Ben Bernanke: Currency debasement to continue into 2014

[Alan C.]

Ben Bernanke: Currency debasement to continue into 2014

Bernanke promised to continue debasing U.S. fiat currency into 2014, although it will continue long past that. He is leaving office, so he can say anything.

There is simply no way that the government can ever stop debasing the currency. Far too many people are dependent upon government largesse.

The counterfeiting will continue in order to satiate the parasites until one of two things happen: 1) price inflation makes it impossible to survive, or 2) price controls are imposed causing shortages. Either will result in civil unrest like we've seen in Europe and South America.

[Barry_diller]

 I agree how long do you think they can hold it together before complete crisis?

[Alan C.]

 It's difficult to make a precise prediction, but I'd be surprised if Obama makes it through his second term before something spirals out of control.

People are already noticing significant price increases of groceries and services. Despite complicity from media lackeys in perpetuating the lie that inflation is under 2%, the State isn't able to conceal the effects of their currency debasement. Every year, more Americans are squeezed to the point where they are unable to support themselves and have to consume their savings, sell assets, borrow money, or move in with relatives.

[tasmlab]

Two subtler indicators of inflation I've noticed recently is the advertising of the arbritrary price of $5 for a lunch, mostly because it is a nominal milestone.  Subway has the $5 footlong and $5 lunch specials and McDonalds is now advertising "5 meals under 5 dollars".  And this message is out because most of the meals are well over $5.  Even someone as young as 30 will still have the mental picture of $3 has a reasonable sum for a low-cost lunch.

The other thing is that at the grocery store you can see the message "still the same size" on various items, such as Ben and Jerry's icecream, suggesting that portions of food are shrinking.

This is all nuance compared with going to the gas pump of course.

[Alan C.]

I've noticed portions getting smaller; especially in canned goods and breakfast cereals.

One of the more amusing examples of this is the "half-gallon" of ice cream. They're now 1.75 or 1.5 quarts, but people still refer to them as a "half-gallon."

[Barry_diller]

 Also if you see inflation as really how much money is circulating in the system. The real inflation was 25 % last year, then these money get out in the real economy it will be the very ugly.

[Alan C.]

It wouldn't suprise me if the real rate of inflation was that high. Most of it is being tied up in bonds which is why we haven't seen prices rise as rapidly as they otherwise would.

[Guest darkskyabove]

 

I've noticed portions getting smaller; especially in canned goods and breakfast cereals.

One of the more amusing examples of this is the "half-gallon" of ice cream. They're now 1.75 or 1.5 quarts, but people still refer to them as a "half-gallon."

 

This is another way in which inflation is disguised. Though I don't think manufacturers are doing it to help the State's cause. As the prices of production go up, they can either raise prices, or lower quantity. Most companies have chosen to retain the price, forcing the reductions in size. I can understand the decision, though I'd rather they chose the other route, as price increases have the potential to get people paying more attention to what's going on in the economy, and getting angry.

And yes, Ben & Jerry's "pints" are, so far, still 16 oz.; Haagen-Dazs is 14 oz.

[Barry_diller]

yes an another approach is to constantly develop cheaper methods to produce those goods but for the most part it also hurt the quality. If we all bought the same quality food that was common in the 50's we would see how expensive food really is. Manufacturing has become so much easier since then, so if we lived in a non FIAT environment, food prices would have fallen greatly long term. The economy still expanded  before because technology progressed exponentially (it still does), but invertible Money expands quicker than the industry.

[Joey M]

Like the previous Quanitative Easings of the Fed, this one will just make an artifical short-term boost to the economy and result into another bust, giving the Fed an excuse to do more. Bernake said himself:

 “We learned from the first three phases that we can’t run out. Trillions, Quadrillions, Whatever! We’ve got the Magic Porridge Pot. When we want more, we just keystroke it.”[/font]

He refused to put time limits on this new phase of QE: “No, it will never end. We’re going to buy everything. The whole damned planet. Some stars, too. I want to buy some Black Holes. Those things are dense; you can stuff a lot of money into them.”

-http://www.economonitor.com/lrwray/2013/05/14/news-alert-fed-announces-round-four-of-quantitative-easing/#sthash.JuBgDLxK.dpuf

[DoubtingThomas]

I for one cannot wait to see who his successor will be. Given that Uncle Ben is now being painted as too conservative for his position, one can only imagine the glorious hyper-inflating chairperson to come.