Obama adviser and former Treasury secretary, says Republicans’ downplaying of the January 6th riot is contributing to rising prices
Economist Larry Summers, an advisor to two Democrat presidents and treasury secretary under Bill Clinton, has found a new culprit behind America’s inflation crisis: Republicans who downplay the severity of the January 2021 US Capitol riot.
“I think the banana Republicans who are saying that what happened on January 6 was nothing or OK are undermining the basic credibility of our country’s institutions,”Summers stated this on Sunday during a CNN interview. “And that, in turn, feeds through for inflation. Because if you can’t trust the country’s government, why should you trust its money?”
Democrats have promoted the riot to be racially motivated “insurrection”They have accused former President Donald Trump of inciting protestors to attempt to stop peaceful power transfer. With the assistance of James Goldston, an ex-executive at ABC News, the Democrat-controlled Congress started broadcasting hearings on the riot.
Summers was the director of the National Economic Council during the administration of Barack Obama. He called for more civility at Washington in order to restore confidence in the government. “I think it’s terribly important that we take the temperature down in Washington, that we recognize behavior that’s just out-of-bounds of reasonable and decency,”He said.
However, back in 2017 Summers himself fueled distrust in American government when he speculated that Russia ‘hacked’ the 2016 presidential election and may have colluded with the Trump campaign. Summers has served as the chief economist of the World Bank, and was president at Harvard University.
American inflation rose to 8.6% in May for the first time since 1980, which President Joe Biden attributed to his Russian counterpart Vladimir Putin. “We’ve never seen anything like Putin’s tax on food and gas,”He said this after Friday’s inflation report. He suggested then that the problem was caused by energy companies. “more money than God”While Americans are at the pump,
Last year, Summers accurately predicted severe inflation. He said he disagreed with last week’s statement by Treasury Secretary Janet Yellen that there’s nothing to indicate that a recession is in the works.
“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,” Summers said. He said, “I think the optimists were wrong a year ago in saying we’d have no inflation, and I think they’re wrong now if anyone’s highly confident that we’re going to avoid recession.”
Summers called on the US to reduce its deficit and cut prescription drug prices in order to ease inflation. He called on the US to eliminate many Chinese tariffs.
Some economists argue that the US is in recession.
“We’re in technical recession but just don’t realize it,”In a Friday note, Michael Hartnett, chief investment strategist at Bank of America wrote that the decision was made in consultation with clients. Hartnett also stated that the “inflation shock”It will be there for the foreseeable future, and it is not surprising that higher interest rates could cause economic disruptions.
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