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In The Meantime, Food Prices Jump The Most Since 1974

Tyler Durden's picture


With so much going on in the geopolitical/logical arena, it is easy to forget that there is an actual underlying economy which the Fed in its endless efforts to hike the Russell 2000 is doing all it can to destroy. Earlier we pointed out, when we looked at the PPI number, that the finished consumer food inflation index surged by the highest percentage in 37 years. This fact bears repeating. So we leave it to John Lohman to summarize briefly and succinctly as he is wont to do, how Americans will soon have no choice but to indeed eat their iPad 2 as soon as Benny unleashes QE3, which is now inevitable, or sooner.

It’s understandable that this morning’s spike in finished consumer food prices received little attention.  What with a mini-crash in housing starts, spent fuel pools running dry, USDJPY breaking the BOJ’s strike price of 80, and busted underwater POMO trades, there was no shortage of distractions.

Nevertheless, anytime an ecostat comes in at the 4th highest reading in its 64 year history, it’s worth taking note.  As shown in the chart below, the finished consumer foods component of the Producer Price Index jumped 3.9% in February alone.  But not to worry.  The core PPI only rose 0.2% in the month and ‘inflation expectations [among blue chip economists] remain subdued’.  Paging Mr. Dudley…


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Thu, 03/17/2011 - 01:12 | 1065471 TheGoodDoctor
TheGoodDoctor's picture

Food bitchez!

Thu, 03/17/2011 - 01:24 | 1065501's picture

What's so great about food? You can't eat it.

Thu, 03/17/2011 - 01:32 | 1065520 chumbawamba
chumbawamba's picture

Food is in a bubble.

I am Chumbawamba.

Thu, 03/17/2011 - 01:43 | 1065525 Michael
Michael's picture
This happens today.   Ron Paul To Hold Hearing On CPI Lies And Fed Inflation Creation; Jim Grant To Tesify

Thu, 03/17/2011 - 01:58 | 1065551 NewThor
NewThor's picture


Is Ben Bernanke the 3rd Anti-Christ?


Nostradamus says yes. 


Is Ben Bernanke the Anti-Christ that brings about a period of Global Lawlessness?


In the Holy Bible, the Book of Revelation appears to say yes.


One man is bringing down the globe and our Nation.


It's so heartbreakingly sad. But, God says all these things must pass.


The Earthquake/Tsunami/Meltdowns point to wisdom of John Steinbeck.

 "The best laid plans of mice and men."

And of NWO/satanic/Illuminati bitchez.

Will there be chaos, disorder and streets slick with slaughter?


....But it will allow for the old Shiva/Vishnu balance, from the ashes we can rebuild this

world the way it should be. We live in a time where opinion trumps truth.

These days are near an end. We stand at the darkening darkness.

But I have no fear, for the next Dawn, will be the greatest awakening of Mankind.

And it's about damn time.

Fuck you into oblivion Ben Bernanke and all your hellions.

Bring on the Mercury of Hercules, the Flower of Life.


Thu, 03/17/2011 - 02:01 | 1065558 Rastadamus
Rastadamus's picture

Is Ben Bernanke the 3rd Anti-Christ?

Nostradamus says yes.

And so do I........

Thu, 03/17/2011 - 02:24 | 1065588 Michael
Michael's picture

Ben does fit the archetype, but then again so does Obama. Satins minions are numerous.

Thu, 03/17/2011 - 02:27 | 1065591 NewThor
NewThor's picture

Obama falls under the 'False Prophet' category. 


Thu, 03/17/2011 - 02:27 | 1065592 Rodent Freikorps
Rodent Freikorps's picture

They all have that Imp look. Why can't people see it?

Thu, 03/17/2011 - 05:57 | 1065731 Twindrives
Twindrives's picture

Actually Obama falls squarely under "lying piece of dog shit" category.

Thu, 03/17/2011 - 06:33 | 1065753 jesse livermoore
jesse livermoore's picture

He is a cheap salesman .  "the Slap-chop guy ".  he is what they call a useful idiot...

Thu, 03/17/2011 - 07:10 | 1065799 Bitch Tits
Bitch Tits's picture

Satins minions? Would that be silk, nylon and polyester?

Sorry, not usully a grammar cop but couldn't help myself.

Thu, 03/17/2011 - 08:43 | 1066029 greased up deaf guy
greased up deaf guy's picture

"Sorry, not usully a grammar cop but couldn't help myself."

good thing you're not a spelling cop too.  sigh...

Thu, 03/17/2011 - 08:48 | 1066044 FOC 1183
FOC 1183's picture


Thu, 03/17/2011 - 02:36 | 1065598 macholatte
macholatte's picture

Benny and Husein Obama are mere fronts for the Soros machine puppet master.

You want an anti-christ, how about a Jew turned Nazi with billions of dollars, a following of fools, a global political structure and a warm bed in the White House.

Thu, 03/17/2011 - 02:44 | 1065606 NewThor
NewThor's picture

Soros more powerful than Ben Bernanke?

Glenn Beck, I'm glad you read ZeroHedge,

but I'm sad you're covered in Rupert Murdoch sperm.

It makes you look laminated.

Thu, 03/17/2011 - 02:47 | 1065614 Michael
Michael's picture

Maybe Ariel Sharon comes out of his coma and starts barking orders again?

