Top Obama economist Larry Summers rolled over Joe Biden’s so-called transitory inflation. The producer price index surged to almost 10% and inflation is at 7% by the government’s lying numbers. David Stockman said it’s actually 15% if we went by the metrics we used in the 70s and 80s.
If you don’t think these price increases will pass on to us, you would be sorely mistaken.
Larry Summers said we are moving towards higher entrenched inflation.
“I think the data flow is saying what I’ve thought for quite some time that, yes, there are transitory elements in inflation, and very likely they will recede, but we are basically moving towards higher entrenched inflation. It’s there in expectations, it’s there in wages, it’s there in labor shortages, it’s there in the pervasive pattern across many different prices.”
Fixing an overheated economy like this one has not been cooled successfully in the past.
“And people try to excuse it by picking this figure and that figure from month to month, but we’ve got an overheated economy, and the Fed’s gonna have a very real challenge of cooling that economy off and doing it in a controlled way. That has not been done very successfully in the past. So it’s going to be a very challenging year for macroeconomic policy.”
Summers was asked if the WH claims that inflation is simply a result of “a supply-side problem. Summers replied:
“No, he’s wrong.”
“We have a massive, overheated labor market. We have the highest ratio of vacancies to unemployment in the country’s history, by a large margin. We have shortages of labor, in everything from psychotherapy, to McDonalds, in everything from investment analysts to gardeners, that suggests a surfeit of purchasing power and demand relative to the capacity of the economy to produce and unless we bring those things into balance, we’re going to have not just higher inflation, but possibly even accelerating inflation. And we need to recognize that we have an overheated economy that we are going to need to cool off.”
“Every time a Washington policymaker suggests that this is caused by corporate greed or some such, they are delaying the date at which we will achieve the credibility necessary to bring down inflation with stable employment.”
And we have an imbecile in the Oval Office. Thanks Dems.