For those of us who can recall the “olden days” of inflation out the gazoo, it sure looks like we will have an opportunity to relive those wonderful days. I recall getting a 12 percent mortgage and thought I was lucky. Inflation, the cruelest tax of all and we about to have it in spades. Last month we learned that headline CPI rose 4.2% for the year ending in April. but it is the May print that could be an “absolute shocker.”
“An Absolute Shocker”: Core CPI To Hit 4% In Two Weeks?
Worse it seems that the Biden crew is embracing inflation and doing what it can to aid and abet. According to Yellin, Inflation is good for us. Take a look at lumber.
Lumber Is Crazy Expensive Right Now. Biden Is About To Make It Worse
Amid surging lumber prices that are already adding an average of $36,000 to the construction cost of new homes, the Biden administration is moving forward with plans to double tariffs on lumber imported from Canada. The Commerce Department announced on Friday that it was taking the first step toward hiking so-called “anti-dumping tariffs” on Canadian lumber from an average rate of 8.99 percent in 2018 to 18.32 percent for 2019.
Yes, 2019. If approved through what is likely to be a lengthy review process, the tariffs would apply retroactively to purchases made for the past two years. That means American importers could be on the hook for millions of dollars in taxes they didn’t even know they would owe—taxes that will likely be passed down the supply chain in the form of higher prices.
And our gal Yellin?
So, scrambling to preempt the barrage of questions come Monday, on Sunday Janet Yellen said that even though inflation is now at the highest level since Paul Volcker hiked rates to 20% and the US is about to issue another $3 trillion or so in debt just to fund existing stimulus programs, Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates.
Why? Because soaring inflation is good for you.
“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen said in an interview with Bloomberg. And yes, she really said that.
“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” the former Federal Reserve chair said, adding that “we want them to go back to” a normal interest rate environment, “and if this helps a little bit to alleviate things then that’s not a bad thing — that’s a good thing.”
It wasn’t immediately clear why rising rates, hence inflation and a drop in one’s purchasing power is “a plus for society’s point of view” but needless to say, this is the kind of idiotic drivel that Rudy von Havenstein and his cronies said some time in 1921, just around the time Weimer hyperinflation kicked in.
The debate around inflation has intensified in recent months, between those who, like Yellen, argue that current price increases are being driven by transitory anomalies created by the pandemic — such as supply-chain bottlenecks and a surge in spending as economies reopen — and critics who say trillions in government aid will fuel a lasting spike in costs.
……..
Yellen also made it clear that even though the world is now more indebted than at any time since World War II, it is about to take on even more debt, because you see, it’s contained: “There is a concern among some about fiscal sustainability and an evident desire to begin to withdraw accommodation when things are back on track,” Yellen said, eyeing her former democrat buddy Larry Summers who has emerged as one of the biggest critics of “Biden’s trillions.” Yellen dismissed his concerns simply by saying that “we think that most countries have fiscal space.”
“I will not give up on the next packages,” Yellen said. “They’re not meant as stimulus, they’re meant as investments to address long-standing needs of our economy.”
Yes, she really said that, and yes she better be right about the “transitory” inflation part because we are about to get a whole lot more of it. Biden’s packages would add up to roughly $400 billion in spending per year, Yellen said, contending that’s not enough to cause an inflation over-run. Any “spurt” in prices resulting from the rescue package will fade away next year. And, if she is wrong, well… it will be someone else’ problem to mop it up.
And that is the best the swamp has to offer today.
October 18, 2023 at 4:34 am
[…] Yellen Concedes Inflation Is About To Surge, Says It Will Be A “Plus For Society” […]
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June 21, 2021 at 5:19 am
Good blog post.🌞 🌞 2021-06-21 05h 17min
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June 7, 2021 at 7:02 pm
We are already seeing rising prices on almost everything and this is only the beginning! But at least we are rid of the bad orange man…
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June 7, 2021 at 7:03 pm
We never wanted full employment anyway did we Steve? So much fun having raging inflation. We can all get a wheel barrow to carry our cash.
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June 7, 2021 at 6:18 pm
Suddenly, everything they said WILL NOT HAPPEN, and IT IS…and it’s GOOD FOR US. We’re just too stupid to understand. RIGHT? oy!
This will be awful for those without much money….(and those of us who aren’t in tents yet but aren’t rolling in dough)……the Left doesn’t care. Sickening
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June 7, 2021 at 6:50 pm
Pretty brazen Z to tell us that inflation is just what we need…. they do think we are simpletons don’t they?
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June 7, 2021 at 11:48 am
What did you expect from an administration headed by a man who hasn’t been right about anything (emphasis on anything) in the past 50 years?
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June 7, 2021 at 12:01 pm
“fighting inflation that has been too low”’ – says it all.
