Treasury Secretary Confesses: “I Don't Understand Inflation”
During an interview aired on CNN’s “Situation Room,” Biden Administration Secretary of the Treasury Janet Yellen admitted “I don't understand inflation. Everyone in the Administration is dead set against inflation. It's not like there are disagreements regarding its negative effects. Yet, despite this unanimity among those of us making economic policy inflation is wrecking the lives of ordinary Americans.”
Yellen's admission was stunning considering she has a PhD in economics from Harvard University, spent nearly twenty years at the Federal Reserve—serving as its Chairperson for five years—helping manage the nation's money supply, and was on President Clinton's Council of Economic Advisers.
“I mean, how can gasoline prices be rising when the President has decreed the nation must transition to green energy?” the Secretary wondered. “If the government is in the process of making fossil fuels illegal and obsolete why aren't gasoline prices collapsing like the prices of other obsolete energy sources like whale oil collapsed? The only credible explanation is price-gouging by the greedy manufacturers.”
“Clearly, we need to bring back the price controls that worked in the 1970s under Nixon, Ford, and Carter,” she asserted. “This policy was so successful it was dubbed 'stagflation' because it stagnated the inflation. The whole country was unified behind a comprehensive system that brought Republicans and Democrats together in a common goal to whip inflation. The long lines to purchase gas were a much more effective means of encouraging conservation because time is more valuable than money. It was reluctance to pay the high time cost of obtaining fuel that broke the back of inflation then and could do it again today, 50 years later.”
“Of course, the real wild card is the possibility of nuclear war between Russia and us over the Ukraine situation,” Yellen observed. “On the one hand, hundreds of millions of people would die and the entire industrial foundations of modern life would be destroyed. On the other hand, a return to a pre-civilized mode of living would force us to reevaluate our materialistic habits and live more naturally constantly on the brink of starvation. The ills of a sedentary life style—obesity, diabetes, heart disease—would fade away, as would the burdens of caring for the elderly. We might actually be better off in the long run if this did happen.”