Ariel Sharon still comatose 4 years after stroke

Thu, 03/17/2011 - 09:33 | 1066241 Matt
Matt's picture

John Steinbeck? seriously? the phrase "the best plans of mice and men", and the Title "Of Mice and Men", is taken from "To A Mouse" by Robbie Burns:

But Mousie, thou are no thy-lane,
In proving foresight may be vain:
The best laid schemes o' Mice an' Men,
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!

Thu, 03/17/2011 - 10:02 | 1066352 FOC 1183
FOC 1183's picture

never expect someone focused only on their agenda to be aware of the difference between Scotland's favourite son and plagiarism

Thu, 03/17/2011 - 02:05 | 1065561 TheGoodDoctor
TheGoodDoctor's picture

Crock, I can't believe you got junked. I thought it was funny and I like PM's.

Thu, 03/17/2011 - 08:35 | 1066008 narapoiddyslexia
narapoiddyslexia's picture


Thu, 03/17/2011 - 05:53 | 1065727 savagegoose
savagegoose's picture

LOL ill pay that comment.

Thu, 03/17/2011 - 01:26 | 1065507 DoChenRollingBearing
DoChenRollingBearing's picture

Play food inflation with Paper Food ETFs:

JJG: grains only

DBA: grains and other foods (sugar, coffee, etc.)

Thu, 03/17/2011 - 01:13 | 1065472 Milestones
Milestones's picture

Hot Damn-some more good news to carry into the week-end.       Milestones

Thu, 03/17/2011 - 01:27 | 1065512 Michael
Michael's picture
Geologist: Alarming magnetic field changes signal major quake for West Coast

If it happens, you heard it here first. Not to get your panties in a bunch over it as there's nothing you can do about it but it's not out of the question. Talks about animal behavior and mass fish kills. A Must Read.

"A former United States Geological Survey scientist says a major quake on the West Coast is imminent.

Jim Berkland predicts earthquakes…accurately.

Never heard of him? Perhaps you should—especially if you live on or near the West Coast of the United States, or know someone that does.

Anyone with an average 80 percent success rate predicting earthquakes should command attention, and lately Berkland has been in the limelight of the national media."

"The "ring of fire" that encircles the Pacific rim includes the region from Alaska south to South America. During the past several years earthquake and volcanic activity has been on the upswing all along the rim except on the northeastern perimeter.

Berkland believes that's about to change. He told as much to Cavuto: "The month of October, March, and April are the three most devastating earthquakes in terms of damage in the San Francisco Bay Area in history. And we are having on the 19th of this month not only the full moon, but within an hour the closest approach of the moon to the earth until the year 2016. The next day is the equinoctial tides. So you're bringing together three of the maximum tide raising forces. We know about the ocean tides. But there is also an Earth tide. And there is a tide in the ground water. All of these help to release sudden, built up strain, and cause earthquakes."

"Berkland says that the approaching seismic window is one of the largest in many years. He sees it developing between the 19th to the 26th of March 2011."

Thu, 03/17/2011 - 02:10 | 1065570 benb
benb's picture

Saw his Neil Cavuto interview on YouTube. I take his estimate seriously. I'm in Northern California so this is a bummer. If it comes like he says I just hope we have more than a week or so.

Thu, 03/17/2011 - 02:56 | 1065613 i-dog
i-dog's picture

Firstly, the HAARP brigade are also alleging that TPTB are planning an earthquake on the West Coast within the next few days [weeks?]. I wonder which prediction came first?

Secondly, the moon won't suddenly jump closer to the Earth on the 19th!! It will be inching closer each day then inching away again. So which distance away from us does it need to be to suddenly change from ineffective to earthquake-generating?

Thirdly, did Berkland forecast Christchurch or Sendai?

I suspect that this guy, who monitors sunspot activity and forecast both the New Zealand earthquake and Japan earthquake well in advance based on a combination of solar mass ejections and moon proximity, would be a better guide than either "CIA insiders" or Berkland. (

Keep some perspective.

Thu, 03/17/2011 - 03:11 | 1065630 JW n FL
JW n FL's picture
by Michael
on Thu, 03/17/2011 - 01:27


Geologist: Alarming magnetic field changes signal major quake for West Coast


are you sure you are not talking about the girl on youtbe with the stars pulling on the earth for the same time table?

if this guy and that girl are saying the same thing for different reasons? everyone cant be wrong?

but for the record! I hope they are wrong and "We the People" dont get our asses kicked by mother nature, again.

Thu, 03/17/2011 - 01:14 | 1065476 Spitzer
Spitzer's picture

On Bloomberg, it said that the Fed figures higher oil prices will tame inflation.

Its a sick world we live in...

Thu, 03/17/2011 - 01:41 | 1065533 theopco
theopco's picture

Tell me you're joking

Thu, 03/17/2011 - 05:10 | 1065700 Hedge Jobs
Hedge Jobs's picture

No, he's serious. Someone dickhead on CNBC website had an article on how high gasoline prices are actually "stimulatory" and good for the economy because it encourages development of alternative fuels and promotes more exploration, drilling and refining activity leading to more jobs.

Thu, 03/17/2011 - 05:54 | 1065729 savagegoose
savagegoose's picture

yeah and mass starvation promotes competition

Thu, 03/17/2011 - 08:15 | 1065949 Grimbert
Grimbert's picture

and deliberately breaking windows promotes the glazing industry

Thu, 03/17/2011 - 09:06 | 1066118 ZapBranigan
ZapBranigan's picture

and increased crime, burglary, and home invasions promotes growth in the home security sector.

