NEWT GINGRICH: Every place from going to the gas station to going to the grocery store, watter, Terloops, by September will be a bigger story than gasoline. Food prices are going to go up all summer on a worldwide basis. They’re going to be genuine crises. And hundreds of millions of people are going to be at risk in places like India, the Middle East, sub-Saharan Africa. I think people have no idea how bad the food situation is going to get by the summer and how expensive it’s going to be by September. But in addition, if you’ve worked hard and saved all your life, I talked to somebody today who knows a great deal about the economy, who had just looked at his 401k and realized how much of a hammering they’d taken in the last few days. So if you’re a retired person relying on a decent stock market, you’ve got a problem if you are dealing with the challenge of gasoline or jobs.
Because I think that what you and Larry Kudlow talked about is exactly right. The longer they wait on inflation, the deeper the recession is going to be. We lived through this with Jimmy Carter. It ended up being called stagflation and people ate it up. The unemployment rate and the inflation rate and turn it into the misery index by adding the two numbers together, we have a grave danger of being worse off in another year or a year-and-a-half than we were under Jimmy Carter.
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