economy is not merely elevated inflation, but constantly rising inflation," Summers said. "That’s why my fear is, that we are already reaching a point where it will be challenging to reduce inflation without giving rise to recession."

It would be a good thing to raise the minimum wage and empower unions, but "this kind of policy, there are no examples of successful inflationary policy that has worked out to the benefit of workers," said Summers, claiming "dozens of examples" from the U.S., United Kingdom, and South America "where [the policy] backfired with respect to the very people it was trying to help."









read more at: https://www.newsmax.com/finance/streettalk/treasury-summers-fed-inflation/2021/12/24/id/1049875/







He’s right! Inflation is a clear and present danger to America and our economy. Biden policies are triggering inflation. We may be back in a recession in order to break it again.

 

Let’s go Brandon was at least stopped from getting BBB passed which would have made inflation even worse.

 

It only took Biden a few months to drive us into a recession, drive up inflation, create a border crisis that is out of control, empower Russia and China, play the race card every chance he gets, and tell us we’re all going to die this winter while those who survive the China virus will be assassinated by global warming if trillions of dollars aren’t spent by just this country and not others while then telling us the most lethal threat to this country is white people. Biden is a puppet of the left’s politburo.

 

Cracking me up dude... It's one or the other.... you can't have both at the same time... If there is a recession, there is DEflation....

I suggest you pick your favorite term to mislead your sheep with and stick to it...

Or, you can face the facts that the economy seems to like what Joe Biden is doing... so far...

 

It is astonishing that rightists simply do not know how economies work.

 

Hilarious a democrat would say this. See AOC, the queen of dems. And If you know how economies work, you will know that one can follow the other as some is believing is going to happen.

brandon has been terrible.

And one can follow the other, Steve wasn't wrong.

 

One can follow the other, the inconsistency you thought existed there doesn’t. Secondly there is nothing about either of those that is good, and certainly nothing that Brandon has done to remedy any of it.

 

How does BBB inflate prices worldwide?

 

Pelosi is the queen of the Dems, not AOC which only proves you have no idea of what rambling you are producing.

 

Biden's policies are doing nothing more or less than what Trump did to the economy to cause inflation.

 

AOC is most certainly the queen of dems, Pelosi is old and senile, someone that dems tolerate due to her position.

You have no idea what you are speaking on.

 

A queen wields power AOC has no power to wield compared to the power of Pelosi..

 

False, her power is in influence. And dems are easily influenced by nice, if even stupid, words.

 

Huh?

AOC is NOT "The Queen of The Dems"...
NOT Even Close...

Still, that sounds like a fun game...
I am gonna try...

Liz Cheney is the Queen of the GOP!

^How did I do?

Anyway, back to OP and Summers:

Given his former position, his opinions are always worthy of consideration.
BUT, Everybody KNOWS that Biden has very little control over the current state of the
USA economy.

Too many factors are utterly beyond Biden's control.
^And, Everybody (Except those who blame Joe for rain on parade day) Understands That...

 

AOC is most certainly the queen of dems.

You can create any 2 plus 2 equals 5 assumptions you want.

The reality is AOC is the queen of dems.

And the current levels of inflation, and the potential for a recession is most certainly brandons fault. The only people who dont acknowledge that is the vote blue no matter who crowd.

 

If we are going to go with "royal" sounding terms, perhaps we could call AOC a lady-in-waiting??

For somebody who just turned 32, she's done an awful lot to instill fear into the fearmongers, hasn't she?

Sad the new-ish GOP House female members cannot say the same...

 

I've not been able to follow this 'logic' either but then we are dealing with quite a few zealots, true and paid.

 

100% WRONG.
Give me a break.

The ONLY "2+2=5" Scenarios in this thread revolve around the unfathomably misguided assertion that AOC is "The Queen of the GOP".

In fact, not only is that entire assertion about AOC stupefyingly illogical--BUT, it isn't even worthy of dignifying with further comment.

Anyway, the topic of THIS thread is Summers' opinion on the direction of the economy.