Thu, 03/17/2011 - 11:56 | 1066844 Diogenes
Diogenes's picture

If high oil prices suck money out of the US economy and into the Middle Eastern economies that is deflationary for the US and inflationary for the ME.

Thu, 03/17/2011 - 19:05 | 1068893 SWRichmond
SWRichmond's picture

Yes.  Economies run on energy.  Certain authors here have made it clear, by shrieking endlessly at the top of their voices about energy production-related catastrophes, that they don't like oil, and really don't like nuclear.  Absent a viable proposed solution, which I've yet to see, I guess they doesn't like economic activity.  Which makes me wonder: cui bono, whose side are they on?

Thu, 03/17/2011 - 01:14 | 1065479 chumbawamba
chumbawamba's picture

ACS grade is technically purer than USP (pharmaceutical) grade.  Dosing is trickier, so you have to know what you're doing, but it's easy: 130mg per teaspoon of water is one adult dose.

Keep your wits about you.

I am Chumbawamba.

Thu, 03/17/2011 - 02:09 | 1065568 luk427
luk427's picture

Michael Jackson's doctor can help you out with the doseage.

Thu, 03/17/2011 - 06:42 | 1065762 Conrad Murray
Conrad Murray's picture

Rx - Take it all.

Thu, 03/17/2011 - 08:24 | 1065971 tmosley
tmosley's picture

Actually, it should be really easy.  You just measure out a large dose and dissolve it in water, and then the volume of water that you need is very easy to measure.  All you need is a scale that will resolve grams accurately, and measure out, say, 100 doses, which is enough for a family of five for a two week course, with some leftover to sell on Ebay.

Thu, 03/17/2011 - 01:14 | 1065480 bob_dabolina
bob_dabolina's picture

1 radiated parcel of food provides twice the nutirents.

Thu, 03/17/2011 - 01:26 | 1065506's picture

It made for a lot of laughs on Gilligan's Island once.

Thu, 03/17/2011 - 01:17 | 1065482 ss123
ss123's picture

Cost me $1.44 for ONE FRICKN GREEN BELL PEPPER AT WALMART the other day. Getting out of hand.

This post is not a joke.

Thu, 03/17/2011 - 01:23 | 1065500 Slipmeanother
Slipmeanother's picture

Dont be a baby, a gently braised I-PAD with carrots and fennel will feed a family of 4 for ages

Thu, 03/17/2011 - 01:49 | 1065540 BorisTheBlade
BorisTheBlade's picture

Make sure that you blend it properly:

Thu, 03/17/2011 - 14:19 | 1067490 The Captain
The Captain's picture

love it

Thu, 03/17/2011 - 01:51 | 1065545 FreedomGuy
FreedomGuy's picture

You can look at food you can't afford on your iPAD.

Thu, 03/17/2011 - 06:50 | 1065771 nmewn
nmewn's picture

LOL...+1...first laugh of the day!

Thu, 03/17/2011 - 02:37 | 1065597 ss123
ss123's picture

But I only have an iPad 1. What can I do? It must be old and moldy already because now there is the iPad 2. I don't feel like the cool kid on the block anymore.

I guess my kids will have to do eating old apple crap.

Thu, 03/17/2011 - 07:51 | 1065884 Meme Iamfurst
Meme Iamfurst's picture

"Cost me $1.44 for ONE FRICKN GREEN BELL PEPPER AT WALMART the other day. Getting out of hand."

That is not 'finished food'.  Finished food is processed food.  The "food" that is full of corn sugar (the new name for high fruticose corn syrup....which is corn that you can not eat and 3/4 of America is planted in).  Every FAST FOOD  chain serving burgers is finished food ( it too is full of corn by-products).

A cow or steer fed the crap will die in 150 to 160 days.  That is a fact!  Think about that the next time you put 'corn sugar' aka high fructose corn syrup in you shopping basket and feed it to your kids.   Diabetes anyone? Well 30% of Americans have it and growing and it is tracable back to corn up!

Just remember, your tax dollars give massive farm supports to grow this uneatable corn, but not to real food.

Just another example of this twisted governments payback for political seats in Congress.

Thu, 03/17/2011 - 08:32 | 1065995 Tejano
Tejano's picture

Grow your own.

Thu, 03/17/2011 - 10:15 | 1066402 krispkritter
krispkritter's picture

I noted that Target is selling bananas individually now instead of by the pound. It's like .35 per. And they have 'Personal Sized Melons' for $4.99, about a D-cup. The checkout girl was a C...

Thu, 03/17/2011 - 01:18 | 1065484 taraxias
taraxias's picture

this should be good for 100 points on the DOW tomorrow

Thu, 03/17/2011 - 01:17 | 1065486 chump666
chump666's picture

Get ready for the Japanese riots...on oil and foodprices.  Then China and so on...

Thu, 03/17/2011 - 01:23 | 1065494 Dapper Dan
Dapper Dan's picture

Mr Durden, You may be interested in MIT's new pet project on real time inflation.

Thu, 03/17/2011 - 01:23 | 1065496 russwinter
russwinter's picture

Per the MIT billion price retail survey, three month inflation is running 7% annualized.


Thu, 03/17/2011 - 01:37 | 1065518 Dapper Dan
Dapper Dan's picture

Great minds think a like, check the post times Russ.

