Yellen wrong again. Recession is inevitable and may be here now.

The first quarter saw negative growth. If the second quarter shows negative growth, that’s a recession.

A couple of weeks ago, Secretary of the Treasury Janet Yellen admitted she was wrong last year when she said the inflation experienced back then was temporary or transitory. Recently she said that a recession was not inevitable. She is wrong again.

Yellen has made several incorrect forecasts about the economy. She admitted she was wrong when, early in 2021, she said inflation was “not a problem,” a “small risk,” and “manageable.”

She was also wrong when she said that large increases in the money supply will not lead to inflation. She said that classic monetary theory says that vast increases in the money supply are indeed inflationary. But she said we now have Modern Monetary Theory, which disagrees with the classic theory. She was proven wrong as inflation skyrocketed.

Then she tried to justify the large increases in government deficit spending that the Biden Administration wanted. Biden convinced Congress to pass his now obviously inflationary American Rescue Plan and the Infrastructure bill. That spending totaled nearly $3 trillion.

Since the economy was growing at a 6% rate, that huge increase in excess demand was obviously…