Yellen’s Inflationary Wonderland

Inflation has permeated the macro markets; where to from here?

Apologies in advance for some of the possibly confusing content to follow. But if this were easy anyone could do it, eh? There are a lot of balls in the air; balls known as inflation vs. deflation and most of all time frames.

The media present inflation as this guy picking out higher-priced fruit. Wait till he gets to the meat department! You can click the graphic for the article at CNBC.

Meanwhile, the Biden administration’s Minister of (financial) Information, Janet Yellen, informs us that all that cost-pushed inflation about to be shoved into the economy is actually going to be anti-inflationary as it actually lowers some costs (in Wonderland anything is possible).

Treasury Secretary Yellen says spending bills will be anti-inflationary, lowering important costs

Speaking from Rome, she insisted that “what this package will do is lower some of the most important costs, what they pay for health care, for child care. It’s anti-inflationary in that sense as well.”

Okay, those are noble goals. But Janet please, in order to be completely transparent you must rephrase thusly…

“What this package will do is lower some of the most important costs, what they pay for health care, for child care. We are taking the inflation already created (printed) by the Federal Reserve, which added more monetary units per finite assets, services, basic goods and human resources and we have selected within that our favored areas for benefit. Then you see, we are able to tout the wonderful things we are doing for specific beneficiaries while the inevitable tax is shoved (cost-pushed) into the general economy and the population at large pays the price of this beneficial action to specific areas. So come to think of it, let me just say that we are sweeping inflation under the rug here and delivering it there. It’s really a zero sum game but WTF do you want me to say publicly? Okay, we’re all screwed and the Fed is putting itself in a box; a dangerously small box.“

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