Posted: Jun 16, 2022 12:01 AM
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This week, the stock market took a turn into bear territory on the heels of yet another brutal monthly inflation report. With the Federal Reserve considering larger rate hikes in order to tamp down record inflation, the possibility of a near-term recession now looms quite large, despite the feeble protestations of Treasury Secretary Janet Yellen. As former Clinton Treasury Secretary Larry Summers — the man who predicted President Joe Biden’s inflation — stated, “I think 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.”
All of this was perfectly predictable. Firehosing money into an already-hot economy was a recipe for inflation — and yet that was precisely the policy pursued by the Federal Reserve and the Biden White House. According to The Wall Street Journal, the Biden White House and the Fed thought that the post-COVID-19 period would follow the 2007-2009