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Presenting The Fed's Slogan: "Making It Harder To Feed Your Family For 98 Years And Counting"

Tyler Durden's picture


One of the side effects of the overarching "price stability" mandate of the Fed, it turns out, is the fact that since its inception, food and pretty much all other commodity prices have, well, gone up non stop.

All of this, of course, is courtesy of the relentless loss of dollar purchasing power, shown below on a log scale. At this rate, the dollar will have negative purchasing power in under 10 years.

And, no, sorry exporting inflation to China (thank you 50 years of globalization and economic hitmen) to keep the price of everything in the core inflation bucket low ain't gonna cut it anymore. Other countries don't need US debt any more - they have enough of their own.

Chart courtesy of John Lohman


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Wed, 05/25/2011 - 15:14 | 1309964 mynhair
mynhair's picture

No soup for you, bitchez!

Wed, 05/25/2011 - 15:23 | 1310028 Xibalba
Xibalba's picture

Why should they care?

Wed, 05/25/2011 - 15:30 | 1310043 redpill
redpill's picture

Exactly, when you drink blood, who cares what the price of bread and milk are?

Wed, 05/25/2011 - 15:41 | 1310108 OpenEyes
OpenEyes's picture


Wed, 05/25/2011 - 17:22 | 1310419 BlackholeDivestment
BlackholeDivestment's picture


...BTFD Cup of Fornication, put on the Bernank Shnikies and wait for the comet to run, muuuh ha  haa haaa.

Wed, 05/25/2011 - 18:41 | 1310727 FEDbuster
FEDbuster's picture

"On a long enough timeline the value of the dollar will fall to zero." Ben Bernanke?

Or as Dr. Marc Faber said, "It took the FED almost 100 years to devalue the dollar 97%.  The next 97% devaluation won't take as long."

Wed, 05/25/2011 - 20:24 | 1311089 Hook Line and S...
Hook Line and Sphincter's picture

They drink blood while they make us drink cum. My lips are tearing at the seams, goddam that ceock is big.

Wed, 05/25/2011 - 20:28 | 1311101 akak
akak's picture

My lips are tearing at the seams, goddam that ceock is big.

Clearly, you are not DSK's hotel maid.

Wed, 05/25/2011 - 16:50 | 1310315 bbq on whitehou...
bbq on whitehouse lawn's picture

Bread is 3.99 a loaf and milk is 1.09 a quart.

Blood i dont know but then i still produce my own blood. Not so with Bread and milk. 

Wed, 05/25/2011 - 17:30 | 1310485 serotonindumptruck
serotonindumptruck's picture

Blood, milk, and honey. The stuff of life.

BTW, the price of honey is becoming very inflated. $8.99 for 32 oz. of the generic brand.

Of course, something is causing this new phenomena known as Colony Collapse Disorder, with potentially devastating effects on the human food chain, but that's definitely another issue entirely.

Wed, 05/25/2011 - 17:07 | 1310384 mraptor
mraptor's picture

+ 666

Wed, 05/25/2011 - 15:45 | 1310111 Thomas
Thomas's picture

It's all expectations. If people would only buy core-inflation goods instead of that necessary crap, they wouldn't notice the price rising. Of course, as the Fed says, the masses always get it wrong so, if life looks like it really sucks, it must be peachy.

Wed, 05/25/2011 - 16:53 | 1310339 Manthong
Manthong's picture

Hmmm.. This guy's got the right idea for beating the Fed, but iPads are higher in fiber and essential minerals.

Wed, 05/25/2011 - 21:39 | 1311375 rocker
rocker's picture

Robo says you will eat well if you buy some Polo Ralph Lauren or Abercrombie and Fitch. LOL

Wed, 05/25/2011 - 15:36 | 1310085 NoLongerABagHolder
NoLongerABagHolder's picture

This data is so skewed with an agenda...... The amount of dollars we get per hour of work has also skyrocketed in that same amount of time.

An author I read said it best:

If I have to work 15 minutes to buy 1 gallon of gas at $4.00 a gallon compared to 10 years from now when the price of gas is $10 a gallon but I only need to work 10 minutes to buy it, did the price rise hurt me?

ZH again leaves out some very basic but important info to keep the bias of the collapse of America.