(although my link is not in that nice blue hue)

Thu, 03/17/2011 - 03:43 | 1065645 Bear
Bear's picture

If truth can be told ... core inflation looks ready for launch pad ... by June, FED will have hands tied an be forced to quite QE.

However, since lies come easier from DC and NY, unemployment with rise while core remains the same ... QED QEIII 

Thu, 03/17/2011 - 07:18 | 1065804 Bitch Tits
Bitch Tits's picture

Misery loves company. Did you check out the other countries? Everything, everywhere is FUBAR.

Thu, 03/17/2011 - 01:31 | 1065498 SAME AS IT EVER WAS

Thu, 03/17/2011 - 01:24 | 1065504 Oh regional Indian
Oh regional Indian's picture

Same thing here in india. Crazy prices. $1.50 an apple, unbeievable here.

And IT enriched folks are spending $20 for a kilo of cherries. And ordinary folks cannot afford basic staples.

Food is/will be a trigger, what with nuclear damage yet to show it's ugly head.

Totally un-balanced world.


Thu, 03/17/2011 - 01:30 | 1065514 DoChenRollingBearing
DoChenRollingBearing's picture

Shi'ite!  $1.50 for an apple?!  

Maybe that's why I let my wife do the shopping...

Thu, 03/17/2011 - 02:15 | 1065577 CitizenPete
CitizenPete's picture

I can get a hugh plastic bag of apples (about 30-40) for 4.50 at a local orchard on Sundays.  These are the "horse apples" or culls - small marks, some times a bruise.   Biggest problem is that we can't eat them all before the go bad - I sometimes eat 2-3 day.   Wash them in diluted hydrogen peroxide when I get them home to preserve them longer.  

Thu, 03/17/2011 - 02:37 | 1065596 molecool
molecool's picture

Dude, learn how to make an apple pie. Those little horse apples have higher acid content and are perfect for that. Just use some flower with eggs, milk, sugar, and some salt. Roll it out on a big flat pan and then put those apples on it. You'll be surprised how delicious this simple recipe is. And you will eat it all in two days ;-)

Thu, 03/17/2011 - 04:48 | 1065683 Wakanda
Wakanda's picture

Let's compile a ZH recipe book!

How about freshly radiated sushi?

Thu, 03/17/2011 - 04:56 | 1065691 theprofromdover
theprofromdover's picture

No offence meant, but you can miss out the H2O2 if you just polish the apples and store them in a dark cupboard.

We also juice our bruised ones off the trees.

The new dawn is unfortunately low-tech, low transport, and low energy -if we get that far.

Thu, 03/17/2011 - 08:20 | 1065963 Grimbert
Grimbert's picture

Wrap them in newspaper so they don't touch each other. You know what they say about one bad apple. They last weeks.

Aternatively, peel them, put them in a saucepan with a lid and a tablespoon of water. Cook /steam til soft. Let cool, freeze in pie-size quantities until required.

Thu, 03/17/2011 - 01:29 | 1065510 HungrySeagull
HungrySeagull's picture

Used to haul Yakima Apples out of Washington to east. .15 to .25 a pound prior to 9-11 (At the Packer's wholesale shop on the dock)

Now 1.30 or more a pound in Walmart today. Keep in mind that they slashed many orchards and had a water issue for a while.

I like apples, schnapps and all of that but a bit of month old Cider takes it all.


The only thing I am waiting on is the COLA increase for next January.

Thu, 03/17/2011 - 01:54 | 1065547 FreedomGuy
FreedomGuy's picture

That's only for government workers. Taxpayers get to pay it.

Thu, 03/17/2011 - 01:27 | 1065511 SAME AS IT EVER WAS

I'm working on an IPAD 2 cookbook. Rib-bone and IPAD soup anyone?

Thu, 03/17/2011 - 01:33 | 1065519 chump666
chump666's picture

relief rally kicking in...reactor ok?  choppy trades.  BoJ pumping money.

Thu, 03/17/2011 - 01:38 | 1065527 Mongo
Mongo's picture

I like the iPad on the plate

Thu, 03/17/2011 - 09:42 | 1066277 Jim B
Jim B's picture

No worries, get the IPAD food App!

Thu, 03/17/2011 - 01:41 | 1065530 walcott
walcott's picture

soon all our food will be radiated.

Thu, 03/17/2011 - 01:53 | 1065532 Threeggg
Threeggg's picture

Another $76 Billion Dollars pumped into the Japanese stock market today !!!!

Thats $776 Billion and counting

and PM's don't budge ???????????????

Quadruple Witching this Friday have anything to do with it ?

Nah !!!!!!!!!!!!!

Thu, 03/17/2011 - 01:46 | 1065538 pigpen
pigpen's picture

Yawn yawn yawn, just your garden variety 4 penny move in yen and back and 300 point drop and turn around as if the market never opened.  All things flat - boring.  These centrally commanded FED intervening markets are boring.  I can see why no one wants to trade.



Thu, 03/17/2011 - 01:47 | 1065539 Sizzurp
Sizzurp's picture

Thanks Ben, you're a frickin genius.  Saved us from sudden death so we can all die nice and slow. So much good news, I can hardly wait to see what's next.  Maybe a sink hole will open up and swallow my house.