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June 7, 2021 at 11:23 am
I remember the days of inflation during Jimmy Carter’s administration. It was not fun.
Don’t try to sell it as something that it is not, Yellen.
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June 7, 2021 at 11:26 am
You didn’t like the 11% mortgage rates?
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June 7, 2021 at 12:01 pm
I think it went as high as 22 percent as I recall…. I was a first time home buyer and lucky to get that…
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June 7, 2021 at 1:00 pm
I was 11% in 1980 and remember credit card interest was 26% +
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June 7, 2021 at 12:14 pm
I sold my first house to a couple that paid that rate.
And I made $15k having only been in the house 18 months.
Then I rented a while til things got sane again.
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June 7, 2021 at 11:19 am
The government (party in power) never makes statements for the purpose of making good things happen. The government (party in power) makes statements to make it appear that what is happening is a good thing. What is happening is utterly beyond the power of the government (party in power) to control, or even influence, so they wait until they see what is happening and them they make up some bullshit to tell us how they caused it and what a wonderful thing it is.
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June 7, 2021 at 12:02 pm
They could stop printing money for.a start……
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June 7, 2021 at 8:03 pm
No, they can’t. Instant disaster, and they know it.
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June 7, 2021 at 8:07 pm
Raising interest rates will doom us…..
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June 7, 2021 at 8:08 pm
Yep, we actually borrow more just to pay the interest on the debt.
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June 7, 2021 at 10:41 am
Inflation is the great equalizer. Inflation makes everyone makes everyone poor. That is the progressive dream. By eliminating economic power and choice you hamper political power and choice. That will bring about their long sought after progressive utopia. Look to Venezuela for an example.
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June 7, 2021 at 11:04 am
It is almost like they want to see America fail…. and since when does Yellin tell us what policy the US should have? It looks like I will live long enough to enjoy the Utopia… no wait… age 75 and its time for us to exit… part of the Utopian dream.
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June 7, 2021 at 4:07 pm
I’d like to make that the topic of my show this week, but I’m not sure how to approach it, or with what economic experts(s).
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June 7, 2021 at 11:08 am
Aaah Venezuela. Utopia 101. One week ago Saturday we sent our latest shipment to our four families there. Having an opportunity to have dinner with Ozzie the owner of the shipping concern we questioned the 4-5 week transit time. He explained this was due to the Maduro government changing regulations almost on a week to week basis. Cutting out his rather lengthy cogent explanation, simply put the government does this to f__k with the system…because it can. Sound like any one we know?
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June 7, 2021 at 12:04 pm
Actually, it would be a good move to have the Venezuelans move on over here… they have had the taste of the Utopian dream… before and after.
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June 7, 2021 at 11:32 am
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June 7, 2021 at 12:05 pm
Excellent….
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June 7, 2021 at 12:54 pm
Truth is stranger than fiction.
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June 7, 2021 at 10:28 am
[…] Yellen Concedes Inflation Is About To Surge, Says It Will Be A “Plus For Society” […]
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June 7, 2021 at 11:05 am
Thanks for the link…
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June 7, 2021 at 7:29 am
Like “Where did Covid come from?” last year, “why the price of lumber is rising” has conflicting answers.
I tend not to trust those from the government.
And which inflationary trends are the result of Covid-influenced logistics, hoarding, trillions of debt, or money-printing?
The price of ammo is out the roof, but has only tangentially to do with monetary policy. Policing policy, though…
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June 7, 2021 at 7:32 am
I probably lean toward the old fashioned way of inflation, money-printing. Its a known cause..either way the end result is the same.The value of the dollar remained stable for a hundred years until the federal reserve was created.
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June 7, 2021 at 7:34 am
The value of the dollar remained extremely stable for 150 years, the Fed was created in order to “stabilize the value of the dollar,” and the result has been a 95% devaluation of the dollar in less than 100 years following its creation.
From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. A dollar could buy 11% more goods in 1912 than in 1776. Thus, if in 1776, you sat on your savings pile of $1,000,000 for 136 years, it would then be worth $1,110,000 in purchasing power (it will have appreciated in value by 11%). A loaf of bread for Thomas Jefferson cost the same as a loaf of bread for Lincoln 50 years later and again the same for J.P. Morgan 50 years after that. Read more: Dollar Stable until the Federal Reserve
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June 7, 2021 at 10:44 am
The Harris/Biden regime will depend upon a dual edged sword called inflation: monetary inflation caused by money printing and price inflation caused by regulations. Increased regulation increases costs and hence increases prices. That is what happens when you take and pass math classes. All of that critical thinking has to go.
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June 7, 2021 at 11:11 am
In government speak destabilization equals stability….I guess.
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June 7, 2021 at 11:19 am
At some point, the US government realized what a huge gold mine the middle class was/is. Feeding frenzy. What it can’t steal from us directly, it does through inflation.
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