Janet Yellen blames “lack of competition” for inflation.

Photo above - Janet Yellen blames "lack of competition" for the lack of affordable homes. I blame scenes like this.

Is Janet Yellen too old and senile to be Secretary of the Treasury? She’s going to be 78 in a few weeks. She’s right up there with Biden, Trump, House Leader Mitch McConnell, Nancy Pelosi, Senate leader Chuck Shumer, Fed Chaiman Jerome Powell, and nearly half the supreme court. We are ruled by a gerontocracy of politicians-for-life who constantly smirk as they tell us "Don’t worry, be happy".

Yellen’s contribution to the debate came during her appearance on Squawk Box this week. She said that yes, inflation is a problem, but that “lack of competition” was the cause. NOT the fact that the government is spending twice what it collects in taxes, and has amassed $34 trillion in federal debt (that’s $100,000 for every man woman and child in America). See link below.

This “no competition” claim is both hilarious and scary. When pressed for examples, Yellen came up with bread and milk, which are up 30% since inauguration day. Wait . . . what? There’s a giant conglomerate controlling bread and milk? Not evident at the grocery store where I shop. There are about 200 companies represented on the bread aisle. Has Janet actually ever been in a supermarket since she turned 70? Or do her caregivers do that sort of stuff for her now?

Okay, so Janet's claim about bread and milk is complete BS. How about gasoline? There are more than two dozen oil refinery companies in the US. And then there’s Shell (the Netherlands), BP (the UK), and a bunch of other international players. This looks like LOTS of US competition, compared to Russia, China, Brazil, Mexico, the UK, etc. And energy prices are a huge source of American inflation.

Okay, maybe Janet can explain how “lack of competition” has created 40% housing inflation since inauguration day? Presumably there’s some ginormous construction company called “General Homes, Inc." which is secretly pulling the strings? I have a different take: high home prices are the result of cities, counties, and states adding layer upon layer of zoning restrictions which put both new construction and urban renewal on the slow road to nowhere. If you drive through any major city – New York, LA, or rust belt hellholes like Chicago, Cleveland, and Milwaukee, you see block after block of abandoned shells that probably should be bulldozed under “eminent domain” for new, decent construction. It isn’t “lack of competition” that preventing this. It’s elected officials and bureaucrats.

Yes, Ms. Yellen. I WOULD like to see more competition in America. Let’s start by replacing all our octogenarian lawgivers with a new generation who is in touch with how we live. I've had enough of millionaire politicians old enough to be my great grandmother or grandfather.

I’m just sayin’ . . .

~CNBC Exclusive: CNBC Transcript: United States Treasury Secretary Janet Yellen Speaks with CNBC’s Andrew Ross Sorkin on “Squawk Box” Today~

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Crazywaterspring · 61-69, M

I live in one of the fastest growing metro areas in the US. Whole housing developments are bought up by corporations as rental units. Homes aren't even built yet but they're bought.

Wall Street was given free money. Now they're using it and coddling up to trump for promises of more "free money."

There is a huge choice of products in grocery stores. But only 2-3 corporations own all those brands.

Inflation is due to corporate greed.

whowasthatmaskedman · 70-79, M

@Crazywaterspring If this is happening in your area, thats good news. The smart money says your area will be worth more later and they are investing their papaer dollars into what they see as an asset, like gold, for when the bum falls out of the currency..😷

SusanInFlorida · 31-35, F

@Crazywaterspring i'm not seeing that construction here. how can we get? do you have a link?

i read an article yesterday which says "appalachia is the new housing hotspot".

which is probably complete BS unless your company is moving to appalachia, or you have convinced yourself you can work from home forever, and don't mind the nation's worst schools.

whowasthatmaskedman · 70-79, M

She has a point. But not the one she thinks. The whole corporate vision shifted from high volume and discounting to sell, to lower volume and higher unit profit after the Covid shipping delays. Now it doesnt apply to existing homes, only new builds. But the same philosophy has cause ripples through real estate and has people looking to alter their work/life arrangements, which increases turnover. So in effect your 😷more expensive shoes and hot dog do feed into the house prices..

SunshineGirl · 36-40, F

Planning can be a constraint on housing supply . . although the blockages are more likely to be due to the influence of local property owners protecting their own investments/views/convenience than "bureaucracy" per se.

Large developers who can afford to "bank" land and restrict supply to maximise their profits. That is, and always has been, a major inflationary pressure. And one that could be relieved by more genuine competition at the mass end of the market (not just the same handful of large corporations marketing their product under different brands).

ffony · M

The root cause of inflation is human greed.

Prison1203 · 61-69, M

I blame democrats and their useless policies

trollslayer · 46-50, M

@Prison1203 Derrrrrrp!

Prison1203 · 61-69, M

@trollslayer why yes you are

SusanInFlorida · 31-35, F

@Prison1203 i blame deficit spending (both parties). which is essentially using government spending to buy votes on election day.

a balanced budget is needed

JimBeam · M

Referendum voting would solve most of our problems. I would bet the voters would vote for term limits. I would vote for one and done. Biden would have been gone decades ago.

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