A little reality check for ZH:

Both charts are from this article:

"The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it... But though labour be the real measure of the exchangeable value of all commodities, it is not that by which their value is commonly estimated... Every commodity, besides, is more frequently exchanged for, and thereby compared with, other commodities than with labour." - Adam Smith, The Wealth of Nations, 1776

"What is a cynic? A man who knows the price of everything and the value of nothing." - Oscar Wilde, Lady Windermere's Fan, 1892.



Wed, 05/25/2011 - 15:41 | 1310106 EscapeKey
EscapeKey's picture

Well, yes, because of oil and other energy sources, which the Fed has absolutely nothing to do with.

It's ok if I rob you, because your boss will pay you next Friday anyway.

Wed, 05/25/2011 - 18:01 | 1310572 macholatte
macholatte's picture


The statistics are from a bygone era. The world is a different place since 2008 and we are traveling uncharted waters. The fundamentals are shifting. Here are some real, hard facts that trump all the numbers:

* There’s a Communist-Muslim in the White House.

* His puppet master is a Nazi.

* The Progressive Party controls the USA political parties.

* The Fed is engaging in behavior that has never been done before.

* 47 Million USA people on food stamps.

* $15T USA debt load @ 90% GDP.

* MSM has become a propaganda machine for the Progressives.

* PIIGS threaten the EU.

* Government Sachs runs the USA Treasury

* China & Russia have a non-aggression pact.

* USA police state growing

* Global agreements to control the internet and flow of information

* Middle East oil financing growing Islamic threat to the west

* War, War and more War


With luck, in 20 years we'll look back at the charts showing nothing more than a pimple for 2008-2015. With a lot of luck.

All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
Sun Tzu

Wed, 05/25/2011 - 20:41 | 1311149 Vuvuzela
Vuvuzela's picture

he is not muslim thats the hoax

he is of a ceratin race and culture, dig that you will be amased what you will find

Wed, 05/25/2011 - 18:50 | 1310765 morkov
morkov's picture

what about the value of a human that needs to spend time (life) on a necessary task? should it be priced in? governing included? or are we starting from scratch again? LOL

Wed, 05/25/2011 - 15:46 | 1310117 Thomas
Thomas's picture

Oil is up tenfold in a dozen years; how's your salary over this period?

Wed, 05/25/2011 - 15:52 | 1310143 NoLongerABagHolder
NoLongerABagHolder's picture

Sure if you want to data mine. ZH posted from 1929. Look at the % of disposable income from there. Shoudl I pull out the oil price drop from the 1970's high and determine the same thing in the opposite direction? Of course not.

Over time, salaries have more than compensated for the rise in prices or the loss of purchasing power. Commodities are more violent in price than wages. It will not be differnet this time. They will stay high for awhile as a % of income, and then we will have a cycle in which we will see them low from a historical basis as a % of income. If you are planning on forever high prices as a % of income and loading up on gold and commodites for life, you are a fool.


Wed, 05/25/2011 - 15:54 | 1310150 LawsofPhysics
LawsofPhysics's picture

Show us real numbers fool.  


Wed, 05/25/2011 - 16:01 | 1310179 NoLongerABagHolder
NoLongerABagHolder's picture

Real numbers have already been given fool......

or should I say cynic?

Wed, 05/25/2011 - 17:19 | 1310423 LawsofPhysics
LawsofPhysics's picture

No, you have not fucknut.  Yeah, we are all going to be billionaires someday!  Silver and gold have the same buying power, but not paper.  You could be making 50K per year today and if you had a wife and one kid you would NOT be able to survive in any major city.  You would also be eligible for food stamps (and would need them).  Thank the fed for this "wealth effect" and keep drinking the kool-aid idiot.

Wed, 05/25/2011 - 18:21 | 1310643 FOC 1183
FOC 1183's picture

"fucknut" is a keeper.  And the guy should pick a better example than gas:

Wed, 05/25/2011 - 17:05 | 1310381 Dental Floss Tycoon
Dental Floss Tycoon's picture

Real numbers.  In the late 40s I could buy two hotdogs and a 12 oz Pepsi for a quarter.  That same quarter with a melt value of $6.84 will still buy me the same.  I might even get a little change.

A quarter in 1964 would buy me about 0.83 gallons of gas.  The same silver quarter now would buy me twice as much.

Silver bitches.  No inflation.

