Joe Biden’s Presidency has turned into a trainwreck.
Even Democrats are starting to bail on him.
And Joe Biden turned as pale as a ghost after a top Obama official made this devastating prediction.
Good economic news reports are few and far between for President Joe Biden these days.
The recent jobs report came in with an unexpectedly strong number of 528,000 jobs added in the second quarter of 2022, which was more than double “expert” predictions.
Trying to cling to any good news on the economy they can get their hands on, the Biden regime took a victory lap, gleefully proclaiming that number was a sign of economic strength.
In fact, throughout America’s economic downturn under the current administration, President Biden has consistently touted the low unemployment rate as a sign all is well with the American economy.
But one top Democrat economist was quick to pour cold water on the idea that the latest jobs report was anything resembling “good news.”
According to Larry Summers, who served as Treasury Secretary under former President Bill Clinton and as a top economic advisor under then-President Barack Obama’s administration, told CNN that the jobs report made him even “more worried” about inflation.
June’s Consumer Price Index – the economic metric that determines inflation – showed that prices for consumer goods rose by 9.1%, the highest month-over-month increase in 41 years.
“Look, it’s always welcome news when people are getting jobs,” Summers said, before explaining that despite the strong jobs number, the rampant inflation crippling the country isn’t going away.
“I’m more worried about inflation tonight than I was last night,” Summers said of the jobs report’s release. “And I think it’s misleading not to see things that way.”
Right on cue, CNN anchor Wolf Blitzer then cut in to try to spin the jobs number back in the Left’s favor, claiming it was a sign the economy is strong.
But Larry Summers wasn’t budging.
“It’s welcome news when wages are going up,” Summers reiterated. “But I have to say, I don’t think it’s quite as rosy as your report suggested. The principal problem of the economy for some time has been inflation.”
While Democrats have touted the growth in wages under President Joe Biden, the inflation he created has wiped those relatively tiny increases away and cut even further into American’s disposable income.
“Yes, wages did go up half a percent last month,” Summers continued to explain. “But that’s about a 6% annual rate, and inflation has run at about 9% over the last year. I think our core problem – which is that we have an unsustainably overheated economy that’s leading to high inflation, which is cutting people’s paychecks – that, unfortunately, has not been addressed by the news in this report.”
The former Treasury Secretary went on to explain that the Federal Reserve’s path to the “soft landing” they’ve been claiming is their aim, just got closer to being Mission Impossible with this jobs report.
For the Federal Reserve, a “soft landing” involves their central bankers raising interest rates enough to bring down inflation without plunging the economy into a devastating recession.
Summers predicted that the unemployment rate would have to more than double to bring down inflation and sink consumer demand in the economy.
But to do that the economy would have to go into a major recession to crush the job market, which is why Larry Summers concluded by standing by his prediction that the economy had a “75% chance” of being in a severe recession next year.
A collapsing job market and a severe recession would leave President Joe Biden as the weakest Democrat incumbent heading into re-election since then-Democrat President Jimmy Carter in 1980.
Stay tuned to Conservative Underground News for any updates to this ongoing story.