An alien life form claims an encounter with Janet Yellen…
One might think that inflation is similar to an invasion from outer space.
He surprised us all: on earth, no one has anything to do with it.
But still, Janet Yellen was chair of the Council of Economic Advisers [NDLR : groupe de trois éminents économistes qui conseille le président des Etats-Unis]…Chairman of a regional Federal Reserve, then Vice-Chairwoman of the Fed, and then Chairwoman of the Fed… and, now, she is the Secretary of the US Treasury.
More than any man, he should be held responsible for the inflationary policies followed in the last 25 years. He was there in the room, presiding as the Fed injected liquidity and credit.
And now he has announced that he hates aliens!
According to Fox News:
“Janet Yellen warns ‘high US inflation is unacceptably high’, after June data shock.
“High levels of inflation are unacceptable, and that is clear from the figures released on Wednesday,” Yellen told a press conference in Bali ahead of the G20 finance ministers’ meeting. ‘And I think it’s appropriate that our first … that our first priority should be to reduce inflation.’
His comments came just a day after the Labor Department announced that the consumer price index — an overall measure of the price of all goods, including gasoline, food and rent — rose 9.1% in June from a year earlier. Prices rose 1.3% for the month since May.
Those numbers were both much higher than the 8.8% and 1% monthly growth that economists at Refinitiv had forecast, indicating how much inflationary pressures still remain in the economy. »
What solutions does he offer? Price control!
He also hinted that the Biden team is working on a cap on Russian oil prices to ‘avoid possible future oil price increases’. »
But why didn’t we think of that? Don’t want the price to go up? Hence “their cap”. Of course…and why not? And maybe he can get advice from Argentina and Venezuela on how these caps work.
How to destroy a country
During this period, don’t expect inflation to come down too low.
Fox News tells us that more price hikes are on the horizon:
“Producer inflation rose 11.3% in June, accelerating more than expected. »
Once inflation starts, it is difficult to control. This proves to us once again that you cannot boost, force or bend the economy without causing collateral damage. And, in American principles, we recognize collateral damage on all sides as well as direct attack.
Hemingway wrote that the two best ways to destroy a country are war and inflation.
Regarding the first, Jeffrey Sachs offers this summary:
“The war in Ukraine is the culmination of a thirty-year project carried out by the American neoconservative movement. The Biden administration is filled with the same neoconservatives who supported America’s wars of choice in Serbia (1999), Afghanistan (2001), Iraq (2003), Syria (2011), Libya (2011), and who did much to provoke the invasion by Russia. of Ukraine.
The neoconservative track record is an absolute disaster, and yet Biden has stuffed his team with neocons. As a result, Biden is leading Ukraine, the United States and the European Union into yet another geopolitical disaster. »
A series of stupid battles. And $10,000 to $15,000 billion is thrown out the window. “Its armed hand deep state – Warmers on the banks of the Potomac – grew rich. All others are destitute.
And it’s the same with “financial” principles. There, we will undertake to summarize them ourselves:
$8 trillion in fresh issuance since 1999.
A fall in interest rates below zero and their maintenance at this level for almost 10 years.
Shutting down a productive economy to protect against a virus that threatened most retirees.
Handing out billions of dollars in the form of stimulus packages, debt that was not mandated to be repaid, and unemployment benefits higher than wages…
Reduction in investment dedicated to essential energy projects…
The imposition of sanctions on a major wheat and oil producer…
A spade or two
Like the politics of war, these programs transfer real money from those who earned it to those who received it. And it left everyone else destitute. GDP growth rate has decreased. The price has increased. A common citizen has to work more hours to maintain his standard of living.
In 1999, an average home sold for $131,000. Today, it costs $428,000. The average hourly wage in 1999 was $5.15. Today it is $10.86. You can do the math yourself…
But here’s the result: At the end of the 20th century a worker had to work 12 years to pay for his house. He would have to work 19 years to pay it off today.
We don’t expect it to do complex calculations. But when a future president asks him to walk up Capitol Hill with a torch, he probably will. And this time, he’ll take a spade or two with him.