Posted originally on the conservative tree house on June 6, 2021 | Sundance | 109 Comments
Boy I’m glad she decided to take one last question at the end of her G7 Finance Minister press conference, because that one question was the one that mattered…. and it didn’t come from a U.S. journalist (go figure).
In this Q&A with Treasury Secretary Janet Yellen she is asked about massive ongoing inflation and why she is not worried about it from a U.S. monetary policy perspective. Her reply is jaw dropping. [Video at 25:10 prompted]
First, note the words used “my personal opinion is“, that’s a key *tell* that she is now shifting from economic discussion into the manipulated words of a U.S. political appointee who is in place to support the absolutely insane policies of the JoeBama administration. However, what she follows with is beyond absurd… it’s professionally false and filled with gaslighting.
Yellen says the COVID pandemic caused “DEFLATION” in 2020 and we are now circling back to year-over-year comparisons in pricing, and that is creating the illusion of inflation where no inflation exists. She claims pricing is returning to where it was at pre-pandemic levels. This is an absolutely absurd statement that every single reader of this site can see, feel and absorb in their own lives.
Her example of Airline prices returning to pre-pandemic levels is devoid of reality. Airline prices are dramatically escalating because fuel and energy prices have risen 40% or more over the past five months. When the airline industry was hit by COVID impact, to manage costs they shut down operations – reduced flights, put planes out of commission, eliminated on flight services (food beverages), and downsized their entire industry. They did not significantly lower prices.
Secondly, Housing prices did not drop…. rents did not lower… mortgage rates did not decrease… grocery store food prices did not drop (they went up)… “Away from home” food prices did not drop (they stopped or stayed the same),…. the cost of cars, hard goods, durable products, did not drop. Nothing dropped in price. Instead the sellers of products and services modified their businesses (or shut down) to adjust to the drop in customers. Barbers and hair stylists did not lower prices…. nothing dropped.
Businesses did not, DID NOT, lower prices. If anything, they added surcharges for modifications to their business.
Inflation rates this year have absolutely nothing to do with lower prices last year and “return to normal” prices this year. She is selling nonsense.
THAT is professional gaslighting from the Treasury Secretary of the United States. Quite remarkable.