Summers: We’re ‘Facing Real Risks’ of ‘1970s-Type’ ‘Stagflation’

[mystery-ak]

Summers: We’re ‘Facing Real Risks’ of ‘1970s-Type’ ‘Stagflation’


https://www.youtube.com/watch?v=cCFeKcwNJWI&t=2315s&ab_channel=BloombergMarketsandFinance

Ian Hanchett 5 Mar 2022

On Friday’s broadcast of Bloomberg’s “Wall Street Week,” economist Larry Summers stated that “we’re now facing real risks of a 1970s-type scenario…the same kind of broad phenomenon of stagflation.” And that this is partially “a response to the excessive stimulation of the economy during 2021.”

Summers stated that monetary policy is effective at tamping down inflationary pressures, “but it may not be an effective tool without engineering a slowdown in the economy. The last dot plot has the Fed believing that three things are going to happen together: that inflation’s going to fall below three, unemployment’s going to stay well below four, and interest rates are never going to go above 2.5. I don’t think those things are all likely to happen together. And so, the Fed’s going to have to make some very difficult choices. I think that there’s much more danger that we’re going to do too little to contain inflation than there is danger that we’re going to do too much.”

He continued, “I think we’re now facing real risks of a 1970s-type scenario, not quite as high levels of inflation as we saw in the 1970s, but the same kind of broad phenomenon of stagflation. And that is, in part, a response to the very bad break we’ve gotten from the geopolitics and what’s happening with oil and commodities. But it’s also a response to the excessive stimulation of the economy during 2021.”

https://www.breitbart.com/clips/2022/03/05/summers-were-facing-real-risks-of-1970s-type-stagflation/

[Hoodat]

On Friday’s broadcast of Bloomberg’s “Wall Street Week,” economist Larry Summers stated that “we’re now facing real risks of a 1970s-type scenario…the same kind of broad phenomenon of stagflation.” And that this is partially “a response to the excessive stimulation of the economy during 2021.”

It is also a response to the excessive increase in oil prices brought on by the same people by purposely decreasing  supply.  Our worst enemies couldn't have done a better job at destroying the American standard of living.

[libertybele]

It is also a response to the excessive increase in oil prices brought on by the same people by purposely decreasing  supply.  Our worst enemies couldn't have done a better job at destroying the American standard of living.

I am so praying for a turn of events that will head this country in a more positive direction.  The Joe & Chuckles show needs to abruptly come to an end.

[Hoodat]

Recession and high unemployment are the only things that are going to cure inflation.  Recession is also what we are going to get with oil prices where they are.  There is usually a six-month lag between employment and oil price.  By the end of summer, things will not be looking good.

[Kamaji]

Well, duh!

[LMAO]

If I won the presidency, and had to find a energy secretary, I would appoint someone familiar with the energy sector.

Jennifer Granholm , and her hostility towards energy, would never even be considered unless I wanted to cause economic harm to America

[Hoodat]

Jennifer Granholm , and her hostility towards energy, would never even be considered unless I wanted to cause economic harm to America

But if you did want to cause economic harm to America, she would be the ideal choice.

[Wingnut]

It was a lot easer being  the 70's when Carter was in office. 

[libertybele]

It was a lot easer being  the 70's when Carter was in office.

   IMO he didn't intentionally do things to destroy our Republic and way of life.

[libertybele]

Recession and high unemployment are the only things that are going to cure inflation.  Recession is also what we are going to get with oil prices where they are.  There is usually a six-month lag between employment and oil price.  By the end of summer, things will not be looking good.

Right around the mid term elections -- perhaps the DEMS may do something??? I don't see how people with families are going to put food on their tables.  Even with both parents working, the cost of gas is already ridiculous (I predict $6.00 - $7.00 gal) and the cost of food is already astronomical and predicted to continue to rise. Supermarket shelves are still bare. Factor in high rent as well.  For those who bought a home with low interest rates they might do ok housing wise provided that they will still have a job.

[Hoodat]

But now, Big Brother will be able to blame it all on Eurasia.

[dfwgator]

But now, Big Brother will be able to blame it all on Eurasia.

And anyone suggesting it's Brandon's fault will be labelled a 'Traitor' giving 'aid and comfort to Putin.'

I could see all this happening from a mile away.

[Cyber Liberty]

No chit, Cherlock.

[IsailedawayfromFR]

It won't take too many weeks for the effects of high fuel prices to hit everything's price tags, from food to consumer goods.

Brace yourselves for shock and prepare.

[IsailedawayfromFR]

 

If I won the presidency, and had to find a energy secretary, I would appoint someone familiar with the energy sector.

Jennifer Granholm , and her hostility towards energy, would never even be considered unless I wanted to cause economic harm to America