“The United States faces an unacceptable level of inflation according to Janet Yellen!  » Editorial by Charles SANNAT - Insolentiae

“The United States faces an unacceptable level of inflation according to Janet Yellen! » Editorial by Charles SANNAT – Insolentiae

My dear impertinents, dear impertinents,

Janet Yellen was the former great helmsman of the American central bank since she was the president of the FED before being replaced by Jerome Powell. In the meantime, she has become Secretary of the American Treasury, it’s a bit like our Minister of the Economy, but much bigger, we are still talking about the United States!

In short, I still remember this Ecorama program where David Jacquot told me that I could not say that inflation was going to be strong and lasting while Janet Yellen, excuse me, said that it would be transitory and that there was no need to worry.

I therefore quote with a certain greed and undisguised insolence this little passage from this dispatch from the Reuters agency (source here).

“Janet Yellen has come under heavy criticism from the Republican camp since admitting she was ‘mistaken’, declaring last year that inflation was ‘transitory’ as rising prices now hit a 40-year high in the United States.

Poor bichette, that said, he must be excused. She only has an administration of thousands of civil servants and analysts, not to mention the almost limitless means of the American State, but despite all that she is at a great disadvantage compared to me, since, as you know, it is common knowledge that I have crystal hens that allow me to see the future, not to mention my gray cat and the little parachute, and a whole friendly Norman menagerie. So inevitably, the Janet, she can’t compete with our analyzes of the attic.

Let’s get serious again.

US facing ‘unacceptable level of inflation’, Yellen tells senators

“The United States is facing an ‘unacceptable level of inflation’ and an appropriate fiscal stance is needed to help ease inflationary pressures without hurting the economy,” US Treasury Secretary Janet Yellen said on Tuesday.

“We are currently facing macroeconomic challenges, including the unacceptable level of inflation, the turbulence related to the disruptions caused by the pandemic on the supply chains and the impact of the disruptions on the supply in the markets. oil and food resulting from the Russian war in Ukraine,” she said.

Ok Janet so I guess in order to bring down inflation we’re going to try to make peace in Ukraine and with Russia that we’re going to help bring down oil prices by buying power from the Russians and not putting embargoes. I also assume that we are going to invest to increase production capacities and help our partners like China to reduce the bottlenecks linked to Covid and while we are at it review the zero Covid policies which still raise questions.

By doing all this, inflation, without disappearing, should still fall.

Well no.

“To ease inflationary pressures without hurting labor market strength, an appropriate fiscal stance is needed to complement the Federal Reserve’s monetary policy actions,” she said.

So.

Do you know what an appropriate fiscal stance means?

It means that we inject less public money into the economy and that we create the conditions for recession.

A recession linked to monetary policy (raising Fed rates and stopping liquidity injections).

A recession linked to fiscal policy (less public spending).

The great American idea is to create the conditions for a major recession to crush demand.

They should get there pretty easily.

Building takes years.

Destroy only seconds.

It is already too late, but all is not lost.

Prepare yourselves !

Charles SANNAT

“Insolentiae” means “impertinence” in Latin
To write to me charles@insolentiae.com
To write to my wife helene@insolentiae.com

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