That was fast! Economists are already screaming inflation was “never licked” and the national debt is an existential threat.

Photo above - What is Treasury Secretary Lawrence Summers whispering to President Clinton? And why is Clinton cracking up? Probably nothing to do with the national debt and housing costs which are driving our nation to ruin.

The election has been over for what? ONE WEEK? Some states aren't even done counting the votes for the House of Representatives/ And the Kamala Harris campaign team is trying to scrounge up the cash for a recount of the presidential votes. And now THIS: Lawrence Summers (Clinton’s secretary of the Treasury) and Jerome Powell (Fed chairman during the entire Biden administration) are screeching that we’re all gonna die (economically). See links below.

If memory serves me right, Powell declared inflation licked last summer. And cut the Fed funds rate twice. Given that the Fed Funds increases had zero impact on essentials like housing, electricity, gasoline, and farm produce, lots of people wanted Powell to undo the rate hikes. Now Powell is screaming that the National debt ($35 Trillion) is a YUGE problem. Powell’s exact words yesterday: “Our debt not unsustainable. This path is unsustainable . We see that.. ... It's ultimately a threat to the economy.” (see link below).

NOW he tells us. Why the hell didn’t Powell speak up during the Kamala Harris presidential campaign? Was he afraid that she’d fire him after taking the oath of office? But on the morning after the election Powell thumped his chest and defied President-Elect Trump to fire him. If this sort of Fed whipsawing on the economy around election results isn’t political interference, then nothing is. Can senate hearings help sort this out?

Wait, it gets worse. Remember Lawrence Summers? Okay, nobody does. He was Bill Clintons Secretary of the Treasury, and President Harvard University, and he has a PhD in Economics. “Larry” (as he prefers to be called) endorsed Kamala Harris for president. Several times, because he didn’t think people were paying enough attention to him. That was then . . . this is now. NOW Larry Summers says inflation was never really licked. But he managed to keep this opinion to himself while shilling for Kamala. Maybe Summers had a belated attack of conscience after seeing all the homeless people living in tents? Anyway, it’s clear that Biden and Kamala will get off Scott-free for any of the continuing bad stuff that happens during the last 2 months of this administration. As if the last 4 years never happened.

I’m just sayin’ . . .

Hold Up. Fed Chair Powell Just Issued a Dour Warning on the Economy. Is the Bull Market in Trouble?

Larry Summers sounds the alarm bell on inflation — before Trump even takes office

ElwoodBlues · M

Memory doesn't seem to be serving you. Here's what Powell actually said.

“The 4-1/2 percentage point decline in inflation from its peak two years ago,” he noted, “has occurred in a context of low unemployment — a welcome and historically unusual result.”

What Powell was actually emphasizing was that inflation had been reduced without significant rises in unemployment — a so-called soft landing. That's historically rare.

Two years ago, economists feared that the Fed’s ongoing rate hikes — it ultimately raised its benchmark rate more than 5 percentage points to a 23-year high in the fastest pace in four decades — would hammer the economy and cause millions of job losses. After all, that’s what happened when the Fed under Chair Paul Volcker sent its benchmark rate to nearly 20% in the early 1980s, ultimately throttling a brutal inflationary spell.

In fact, at Jackson Hole two years ago, Powell himself warned that using high interest rates to defeat the inflation spike “would bring some pain.”

Yet now, according to the Fed’s preferred measure, inflation is 2.5%, not far above its 2% target. And while a weaker pace of hiring has caused some concerns, the unemployment rate is at a still-low 4.3%, and the economy expanded at a solid 3% annual rate last quarter.

While no Fed official will outright declare victory, some take satisfaction in defying the predictions of doom and gloom.

trollslayer · 46-50, M

You conspiracy nuts make me laugh. Maybe the chemicals they spray from planes do that to you.

Vin53 · M

Until any country in the world obtains the ability to come here and collect a debt I don't worry a millisecond about it.