Larry Summers: Trump’s economic growth is 'unsustainable'

Yahoo Fake Finance "News" ^ | 5/1/18, The Communist Holiday | R Newman

[SoFloFreeper]

The US economy could grow at or above President Trump’s goal of 3% this year. And White House economists predict it’ll be that way indefinitely.

Former Treasury Secretary Larry Summers sees it differently.

“Yes, we are growing at a reasonably rapid rate, but it’s taking unsustainable fiscal deficits to drive us to that point,” Summers told Yahoo Finance at the Milken Institute Global Conference in Los Angeles. “It’s taking unsustainable increases in credit to drive us to that point. It’s taking unsustainable increases in asset prices. You can always generate a sugar high. The real problem for us is not achieving growth, but achieving sustained, healthy growth with a financial environment that’s sustainable.”

In 2013, Summers laid out a “secular stagnation” hypothesis, arguing that economic growth would remain chronically low for a variety of factors. For the second term of the Barack Obama’s presidency, that seemed to be true—annual growth rates averaged just 2.2%, well below historical norms for a recovery period.

[Theodore R.]

Should read: Summers hopes it’s unsustainable.

[Amendment10]

And don’t forget that Trump is unelectable. /sarc

[Still Thinking]

Oh yeah, I agree. I was just pointing out the author’s hypocrisy.

[armourenthusiast]

"So after $20 TRILLION in deficits, deficits are bad? How transparent they are! You're referring to the national debt, not the deficit. They're not the same."

I predict that President Trump will run out of world crisis' to solve in his first term. In his second term, he will get our "financial house" in order.

Hey, if you don't believe me, ask Scott Adams.

[hal ogen]

summers was a big supporter of the traitor nobama’s economic idiocy. Who cares what this nitwit has to say about anything?

[central_va]

Put the Tariffs in place. We’ll see economic growth and reduce debt.

Win-win!

[Vendome]

Yes, we are growing at a reasonably rapid rate, but it’s taking unsustainable fiscal deficits to drive us to that point,” Summers told Yahoo Finance....

NO commentary during the Obama years and his creation of a $1 Trillion Dollar Baseline in the budget that will never go away?

[Vendome]

Summers: Economic Growth More Important Than Deficit....
https://www.npr.org/2013/10/29/241548516/summers-economic-growth-more-important-than-deficit

and again with Fahreed Zakaria
Summers: Growth first, deficit next

3 minutes

https://www.youtube.com/watch?v=167WesZUSfQ

[FrankR]

After eight years of the Obama fiasco, we’re not even back to level ground yet on the economy.

Summers is just a “noTrumper”.

[Garth Tater]

“It’s taking unsustainable increases in credit to drive us to that point."

It's all part of the plan. Each Federal Reserve note issued is a debt owed. When that note is paid back it has to be paid back with interest. That interest payment is removed from the economy and given to the holder of the note - and that leaves less  money  currency circulating in the economy.

So, pretty much by design, an ever increasing amount of  currency  debt issuance is required just to stay even.

And the fun part is that because the interest attached to the debt is paid back in more debt the two are exponentially related - and as long as that attached interest is a positive value the interest payments (not the interest rate) will necessarily grow exponentially.

Larry knows all this. He is just a mouthpiece for the lies we're being told by the money lenders and our own govt.

[Dogfaced Soldier]

Why would anyone listen to him? He is the one who predicted that the US economy would fall into a major recession within 18 months of Trump’s election. He’d be exhibit A in the proof of Buckley’s comment that he’d rather be governed by the first 2000 people in the Boston phone book than by the faculty of Harvard that Summers once presided over.

[Still Thinking]

He’s every bit as sharp as that other tool, Robert “Third” Reich.

[Sam Gamgee]

He mixes in half truths. True, any socialist economy (Europe, Canada) is going to have a hell of a time producing above 2% GDP growth in years to come. The size of government, the existence of corporate welfare, and demographic collapse in population are going to pull hard on any growth.

America is not that though (not yet). It is a vibrant, competitive economy with high productivity. So it can do so - and with the corporate tax cuts - should be a no brainer.

[NELSON111]

Agreed...and I hate to say it...but I agree with Summers....but not for the reasons he thinks. It’s not sustainable BECAUSE of debt. A lot of FReepers are gonna be real surprised that the economy isn’t going to grow as promised. I’m not surprised it isn’t growing at all. Once the last of the Chinese money is done rippling through the economy...you’ll see the last of good growth. Quantitative tightening is probably going to turn back into QE (pick the name) by next year.

[NELSON111]

Agreed...and I hate to say it...but I agree with Summers....but not for the reasons he thinks. It’s not sustainable BECAUSE of debt. A lot of FReepers are gonna be real surprised that the economy isn’t going to grow as promised. I’m not surprised it isn’t growing at all. Once the last of the Chinese money is done rippling through the economy...you’ll see the last of good growth. Quantitative tightening is probably going to turn back into QE (pick the name) by next year.

[Uncle Miltie]

Let's check Larry's track record:

"The economy under Trump: Plan for the worst"

By Lawrence Summers January 16, 2017

https://www.washingtonpost.com/opinions/the-economy-under-trump-plan-for-the-worst/2017/01/16/0e7287c2-dbf8-11e6-ad42-f3375f271c9c_story.html?noredirect=on&utm_term=.59e8738031af

Gosh, Larry, hope you don't mind if I ignore your ignorance.

[dp0622]

Definitely hypocrisy.

I read a liberal defending the deficit under obummer by saying we have maybe 150 trillion dollars worth of oil on federal land.

Would the US ever sell oil, would it even be legal for the govt to sell oil in the open market?

I don’t know.

[trebb]

Poor Obama-lover Larry was on board with pathetic growth being the “new norm” and hates what Trump has managed - it shows he’s more charlatan than economist....