Thu, 03/17/2011 - 01:51 | 1065541 Out9922
Out9922's picture

I can't afford anymore popcorn for the upcoming fireworks

Thu, 03/17/2011 - 01:49 | 1065542 10kby2k
10kby2k's picture

Man cannot survive on eating p***y alone.

Thu, 03/17/2011 - 02:02 | 1065560 Dugald
Dugald's picture

Nah! yez needs Pappadums with it...

Thu, 03/17/2011 - 14:20 | 1067501 RockyRacoon
RockyRacoon's picture

On the other hand...

When sperm leaves the human male, it travels at a Lance Armstrong-grade bike speed of 27 miles-an-hour. It weighs in at about a teaspoon, contains three times the vitamins of a Jolly Rancher and fairly explodes with protein (about the same as an egg white.) As for calories? 5-7. Fewer than a cherry Life Saver. Bon Appetit!

Calorie content of sperm


Thu, 03/17/2011 - 01:58 | 1065552 apeakunderthehood
apeakunderthehood's picture


Nuclear Real Estate Meltdown Will Begin the Next Bear...

Thu, 03/17/2011 - 02:07 | 1065565 williambanzai7
williambanzai7's picture

Thu, 03/17/2011 - 02:19 | 1065583 SAME AS IT EVER WAS

Now that is truly awesome

Thu, 03/17/2011 - 02:40 | 1065604 NewThor
NewThor's picture

+ 1776 Quadrillion Federal Reserve Notes

Thu, 03/17/2011 - 07:11 | 1065800 Zero Govt
Zero Govt's picture

;-) haha 

Thu, 03/17/2011 - 02:38 | 1065599 ss123
ss123's picture


Thu, 03/17/2011 - 02:39 | 1065602 zebra
zebra's picture

free POMO app?

Thu, 03/17/2011 - 09:22 | 1066189 orangedrinkandchips
orangedrinkandchips's picture

good one! lol

Thu, 03/17/2011 - 05:05 | 1065696 Wakanda
Wakanda's picture

Silicon tastes yummy!

Extra WiFi and 3G goodness!

Irradiated in Asia to preserve freshness!

But wait, there's more!

Thu, 03/17/2011 - 03:27 | 1065635 ebworthen
ebworthen's picture


If you buy the groceries it is easy to see.

Fancy pants restaurants you may not have seen it yet; or if you have other people pay the bill.

They better ramp up the food stamps and QE3 or the SHTF like Middle East.

Beer/Bacon index is pegging.

This after +15% a year for "health insurance" and other costs and fees.


Thu, 03/17/2011 - 03:48 | 1065647 Bansters-in-my-...
Bansters-in-my- feces's picture

I will have to eat my Gold soon.

But at leat the price is going down.

FUCK OF PPT.(just in case one is reading this)

Thu, 03/17/2011 - 04:14 | 1065661 DeltaFunctionToronto
DeltaFunctionToronto's picture

Please warn humanity. We do not have much time.

We must work together to understand the beautifully intricate weave of the universe before it is lost forever.

I love you all and will work to keep you safe.

Please forward this to everyone you know, and ask them to forward it to their friends and family.

Humanity must work together to reach an understanding of the world before it is too late. All mathematics, science, literature, religion, and philosophy in all languages is consistent and of the same eternal source; it simply asks us to work together in our understanding.

The cost of not doing so will be apocalyptic, and the matter is further complicated by the greater deceiver.

Let it be known, truth cannot exist where deception is employed.

Gold is a living God and rules in scorn all earthly things but virtue.

Thu, 03/17/2011 - 12:01 | 1066870 Diogenes
Diogenes's picture

In other words we are doomed.

Thu, 03/17/2011 - 04:31 | 1065670 jmc8888
jmc8888's picture

After as much as the JCB threw into the fire (and none of it goes to rebuilding), I think we need to skip the QE3 name as Japan just did it.  It's now QE4.  (what the japanese did essentially went +1 to whatever number we were 'unofficially' at).  It's more important imo to judge all the printing around the world as one set of QE within the monetary system.  About 4-500 billion printed by any idiot central banker, give or take a couple of hundred billion sounds about right to be classified as a level of QE.

The gap between what the real physical economy is, and what the fake numbers 'must say' in a mark to myth environment, just got wider. 

The amount of actual economic output is at a newer lower level (for a long time) period.  YOU KNOW they are going to fiat those holes in the wall over.

They weren't holding together the old gap.  I just don't see how the fraudulent debt and derivatives can withstand such a newer, wider gap. Printing the shortfall now is going hurt big time.  (but they have no choice since they want to keep the fraud going)

We have Glass-Steagall.  Plenty of problems will still exist, until we fix them.  But we won't have a system forcing destruction upon us. That gives us a shot.  Rid of the banksters fraud, we'll meet that challenge. 

The monetary effects are going to go exponential from here on out (and this affect applies to all previously printed dollars).  We were already past that 'exponential' point, but now it will come much sooner than the Banana Ben's of the world anticipated, while at the same time, collapse will be increasingly evident all around us. 

The drop in supply due to Japan's lower economic production/activity is only going to intensify the already, recent, and coming effects of whats been printed via the hyperinflationary collapse.   Especially with 1.5 billion hungry people (soon to be 1.7?) with less food, and obviously in an unexpected (to producers) manner.

Thu, 03/17/2011 - 04:50 | 1065685 DeltaFunctionToronto
DeltaFunctionToronto's picture

Gold is a living God, and all the World's a stage.

Humanity must work together to understand this creation, or his existence will cease to be written.

