Summers says U.S. risks recession by blaming inflation on greed

Bloomberg/Chris Anstey/1-14-2022

“Misdiagnosis of the problem around greed or around particular sectors raises the risk that ultimate recession will be necessary. We need to recognize that we’ve got an overheated economy that we are going to need to cool off.” – Larry Summers, former secretary of the Treasury

USAGOLD note: Throughout the 1970s, we recall, the federal government blamed inflation on everyone but itself: businesses, oil exporters, even farmers. The 1970s Nixon administration went so far as to introduce price controls – a policy that only made things worse and had to be abandoned. The real source of inflation now is the same as it has always been – running large federal deficits and financing them with printing press money. The White House, from our perspective, is doing its best to ignore the continuing pleas of the former Treasury Secretary. Summers says we are moving toward “higher entrenched inflation.”