Alarm grows that US is heading from inflation to recession
From Elon Musk to Goldman Sachs, there are warnings about a reduction in activity, after soaring in prices
Late last week, Newsweek, Vox and others warned that Biden’s attempt to sell American inflation as “Putin’s price hike” was not working in polls.
The American president, on his social media profiles, offered an alternative villain: “Do you want to lower inflation? let’s make sure that the richest corporations pay your share”.
It was too much for Jeff Bezosowner of Amazon and the Washington Post, who scoffed that the Biden administration would need to trigger its newly created — and criticized — Council on Disinformation to revise the message.
Bezos: “It is valid to discuss corporate taxes. It is essential to discuss how to tame inflation. Mixing them is just to deflect.” remembered the stimulus of the government as the cause of the soaring prices.
At a conference reported by Bloomberg, Tesla’s Elon Musk agreed: “The honest reason for inflation is that the government has printed a zillion more money.” In effect, he projects “recession”.
“It’s probably going to be tough for, I don’t know, a year, maybe 18 months,” Musk said, adding that “this administration doesn’t seem to do much,” hinting at voting for a Republican in the next election.
It echoed a CBS interview with Goldman Sachs senior chairman Lloyd Blankfein, in which the banker pointed to “very, very high” risk of recession in the US economy. “We are definitely going [para ela].”
He, too, blamed “too much stimulus” on inflation that is paving the way for recession.
MONEY ONLY IN THE PENTAGON
The US editor at the Financial Times, Edward Luce, wrote of the “strong imbalance” in US foreign policy towards Asia, which is focused on military spending and agreements against China, but without “serious economic initiatives”.
That’s how, “at the summit with Southeast Asian leaders, Biden announced a modest fund of $150 million, equivalent to a few days of Chinese investment in the Belt and Road Initiative — or two hours of Pentagon spending.”