Thu, 03/17/2011 - 05:04 | 1065697 Harlequin001
Harlequin001's picture

If Bernanke stopped printing money today do you think any other CB's would?

What do you think is happening in Europe and Ireland? Do you seriously think China and Japan aren't printing money either?

Looks to me like he's just one of many...

Thu, 03/17/2011 - 05:29 | 1065713 n2dark
n2dark's picture

June 2008

There is a difference between inflation which is driven by increased demand (fueled by purchasing power, rising wages and capacity utilization etc) and a temporary price increase fueled by speculation. Whatever they've printed is just for their own cartel members and as you can see they've made full use of it, while the aggregate demand (sustained by the purchasing power, not wealth effect and other illusory paper gains) is collapsing. In the meantime fraud has reached epidemic proportions in all forms of government with a few corporations controlling everything, from wars to what you're doing on your icrap. It is just a question of time until this delusional macroeconomic experiment will crumble under the pressure of ever increasing negative marginal effect. It may take a while, but eventually we'll see spx, oil, gold etc at their 1980-1990 levels and a lot of bankrupt governments and companies.

Thu, 03/17/2011 - 05:32 | 1065715 dcb
dcb's picture

those at the fed need to be trued in geneva at the world for crimes against humanity, genocide, etc.


pass this on to drugman, who besides bernanke and dundley remain the only people on the planet who think there isn't inmflation. it tells you how useless economists are. the fed makes and alters numbers to  suit what ever they want to say.

the reasons they do things are for public consumption, nothing more.


figure out how a policy makes the banks money and you know the real reason they do anything.

Thu, 03/17/2011 - 05:37 | 1065718 Cleopatra69
Cleopatra69's picture

And soon we'll be eating Gold and US Treasuries!

Thu, 03/17/2011 - 05:38 | 1065719 Cleopatra69
Cleopatra69's picture

And soon we'll be eating Gold and US Treasuries!

Thu, 03/17/2011 - 06:44 | 1065764 savagegoose
savagegoose's picture

that will be a shaving of gold with your treauries salad

Thu, 03/17/2011 - 05:54 | 1065728 writingsonthewall
writingsonthewall's picture

Investors eh? Like little moths distracted by the next 'bright light' to the exclusion of all previous bright lights.

It's interesting to see how the 'oil crisis' was forgotten when the Japanese refineries were damaged, but then Bharain reminded them about that crisis and they all returned.

This must be the end game now - even printing money seems to have stopped working! The BOJ pumps trillions into the market and the Yen continues to rise!

Bernanke - please note, this is the fate that befalls all reckless money printers - a total loss of control.


Thu, 03/17/2011 - 05:58 | 1065734 primefool
primefool's picture

Central Banking success in recent times has been all about keeping the relative value of one's own currency down. While acting all academic and sober and saying all the right things - of course.

Wonder if the model is changing? Witness the BOJ is not too fussed about the shlong Yen? Nor is the ECB too fussed about the Euro rocketing up. Soon China will show its hand.

Wonder if the US "global leadership" is seriously damaged. The Saudis send in their military into Bahrain without checking with Hillbilly first? Hmmm.

US relatively passive and impotent in doing anything constructive about the great cataclysm in Japan? Hmmmm.

Sooooo- why does the world need to regard the US Dollar as "special"..Hmmm?

Thu, 03/17/2011 - 05:59 | 1065737 primefool
primefool's picture

Japan is sooo screwed that the US Dollar is really tanking!! hahahahahaha.

Thu, 03/17/2011 - 06:00 | 1065738 primefool
primefool's picture

Endaka Fukyo - biches!! ( googl it)

Thu, 03/17/2011 - 06:08 | 1065739 DeltaFunctionToronto
DeltaFunctionToronto's picture

Lo, Japan

The first bell has metaphorically run.

Examine the bottom of the three crowned side of the 1990 Danish 5KR.

We must work together to defeat the great deceiver. Everyone must stay calm, as this imprisons him.

Thu, 03/17/2011 - 06:21 | 1065747 SWRichmond
SWRichmond's picture

1974.  That's about right.  If we're lucky.

Thu, 03/17/2011 - 06:23 | 1065750 Just Observing
Just Observing's picture

Little side observation:

I raise a few cows on my place, and have been paying 5 bucks/50lb bag for feed ( to supplement grazing/hay ) for several years.  Yesterday, the price was 6.50/bag, and was told the next load they get in will be 8/bag.  That's over a 50% increase in very short order.

You can look for prices along the "food chain" to increase shortly.

Thu, 03/17/2011 - 09:00 | 1066091 Abitdodgie
Abitdodgie's picture

I bought chicken feed the other day for some new chicks , the price had only gone up a dollar a bag, but then I noticed the bag had gone from 50lb to 40lb , so I thought what would your great leader BEN do , I killed all the chickens and now there is no inflation.

Thu, 03/17/2011 - 10:37 | 1066498 krispkritter
krispkritter's picture

Whole corn was $6.50 a year ago, now $9.50. Scratch grains were $10-11.00, now $14.50. Same with chicken crumbles, over $14. I now sell eggs for $3 a dz., were $2. Organic, range fed eggs are $4.50 in the stores...I'm now growing oats and corn just to make my own feed...

Thu, 03/17/2011 - 06:22 | 1065751 Debtless
Debtless's picture

Meanwhile - the U$D spirals the porcelain.

