Corporate banksters are beginning to sound like hard-money Austrians as they are forced to admit the crippling inflation that is to come.
Former Treasury Secretary and Harvard President Larry Summers wrote an op/ed in the Washington Post sounding the alarm about what is on the way due to the Federal Reserve’s historically loose monetary policy.
“The consumer price index rose at a 7.5 percent annual rate in the first quarter, and inflation expectations jumped at the fastest rate since inflation indexed bonds were introduced a generation ago. Already, consumer prices have risen almost as much as the Fed predicted for the whole year,” Summers wrote in the article.
“Fed and Biden administration officials are entirely correct in pointing out that some of that inflation, such as last month’s run-up in used-car prices, is transitory. But not everything we are seeing is likely to be temporary. A variety of factors suggests that inflation may yet accelerate,” he added.
Summers recommends more government central planning to solve the problem of rising inflation, but his admission that inflation is a major problem is a sign that the corporate elite may be starting to worry that the Fed is losing control of the economy.
CNBC hosts admitted the dangers of inflation earlier this month:
— Squawk Box (@SquawkCNBC) May 11, 2021
Liberty Conservative News has reported on prices rising for consumers who have already been crippled by COVID-19 lockdowns:
“According to a report by Thomas Catenacci of the Daily Caller, the consumer price index (CPI) has witnessed a 4.2% increase during the last 12 months. This is the steepest rise in the CPI since 2008, per a report by the Department of Labor.
Between March and April, the CPI increased 0.8%, per a Labor Department report released on May 12, 2021. The Wall Street Journal reported that economists estimated that the CPI grew by 0.2% in April and 3.6% during the 12-month period that ended in April.
“I think a lot of us are expecting a pretty significant increase of spending on services in the next couple months and that’s where a lot of the pressure on CPI is going to come from,” Richard Moody, chief economist at Regions Financial Corp, said to the WSJ.
… In a recent jobs report, the US economy only added a meager 266,000 jobs in the previous month, after economists boldly predicted that it would be a million. Organizations like the Chamber of Commerce blamed the dismal jobs report on the continued unemployment benefits in the $1.9 trillion American Rescue Plan.
Despite these uncomfortable economic truths, Democrats insist on putting forward new spending proposals and other welfare programs to get Americans hooked on government largesse.”
America may be going down the road toward hyperinflation or a deflationary spiral, the sort of dire outcomes that have been predicted by economists like Peter Schiff. People would be wise to protect their assets while they still can.