Ex-Treasury Secretary Larry Summers warned that millions of currently employed Americans must lose their jobs in order for the Federal Reserve to succeed in its bid to cool inflation.
Larry Summers warns unemployment must rise to cool inflation
Related:
Larry Summers Says US Needs 5% Jobless Rate for Five Years to Ease Inflation
Maybe he can ship some more jobs overseas [/sarcasm]?! I’d suggest shipping him, overseas, but I wouldn’t even wish that on my enemy!
Last week, US Treasury Secretary Janet Yellen told the US Congress that “We now are entering a period of transition from one of historic recovery to one that can be marked by stable and steady growth. Making this shift is a central piece of the President’s plan to get inflation under control without sacrificing the economic gains we’ve made.”
It’s true that the US economy since the depths of the pandemic slump, (which remember in terms of national output, incomes and investment was the worst since the 1930s – even worse that the Great Recession of 2008-9) has made a recovery. But it could hardly be described as ‘historic’. And as for the claim that the US economy, the best performing of the major economies in the last year, is heading towards ‘stable and steady growth’, that is not supported by reality.
The scissors of slump
The U.S. empire’s social stability can no longer rely on buying off the workers within its own borders. When Che Guevara observed that international worker solidarity gets undermined by the proletarians in the core imperialist countries receiving special benefits compared to the proletarians in the exploited countries, he was right. But with the contraction of capital, and the consequential introduction of neoliberalism to keep capital afloat, this has changed. Every year, the masses within the United States face conditions that are more like the ones in the Global South. The global wealth gap is still the primary wealth gap in a macro sense, but this widening of the U.S. empire’s internal inequality represents a contradiction which can bring about the empire’s defeat from within. And therefore a major step towards eliminating the global gap.
By endangering the petrodollar, Ukraine conflict brings multipolar world & U.S. revolution far closer
The chairman of the US Federal Reserve, Jerome Powell, said his goal is “to get wages down.”
US Federal Reserve Says Its Goal Is ‘To Get Wages Down’
H/T: THE NEW DARK AGE
By Pam Martens and Russ Martens: April 27, 2022 ~
As long-term readers of Wall Street On Parade know well, we have regularly warned that the failure of Congress to meaningfully reform Wall Street by restoring the Glass-Steagall Act poses a national security threat to our nation in times of crisis.
Global Megabanks Are Tanking – The Same Ones the Fed Bailed Out in 2019
On April 19, the International Monetary Fund (IMF) released its annual World Economic Outlook, which forecasted a severe slowdown in global growth along with soaring prices.‘For 2022, inflation is projected at 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies – 1.8 and 2.8 percentage points higher than projected in … January’, the report noted. IMF Managing Director Kristalina Georgieva offered a sobering reflection on the data: ‘Inflation is reaching the highest levels seen in decades. Sharply higher prices for food and fertilizers put pressure on households worldwide – especially for the poorest. And we know that food crises can unleash social unrest’.
I Cannot Live on Tomorrow’s Bread
Related:
H/T: The New Dark Age
Nothing has revealed the class divide in the U.S. quite like runaway inflation and skyrocketing gas prices. But in addition to the economic impact the staggering incompetence of the Biden administration is having on the working class, there is a political one; it’s undeniably driving working class voters even further from the Democrats and toward the GOP.
America Is Headed for Class Warfare
Related:
“It’s just really hard to live”: Chicago workers describe impact of surging food and gas prices
By John W. Whitehead & Nisha Whitehead, April 11, 2022
This is financial tyranny.
The U.S. government—and that includes the current administration—is spending money it doesn’t have on programs it can’t afford, and “we the taxpayers” are the ones who must foot the bill for the government’s fiscal insanity.
‘We the People’ Are the New, Permanent Underclass in America
By Pepe Escobar
Russia says half its gold assets were frozen – is this for real or a slick play by Moscow?
Say Hello to Russian Gold and Chinese Petroyuan
Ms. Cat’s Chronicles 
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