Misguided fantasies about Rep. Ocasio-Cortez belong in a separate thread.
Most likely in the Humor or Conspiracy Sections.

So, IF one actually wants to discuss the OP Topic regarding Summers, one should please restrict comments to that subject.

If one wants to discuss AOC, they are in the Wrong Thread.

Anyway, back on-topic to Summers:

He does make some interesting points.
BUT, Summers' has been singing the same one-note song for over a year.
Here is a video from last December:

 

If there is a recession there is reduced demand. Deflation results from reducing the money supply, something federal government will never allow because it makes debt repayment more expensive

Actually the economy seems to like increased demand from the reduction of government mandates about covid. We have had a hot economy throughout the pandemic but demand was suppressed from people staying home.

The economy doesn't like the inflation that occurs at the moment and all of that was result of government actions, specifically paying people not to work using money that didn't exist. The economy is always headed toward recession or recovery. At the moment it is headed toward recession because of its variability. We have been in a good economy for several years. A recession is inevitable regardless of what Biden does or doesn't do.

 

I am 100 percent correct.

You can make up any 2 plus 2 equals 5 nonsense that you wish, but the objective reality is AOC is the queen of the dems.

If you dont wish to speak about it then dont, however I was responded to a leftist on this forum who was OFF TOPIC. If you have an issue with off topic replies then I humbly suggest you dont participate in them, or direct your issue at the leftists going off topic.

However, the only misguided opinion about AOC is that the completely inaccurate take that she isn't the queen of the dems. She most certainly is.

I suggest you take your own advice and restrict your future replies and keep them ON TOPIC, as to avoid being hypocritical and if you wish to be wrong about the reality AOC is the queen of the dems, then make your own thread.

Anyways, on the topic of Summers.

The reality of a recession seems more imminent and is something we should all be concerned about.

Brandon has done a terrible job so far, and is only getting worse. In every way. The suffering he has already caused could get alot worse if a recession does occur.

 

This is what makes Secretary Summers so valuable. He is a Leftist, a Progressive, a Liberal and a Democrat, BUT HE BOWS TO THE EVIDENCE.

And this is the way forward, as it always has been, but first we need to endure this passing kongaline of fools who managed to sieze passing power in a COVID tainted election.

​

 

That's because as every economist knows, "inflation" (snicker) does not cause recessions.

Reduced Demand --if it occurs during a recession -- is a symptom, not the cause.

That's true only if you want to exacerbate Demand-pull Inflation and make things worse.

What idiot would wanna do that?

He's wrong.

You're wrong.

Lay-people like you and economics with a political/social agenda confuse simple things.

When you're in your 3rd year as an economics major, you'll learn how to construct Supply Schedules and Demand Schedules, and then graph them.

Where they intersect on the graph is the equilibrium price.

Then you will be able to differentiate between shifts along the curve, and the whole friggin' curve shifting.

Prices have increased because the whole entire Demand Curve has shift, and the Supply Curve still stands or has also shifted in the opposite direction.

In case you just don't get it, you have Supply issues which are not Biden's fault.

Congress stopped foreclosures and evictions during STUPID-19, but not repossessions.

Yeah, that's right... a lot of owner-operators had their rigs repossessed, because they couldn't make the payments because idiotic Republican and Democrat governors shut down the economies in their States.

You have a shortage of truck-drivers, among things. Your ports are back-logged.

You're not in a recession, and it was you who cause Demand-pull Inflation, not Biden.

Is Biden trying to buy everything that is in short Supply? No, but you and everyone else are.

 

False, inflation can cause a recession when you try to combat the inflation. Thats the trick in fact, is to combat inflation without causing a recession.
Something brandon doesn't seem capable of doing.

 

You may be too young to remember it, but allow me to introduce you to the word, stagflation.

You're welcome.

 

Great word, but it doesn't seem to apply here since we don't have economic stagnation (or any long term inflation either)...

If you can get Larry to buy into that word, maybe I'll give it a look... though he seems amenable to any faux panic future situation he can think of...