Fed officials, but most of all, the Biden administration, were all wrong. Does anyone pay a price for gross incompetence anymore?
Issues & Insights . . ."As Fed chief from 2014 to 2018, Yellen must know that latter point. Too bad she comes from the Keynesian school of economics, which denies such self-evident economic truths.
"She, as do so many others, seems to have forgotten or ignored the clear lessons of the 1970s, when soaring spending (a 269% real increase in government spending during the decade), and out-of-control money printing to pay our monthly oil bill from the Mideast, set off scary levels of inflation that peaked at close to 15% in 1980.
"We’re in a similar place now. Only, our president doesn’t seem to get it.
"This week, he basically admitted he didn’t fully understand the baby formula shortage, which has sent prices for formula spiraling as much as 300% in some markets. “I don’t think anyone anticipated the impact of the shutdown of one facility – the Abbott (Laboratories Inc.) facility,” President Joe Biden told reporters Wednesday.
"Except, it was his administration that shut the plant in February due to safety concerns, leading to a formula shortage. And Biden was fully apprised of it in a meeting with manufacturers three months ago.
“ 'We knew from the very beginning this would be a very serious event,” said Robert Cleveland, senior vice president for North American operations of the Reckitt Co., as reported by RealClearPolitics.
"And contrary to the idea that inflation’s “good,” news in recent days shows just how wrong that is:" . . .
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