UPDATED 5:20 PM PT – Monday, July 12, 2021
A rising number of economist have warned Joe Biden’s policies could turn the U.S. into a Latin American type of economy. On Monday, Former International Monetary Fund Deputy Director Desmond Lachman said Biden’s inflation, money printing and high government spending posed a problem for the U.S. economy.
Lachman said Biden’s policies could push the U.S. budget deficit up to 15 percent per year. He warned this was not a sustainable level of deficit spending, which may bankrupt the U.S.
Biden’s plan for economic recovery:
-overspend by trillions,
-pay people to stay home and not work.
And we are stuck paying the price for his irresponsibility.
— Congressman Greg Steube (@RepGregSteube) July 12, 2021
Lachman went on to point out such policies lead to devaluation of the national currency and fuel poverty, as seen in many Latin American countries.
“What we’ve already got in the pipeline is going to cause inflation,” he asserted. “Now if you can add infrastructure plan and the families plan, and it’s not going to be properly financed with real taxes that restrain spending, then you’re just going to be adding to the inflationary pressures.”
.@DonaldJTrumpJr on Biden’s economy: “You will save an accumulative 16 cents on your barbecue. […] That’s great as long as you don’t have to drive to the end of your driveway, in which case the extra dollar per gallon of fuel will eat up that 16 cents.” pic.twitter.com/pZWydY8OQi
— Donald Trump Jr. (@DonaldJTrumpJr) July 5, 2021
Lachman added the federal reserve would have to raise interest rates and halt money printing to curb inflation. However, he said this wouldn’t help solve budget problems.
“What I think has gone wrong in this country is that there’s no real constituency for anything vaguely approaching a responsible budget policy,” he expressed. “This is how we see that budget deficit keeps rising and the debt keeps rising.”
Lachman went on to warn Biden’s policies will eventually result in bubbles bursting in the housing and stock markets, which could bring on a new recession in the nation.