Thu, 03/17/2011 - 06:38 | 1065758 primefool
primefool's picture

Sh... Shhh... Shlong Doolar in da bestest intrust of der Amurrican peeeple.. ... yeah - there FU too.

Thu, 03/17/2011 - 06:45 | 1065759 pokrd
pokrd's picture


Inflation is a problem worldwide, but Food inflation would have a greater impact on the developing markets. For example United States only spends on average 10% of income on food, while a developing country like China spends almost 40%. I'd be watching this space closely going forward.


Thu, 03/17/2011 - 06:57 | 1065777 Debtless
Debtless's picture


However, with the top 400 Americans net worth equal to the bottom 150,000,000 Americans...the very idea of the american average CPI spend is absurd and misleading.

Thu, 03/17/2011 - 09:48 | 1066307 topshelfstuff
topshelfstuff's picture


A solution I thought we might have seen right after the Lunar New Year last month. I have already posted on this. I referred to those I call the EastBloc countries, the BRIC, BRICets, all of Asia, perhaps via the ASEAN 3+10 Group, S.America, all those in Africa and mid-East who are already EastBloc tied, making any "Fence-Sitters" needing to make a decision if they want to join in the Move. The "Move" would be a simultaneous, same day, same time, same Percentage, ReValuation of their Currency vs the USD. For one example it "could" be China ReValuing the Yuan to a (lets use) 3 to $1.00 Exchange Rate, and ALL the countries participating making the exact same ReValuation, connecting and tieing to the Yuan. 

This results in absolutely No-Change in Trading, Imports, Exports, between themselves. But it does make Food and Energy Costs a fraction of what they are today. It also helps the countries by Lowering the Cost of ALL Commodities, Commodities that countries, like China and India are already the largest Buyers of. All The People in these countries happy and the countries too.

The US/West has been asking China to ReValue for years, and keep in mind that China has been Urging their citizens to Buy Silver, having already strongly recommeded investing in Gold. Sure would make it easier to buy more gold and silver @3 to 1, instead of the 6.58 to 1 we have now. Sales, Exports, to the US/West are not only shrinking as the Emerging Markets are increasing, the US/West's buying is going on a Credit Card that is already having a hard time just paying the Interest, no big loss there.

The US could move first by Moving the Decimal Point Two notches, making $1.00 Current USD equal to $100.00. This would result in making foreign debt payable at 1% of its current valuation, with one line-item, at least, which would take care of the Mortgage Mess. Just keep ALL Mortgages Fixed at the Current Balance, yet Payable with the "New" USD. I think the EastBloc Move is the most likely.

Thu, 03/17/2011 - 06:41 | 1065760 primefool
primefool's picture

Yo - yeah -Yo - Endaka Fukyo  erm in da bestest intrusht of da japanese poiple?

Thu, 03/17/2011 - 06:52 | 1065772 primefool
primefool's picture

Whats the difference between a Central Banl governor and a Skinner pigeon ( look it up) ?"?

The Skinner pigeon is smarter.

Thu, 03/17/2011 - 06:56 | 1065775 primefool
primefool's picture

OK OK - here s the definition of Skinner pigeon:

One of B.F.Skinner's experiments back in the early days of the discovery of learning theory involved pigeons in boxes. The boxes had a food pellet delivery chute that dropped a pellet to the pigeon on a completely random feeding schedule. They used a random numbers table so that no one--including the experimenter--knew when the food pellet was going to come rolling down the food chute.

Skinner's pigeons did a very interesting thing. Whatever behavior they were doing just before the food came rolling down, they did more of. When it came down the next time, whatever they were doing before that, they did some more of.

Within a short length of time the pigeons are walking around . . . bobbing their heads, shaking their tails . . . and checking that food chute.


Thu, 03/17/2011 - 07:51 | 1065867 sudzee
sudzee's picture

Want to train a pigeon? Pigeons don't see well in the dark. Catch one at night, put him in a brown paper bag, spin the bag around and around for 5 minutes or so. Take the poor little bugger out and place him on a perch in your pigeon coup. Voila, when it wakes up in the morning it will automatically think the perch is its home and will return to it for the rest of its life.

Kinda like Americans being spun by professional politicians, educational system and manipulated media. Americans are taught to be dupes of the system. Time the population does some spinning. Start with elections at all levels being completely paid for by the electorate. That way you get politicians working for YOU not you working for THEM.

Politicains are all small time crooks working within a system that protects them from you. Take back control of your country by removing the noose around your necks. Your need to rob them of their means of control. A run on the banks will do just that. Use leverage against them. Every dollar you withdraw from their system will screw them out of at least 30. Bankers can't pay off your poltician if the ain't got no money.

Grow a pair of balls, a get some measure of self respect.

Just sayin.

Thu, 03/17/2011 - 07:00 | 1065783 primefool
primefool's picture

Pigeons are also good - lightly braised with a sprinking of curry powder -- unlike CB Governors.

Thu, 03/17/2011 - 09:59 | 1066346 yabyum
yabyum's picture

AHH YES! Squab breast with a drizzle of truffle oil, and a dry white. We will be fighting over bridge pigeons before this is done.

Thu, 03/17/2011 - 07:08 | 1065796 primefool
primefool's picture

grobar rebarancing - the hard way. Yen supah shlong - OK. So the Japanese poiple can buy anytink they want - OK. Americans need "jobs" - Right? unh huh. OK no watch dis.

