Look, we are all human. We all make mistakes. I get that and I certainly appreciate that. God knows, I’ve made more than my fair share of mistakes in my life. In fact, if you check with my wife, I’ve got to be in the top ten at mistake making!
But you don’t expect this from the so-called “experts”. Especially when they seem to be as well educated, and have held the high positions that someone like Janet Yellen has had.
And yet, she has now admitted, she was wrong about inflation.
Yes, Janet Yellen, former Chairman of the Federal Reserve, who’s only real job is to control inflation, and now the Secretary of the Treasury, has admitted that she was wrong about inflation.
This was Yellen on CNN: “I think I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t at the time fully understand.”
So, let me understand this, because this is one of the few times my wife would shake her head and say she couldn’t believe it if I happened to be right and some liberal economist with degrees in economics from Brown, and Yale (where she got her Masters and PhD), could be so far off base.
Yellen couldn’t believe that if you have large shocks to the economy, and we want to read that as over-printing of money, and cancelling oil drilling lease sales in federal lands as well as other administration policies that have utterly failed, inflation wouldn’t take over.
I think she needs to give back a few of those degrees. What the hell are they teaching at Yale, anyway?
You and I have for the most part, agreed on what has caused this latest bout of inflation. It was a Trump thing. Over the years Trump was in office, the average Consumer Price Index (CPI) was around 1.5%. Today, inflation hovers at over 8%. You can blame COVID, you can blame Putin, you can blame anything and anybody you want. The fact of the matter is that the FED’s top job is to control inflation. And they have failed miserably. Yellen, Biden, Harris, Jerome Powell, all said a year ago that inflation was “transitory”. What does that even mean? Then the “transitory” became “a good thing”. I can’t imagine when rising prices at the rate we’re seeing is a good thing!
Now, Biden is meeting with bankers, and Powell and others who supposedly have far greater economic knowledge than Biden does to see how to reverse inflation. The sad part is Joe, you can’t spend your way out of an inflationary spiral. You have to pull back and stop spending money altogether. Supply has to outweigh demand. That is simple Econ 101.
I think the mere fact that Janet Yellen would be even open to making such a stupid (and yes, it was not ignorance, it was stupidity) mistake as not knowing what causes inflation, when you’re supposed to be one of the brightest minds in the country on all things economic, you need to resign. Janet Yellen needs to step down, and get a job as a bank teller somewhere in middle America. Her credibility has now reached that of the president and vice president. That’s a sad thing for America. It’s one more example why Democrats can’t be in charge. They just screw it up!
Carry on world…you’re dismissed!