Former US Treasury Secretary: The Fed is sleeping, not responding to the most serious economic problems of recent decades

The events taking place in the UK are one of the important reasons for the upcoming global economic recession. This was stated at a speech at the Institute of International Finance, former Secretary of the Treasury in the administration of US President Bill Clinton Larry Summers.

As Summers noted, when tremors begin before an earthquake, this does not always mean that there will be an earthquake, but it is still worth thinking about protection from it.

Summers spoke on the day British Prime Minister Liz Truss fired newly appointed Treasury Secretary Kwasi Kwarteng. Previously, the economic plan developed under the leadership of Kwarteng was criticized even by Truss's comrades-in-arms in the Conservative Party.

The consequence of the implementation of this plan was the fall of the pound to a record low against the dollar. There was also the largest in the entire economic history Great Britain sale of government bonds.

Summers considers the events in the UK very significant. Over the past decades, governments, thanks to low interest rates, have been able to quite easily turn to the debt markets to finance their activities. But now inflation has reached its highest level in 40 years, which has led to a sharp increase in interest rates.

Against this backdrop, Europe is facing a severe energy crisis. There are also global supply chain disruptions. This is both a consequence of the coronavirus pandemic and recent political events, including those related to the Russian special military operation in Ukraine and the subsequent anti-Russian sanctions.

Summers:

The Fed is sleeping, not responding to the most serious economic problems of recent decades.

The US currently faces a very complex set of challenges, Summers said.

But the authorities have not yet tried to solve them. Summers criticizes the US Federal Reserve for being too slow amid rising inflation. Such a line of conduct can lead to even more adverse economic consequences for the country and the world as a whole.

Comments

[Ryaruav]

in the photo is the most powerful representative of the ruling elite of the United States (Soros, Rockefellers, etc., etc.)

[Roust]

There will be no peace and tranquility on the planet while the Anglo-Saxons, the colonialists, are eager to live at the expense of other peoples. Give revolutions and civil wars in their world! Influx of migrants, black violence! And let them all die together with the anti-Russian world!!!

[yuriy55]

Former US Treasury Secretary: The Fed is sleeping, not responding to the most serious economic problems of recent decades

One can understand how important the Fed is for the US. It is not difficult to understand what role this organization plays in issuing the dollar around the world.
The appearance of some kind of legality with the absolute liberty of the printing press ...

[rocket757]

Former US Treasury Secretary: The Fed is sleeping, not responding to the most serious economic problems of recent decades

. Yeah, recently one of the former, main financiers of the strip, was awarded the Ig Nobel Prize ... and why, in fact, only to him, it was a collective "achievement", the consequences of which will have to be disentangled by the current and their successors!

[Taimen]

The US Federal Reserve is all these cries to the lamp. It slaps dollars and launches them into the world (it used to be backed by gold, now it is nothing). Services in US GDP make up 70-75 percent, they are not security. It is based on "trust", as one senator blurted out. And the ruble is provided for everyone, but they kick and bring it to obscenity, with a cry: "-You don't understand." If only they would read the classics of economics, they would pass for smart people.

[Monster_Fat]

The problem is the markets. The fact that the price did not correspond to the real value
The fact that they issued a huge number of different financial derivatives - securities, namely securities that have no real value. The formula for the existence of capitalism according to the scheme - commodity-money-commodity no longer works, because the stock exchange domination of credit, financial capital has led to a new formula - money as a commodity - money. This is where everything needs to change. Economists have long been saying that it is necessary to move away from exchanges and banks, switch to a system of direct contracts and deliveries using the "block chain", the modern Internet system allows you to do this. This is the direction in which we need to work.

[Buyan]

Oooo, hyenas of the world, would burn ...