Wed, 05/25/2011 - 17:17 | 1310425 LawsofPhysics
LawsofPhysics's picture


Wed, 05/25/2011 - 18:21 | 1310641 scratch_and_sniff
scratch_and_sniff's picture

The relative share of GDP(what something was worth then compared to the economy now) for a quarter in 1964 is $5.52 in 2011, and $5.52 would buy you more gas today. If you had of held that quarter in your pocket for 47 years then yes you would have lost. If you had of held ANY currency in your pocket for that long it would have lost. That’s down to increasing money supply for a growing economy, wage increases and increasing and changing trade. But it does NOT mean you were wealthier then. You are much wealthier now through higher standards of life, working conditions, health care, housing, food... Moreover, if you had of held that quarter until 1957 and then invested it in the S&P with the compounded annualized growth rate of ~6.69% you would be worth $9.02.

The guy posting above is right, these charts are posted to generate clicks, ZH knows that the ignorance on this site is rife and the feeling towards the fed and government is bleak, so they are put there just to excite because they paint a certain picture. You're time spent here is a commodity to ZH, you're posts have a nominal value to them gained through advertising and donations. Its a business model.

Wed, 05/25/2011 - 18:32 | 1310679 FOC 1183
FOC 1183's picture

Do you really believe the bullshit that is hedonics?

Wed, 05/25/2011 - 19:01 | 1310802 scratch_and_sniff
scratch_and_sniff's picture

It's nothing to do with happiness, or trying to gauge it. Its about tracking relative values over time - if you attach happiness to worth or want to believe there is some pseudoscience that can pinpoint it, then whatever floats your boat, but no, that’s not what im talking about, sorry.

Wed, 05/25/2011 - 20:38 | 1311134 FOC 1183
FOC 1183's picture

then I apologize for misunderstanding.  but it sure sounds like you're trying to justify 'quality' improvements to inflation measurement (ie, hedonic adjustments).

My only point (and, though I disagree, very much enjoy open debate), is that, as pointed out below, much of what you refer to is the result of productivity enhancements.  The hedonic adjustments to the CPI are, although I don't disagree with them in 'theory', totally subjective.  As such, they, in the end, only distort the accurate measurement of price changes (and resulting loss of purchasing power).

Wed, 05/25/2011 - 21:13 | 1311261 scratch_and_sniff
scratch_and_sniff's picture

Ok man, it may be theory(if you can better it, a Nobel prize awaits), but in my book, theory comes before suspicion and wild assumption, and i would gladly use the tools in hand derived from the cumulative body of theory to deal with complex systems, than to blame someone for something that i myself cant ever hope to have pinpoint accuracy about(its like a guy running a shop for 50 years, never doing any stock taking then blaming his staff for steeling cause he feels he should be richer, somehow). Hence, if it is all totally subjective then that argument works two ways, you cant just turn around and say "i feel we should be richer today, I feel we should be getting more for less, someone must be stealing". etc etc Good guys vs bad guys is not economics, and they dont mix.

Wed, 05/25/2011 - 18:39 | 1310707 Calculated_Risk
Calculated_Risk's picture

You are much wealthier now through higher standards of life, working conditions, health care, housing, food...



This is due to increased productivity. Not printing money.

Wed, 05/25/2011 - 19:25 | 1310870 scratch_and_sniff
scratch_and_sniff's picture

Oh right increased productivity, I see now. You know I forgot all about how much American goods should really be worth on the global market. Because if the fed had never tried to manage the American economy this last century you would be getting much more for you’re goods. And the rest of the world would gladly pay for your precious  labour and productivity. Get real. Any increased productivity was to supply increased demand, you benefited accordingly relative to what the market, in whatever era would pay. Your problem is that you want to brush with broad strokes with out learning how to hold a pencil.

Wed, 05/25/2011 - 20:43 | 1311147 FOC 1183
FOC 1183's picture

What he is saying is econometrically correct.  This is how the Fed, Citi, Goldman, etc. all account for this change.  It's not random fluff.  It's quantified economics.

Again, not trying to be an ass - just debating.  This IS the way they model it.

Wed, 05/25/2011 - 21:37 | 1311332 scratch_and_sniff
scratch_and_sniff's picture

When you have just agreed in principal and in spirit with what i said, its a funny kind of debate. I am aware of the product of labour as a wealth creator, what is ignored in favour of the knee-jerk broad strokes however is how that labour finds its way on to the global market, and how its real value is arbitrated and managed throughout the decades(you know, with the "quantified economics"). Where are these qualified economics, i want to hear them? Lets go? It seems they are the only things that will free you, but 99% of people here dont have a fucking clue about them! Im confused.