Americans get jobs rebuilding japan - howzatt? Unh Hun.

Thu, 03/17/2011 - 07:23 | 1065803 Zero Govt
Zero Govt's picture

Benny the Bean can't get food inflation under control nor can he get deflation of property, and now stock market, prices under any control

He's a quasi-quango Govt crone and like all of them has zero competence ...this is an historical and current fact of every Govt... what's not to understand?

Thu, 03/17/2011 - 07:19 | 1065805 Hollywood
Hollywood's picture

I would plant a garden in my yard, but I'm afraid that MERS will come and take it from me.  Then foreclose.

Thu, 03/17/2011 - 07:19 | 1065808 AmazingLarry
AmazingLarry's picture

We gotta get the Bernank on a Wheaties box! Too bad we can't afford to drive to the store to buy one, though.


Thu, 03/17/2011 - 14:27 | 1067528 RockyRacoon
RockyRacoon's picture

I'd rather see him on the side of a milk carton -- missing.

Thu, 03/17/2011 - 07:30 | 1065831 baldtaco
baldtaco's picture

When does the other 80% of the sheeple wake up and realize what is happening. Most people have there I-pad so far up there ass that somehow they rationalize the price increase in all things except there homes. I don't have cable T.V. or an I-pad and the matrix is clear as day. I try to explain it to others but they just look at me like friggin idiots. That is why it will be so bad most people just don'thave a friggin clue.

.223 h2o au

Thu, 03/17/2011 - 07:31 | 1065836 Bitch Tits
Bitch Tits's picture

I just cleaned out the pantry yesterday, threw away all the old out-dated canned goods to make room for a few wiser buys.

Go long corned beef hash, peanut butter, and spam. Don't even have to heat it and all you need is a can-opener or a Swiss Army knife. A finger will do with the peanut butter.

Thu, 03/17/2011 - 07:52 | 1065881 Snidley Whipsnae
Snidley Whipsnae's picture

Your diet sounds a little unbalanced...Try adding vienna sausage and coat liberally with Smuckers Strawberry Jam...and twinkies for desert.

BTW, twinkies have a shelf life longer than the half life of plutonium so you will never need throw them out.

Thu, 03/17/2011 - 07:58 | 1065903 spanish inquisition
spanish inquisition's picture

Still time to plant a garden, although it will take some facetime away from the computer.

Thu, 03/17/2011 - 08:58 | 1066085 orangedrinkandchips
orangedrinkandchips's picture

First, him evading the question is like him telling the aduience "hey look! it's a blue car!".


1.) Obvious he is not dumb but very corrupt. He knows people are in pain because of his actions throughout his career, yet, he is extremely buffetted from anything. He doesnt write a check, pay a bill or anything.


2.) Now, we no longer have 1 king like the old days but rather 12 kings. Same shit, different century. 12 Kings instead of just 1.

3.) Receipie for disaster is when you have these 12 kings or so and that they are so far removed from reality is as obvious as a Greek Play. They really have no clue.

4.) To be honest, it is becoming aparent that they know wtf is going on. They know nothing is working. Yet, they do not have to worry because...wait for it..."THEY GOT THEIRS...SO WHAT?"


The beauty of it is it's all just imagine. Money is paper/cotton. You can try to take it with you as we decapitate Ben and his ilk, but I dont think they will take it in Hell.


99.9% vs. .01% are great odds for the majority. But, history shows us a majority DOESNT MEAN SHIT. Look at Russia 1917. 1 out of 100 were Bolsheviks YET THEY WON.


"let them eat cake"...that was spoken by a cunt who too was so far removed from reality. When it hit her, it was too late.


Same shit...different time.

Thu, 03/17/2011 - 09:24 | 1066203 JimS
JimS's picture


Thu, 03/17/2011 - 10:48 | 1066539 MarcusAurelius
MarcusAurelius's picture

Well...yes, food prices are spiking as feearful speculators rush headlong into commodities (much like the 70's) to preserve the value of their wealth with tangibles. The problem is when they do this you may not get a spike in core inflation but you do get a rush of captial into these small markets (which were never designed to receive this kind of capital) spiking price levels in each market, such as wheat, soya beans, sugar, etc. Obviously the trickle down effect is to hammer the consumer. A sustained increase that remains at these levels over time is what effects the core numbers. However that's the big "IF" isn't it? Oil in 2007 is a prime example of what happens when prices get too was the entire CRB index. The probelm is Bennie and the Jets are giving too much crappy capital to the banks. This is what they do. I mean what is the mystery here? They take cheap money and turn it into profits or so the idea goes until they get hammered with over leverage once again and lose all this free money PLUS. Zero hedge has already commented on the spike in leverage again, not just in the big banks but in the entire population as they try to relive the 70's again. Except this is not the 70's. You don't have that tool available any more that Volcker had. You can't spike interest rates. No what will happen here is about as ugly as what happened in 2007. Prices will crash and people will be wiped out again. Market conditions resemble the 1930's not the 1970's. This fact will be made very clear in the next two years or so. It is like saying that Japan is a great investment right now? Perhaps in value buying but that assumes that the markets won't fall or the economy is DONE contracting??? I doubt that. With debt to GDP at 200% and rising it still needs to flush the market distortions from its balance books of the 1980's. One could have said many times that Japan was a real steal and many times you would have taken a bath. 

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