June 13, 2022

Janet Yellen, dumber than a post

Inflation in May jumped again after a small fallback in April.  It's at an advertised rate of 8.6%.  I say advertised because they have made adjustments to how they calculate which have had a dampening effect on how bad it really is.  It's not so high because of the war in Ukraine since it predates that by a longshot.  Even if it was the gas prices due to the war in Ukraine, Let's Go Brandon could have mitigated that by not crippling the American oil and gas industry.  And it's not just the ridiculous Let's Go Brandon $1.9 trillion stimulus spend from last year, although that was a big factor.  It was mainly the ultra-loose monetary policy from the Fed  that has been on display frankly since 2008 (if not earlier) that has culminated in a massive bubble economy.  

Janet Yellen, Democrat, and head of the Federal Reserve from 2014 to 2018, didn't see it coming.  This is how you know she's an idiot.  She's supposed to understand economics.  But she didn't.  She's since apologized for her horrible misread.

In March 2021, when inflation hawks were arguing that the Biden administration’s $1.9 trillion stimulus plan was going to overheat the economy, Yellen called the risk of inflation “small” and “manageable,” and a couple of months later said, “I don’t anticipate that inflation is going to be a problem.” She wasn’t alone. For much of 2021, Federal Reserve Chair Jerome Powell said that he thought inflation would be “transitory,” and even as inflation rose above 6 percent, the Fed kept interest rates near zero. (Its first interest-rate hike was not until March 2022.)

Along the way, that thing Yellen thought was not going to be a problem became a huge one—not least, politically. Indeed, with today’s news that inflation in May was 8.6 percent (previously at 8.3 percent), it is arguably the biggest problem that the Biden administration faces—high prices are overshadowing pretty much everything else about the U.S. economy. 

I studied economics while in university back in the late 1980's when it was not all Leftist running the departments.  Since then economics has been an interest of mine, but I am by no means an elite expert on economics.  But I saw this coming.  I was telling my friends who had also studied economics and they didn't believe me.  But the fundamentals are the fundamentals. Profligate spending combined with incessant and insane money printing is a recipe for intense inflation.  It will get worse this year, not better.  Because, reality.

Janet Yellen saw through rose colored glasses because she wanted to see things that way.  But reality is more powerful than your wishes.  She's not qualified.  This was worse than a mistake it was an epic blunder by someone who was supposed to know better.  If I could see it coming, why couldn't she?

The article I quoted above, which goes on to excuse Yellen as well as the leftist economic agenda during the Obama administration, going so far as to take credit for America's economic resurgence under president Trump, completely misses the mark too.  Excusing someone so powerful who was so far wrong, is as much of a failure of their duty as was Janet Yellen's horrible, terrible abomination of an economic stewardship itself.  Instead of lauding her for coming clean, they should be excoriating her for her ineptitude.

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