As Americans, you work no longer, no harder, get better holidays and working conditions, health care, rights(man im not going into a spiel, but you know the rest), along with all the other benefits of living in an advanced society, i just don’t see how else you can measure the outcome of your wealth, or measure what you think you deserve for your labour on the global market(tell me?) when there are children working 80hr wks for rice...maybe you just want to moan, maybe this site is just somewhere to go for people who think its just not fair. Maybe its not, but atleast know what you are really moaning aobut.

Wed, 05/25/2011 - 15:56 | 1310164 NoLongerABagHolder
NoLongerABagHolder's picture

Here is a little data mining reality for you:

n 1980, gold hit a peak of $850. In 1980, the minimum wage was $3.10 per hour. In order to afford one ounce of gold, a minimum wage worker would have to put in 274 hours of work ... just under seven weeks of labor to afford a shiny new coin.

How does that compare today with gold at $1510 per ounce? Well, with the minimum wage set at $7.25 per hour, the lowest paid worker would need to work only 209 hours.

24% less work for the minimum wage earner to buy an ounce of gold.

Back in 1980, a gallon of gas cost $1.40 at the peak. It would have taken the minimum wage worker 0.45 hours of labor to buy a gallon of gas so he could get to work. Today, at $3.50 per gallon, the minimum wage worker only needs to work 0.48 hours to get himself to the job. Bout the same even though gas prices are up more than 100%

Wed, 05/25/2011 - 16:02 | 1310175 akak
akak's picture

Fuck you.

You have just destroyed whatever trace of credibility you had left here, by taking gold at its short-term price peak in 1980 and trying to use that spike price as indicative of its general price thirty-odd years ago. Utter disingenuous crap.

Go back to troll school --- you have a LOT to learn about intelligent and honest argument.

Wed, 05/25/2011 - 16:03 | 1310181 NoLongerABagHolder
NoLongerABagHolder's picture

How you doin a cock?

I said it was data mining - but proves the point you can't just look at one small time and come to conclusions like you want to.

Get back to suckin that schlong you like to eat.

Wed, 05/25/2011 - 16:12 | 1310207 akak
akak's picture

Uh oh, puerile personal attacks!

Didn't they tell you in troll school that you are supposed to avoid doing that?

Cass is going to have some sharp words with you about this.

Wed, 05/25/2011 - 16:28 | 1310238 tarsubil
tarsubil's picture

I'll have to start referring to you as Tim "CF" Ayles. Wow, say hi to tom cruise and john travolta for us.

Wed, 05/25/2011 - 17:21 | 1310429 LawsofPhysics
LawsofPhysics's picture

You got to love it when a troll reveals himself.   

Wed, 05/25/2011 - 16:43 | 1310300 knowless
knowless's picture

yo, so just real quick

rent for a month 600, taxes 1/5th or more,

40h x 7.25 = 290

290x4 = 1160- 1/5(1160) = 928

928-600 = 328 FOR EVERYTHING ELSE BESIDES RENT for a month working full time.

how many fucking shiny coins you think most people at that wage level have? ill give you a hint, close to none unless you sell drugs on the side. how much debt would you reckon they have on top of all that?



Wed, 05/25/2011 - 17:10 | 1310383 XenoFrog
XenoFrog's picture

Take out taxes, dingbat.

Wed, 05/25/2011 - 16:18 | 1310222 Jean Valjean
Jean Valjean's picture

Actually you bring up a very valid point that should be fleshed out.  One thing I thing you are overlooking:

Innovation outpaces inflation and gives the illusion that "all's fair".  Let me use an example.  In 1963 you could buy a McDonalds hamburger for a dime.  In 1963 an average consumer earned 25 dimes an hour.  In 2011 a hamburger costs .80 and the average consumer earns 25 $.80 per hour.  All even right?  Not really because if the 1963 dime was saved it would be easily sold today for $2.70 or the equavalent of over 3 hamburgers.


Wed, 05/25/2011 - 19:52 | 1310967 Bicycle Repairman
Bicycle Repairman's picture

You have nailed it.  All of the value from innovation accrues to the bankers and not the people under the FED 'system'.

Thu, 05/26/2011 - 09:50 | 1312884 Bicycle Repairman
Bicycle Repairman's picture

You have nailed it.  All of the value from innovation accrues to the bankers and not the people under the FED 'system'.

