As America struggles with the many-headed hydra of Biden’s failures, namely inflation, rising gas prices, disaster abroad, a flood of humanity rolling across the southern border, and a stock market crash, are things set to become even worse?
According to Clinton-era Treasury Secretary Lawrence Summers, the answer is “yes”. In fact, according to him, America could soon face a major recession.
He said as much when speaking to CNN’s “State of the Union” host Dana Bash, as you can watch here:
"It's more likely than not we'll have a recession within the next two years."
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
— CNN (@CNN) June 12, 2022
As you can hear in the video, Summers, 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.
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“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, saying:
“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 works.“
Watch her here:
Given that Yellen has been wrong on near every major economic issue recently, particularly inflation, it’s hard to take her seriously or trust her opinion over that of Summers.
Another bureaucrat who has been wrong on nearly everything, Jerome Powell, Federal Reserve Chairman, also claimed that no recession is on the horizon, saying that there is a “good chance to restore price stability without a recession, without a severe downturn, without materially higher unemployment.”
Summers also spoke about tariffs during the conversation with Bash, saying:
“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 vis-a-vis 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 crashing. That hardly seems a recipe for success.
Summers did, however, take the opportunity to attack Republicans too during his CNN appearance, saying:
“I think the banana Republicans who are saying that what happened on January 6th was nothing or OK, are undermining the basic credibility of our country’s institutions, and that in turn feeds 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.