Thu, 05/26/2011 - 09:50 | 1312885 Bicycle Repairman
Bicycle Repairman's picture

You have nailed it.  All of the value from innovation accrues to the bankers and not the people under the FED 'system'.

Thu, 05/26/2011 - 09:50 | 1312886 Bicycle Repairman
Bicycle Repairman's picture

You have nailed it.  All of the value from innovation accrues to the bankers and not the people under the FED 'system'.

Wed, 05/25/2011 - 17:19 | 1310376 Stuck on Zero
Stuck on Zero's picture

Have salaries kept up with prices?  A $5/hr salary 40 years ago meant about $4.80 in your pocket to spend.  A $18 salary today means about $10 to spend. 

Wed, 05/25/2011 - 15:46 | 1310132 That Peak Oil Guy
That Peak Oil Guy's picture

Wage increases lag inflation, especially in poor economic times.


Wed, 05/25/2011 - 15:52 | 1310145 LawsofPhysics
LawsofPhysics's picture

If ZH leaves stuff out, then you obviously don't know how to do math.  Do your really think we are going to let you get away with making such bold statements without showing any hard numbers?  Why don't you try to make your argument based on some REAL numbers such as minimum wage versus the price of gas OR better yet, the cost of an education.  Obviously if you are someone who has to work less today to buy the same quantity of a commodity you bought years ago, then you have advanced in status.  Perhaps not, but then let's look at the input cost for the business you built.

Come on give us some real numbers or STFU and get back to work on your graduate degree idiot.  Eventually (unless mommy and daddy left you set-up) you will have to live in the real world and Nature makes no promises regarding your survival.


You really are a cynic, just ask yourself one question;  how sustainable is all this?  Go ahead extrapolate your bullshit out a few more hundred years.  

Wed, 05/25/2011 - 15:56 | 1310168 NoLongerABagHolder
NoLongerABagHolder's picture

Read above for you request of hard numbers.....

Wed, 05/25/2011 - 16:26 | 1310241 Jean Valjean
Jean Valjean's picture

Please read my reply above, it uses approximately real numbers too and instructs you in what you are overlooking.  I agree bankers don't steal our future earnings because that is impossible.  What they steal is our SAVINGS and the INNOVATION OF OTHERS, which in a free market would be split between the innovator and the consumer.

Wed, 05/25/2011 - 17:57 | 1310569 mick
mick's picture

My first job in 1988, I made about £3 an hour. Plus commision because I could sell. But £3 an hour was basically minimum. Petrol was £1.72 a gallon. Say 30 minutes work. Now, minimum wage is £3.64 for teenagers and petrol's over £6 a gallon.. Meanwhile, the house I grew up in was worth maybe £250,000 then and would sell for over £1m today. Now tell me wages have kept up with inflation. You've been junked a million times because you're dead wrong, dummy.

Wed, 05/25/2011 - 15:56 | 1310158 MyKillK
MyKillK's picture

Using the official inflation numbers, wages have been stagnant for 35 years

Use real inflation figures and wages have declined significantly over the last 50 years

Wed, 05/25/2011 - 15:57 | 1310161 akak
akak's picture

Bagholder (and yes you are), you conveniently and pointedly ignore the very real theft of savings via currency debasement (so-called "inflation'), not to mention the impoverishment of retirees and those on fixed incomes as their savings and pensions inevitably lag behind that currency debasement. You also ignore the massive costs to society imposed by "inflation", both in attempts to circumvent it, and in the significant malinvestments made due to the distorted price signals attendant on it.

Nice job in trying to defend the indefensible, however, and in supporting the criminal and immoral agenda of your sociopathic overlords.

Wed, 05/25/2011 - 15:58 | 1310173 NoLongerABagHolder
NoLongerABagHolder's picture

I don't ignore anything you say. I am not saying it is good or bad - just that ZH is only presenting one side of the truth. Unfortunately, in a fiat regime, people who can not work for a wage must be able to invest in those who can, like stocks, otherwise they will fall behind, no question.

Wed, 05/25/2011 - 16:03 | 1310189 akak
akak's picture

I don't ignore anything you say. I am not saying it is good or bad

Yet you are implicitly arguing that currency debasement, and the stealth tax of "inflation", is NOT bad, and implicitly defending it, and the sociopathic agenda of the ruling elite who impose that agenda upon society.  You are contemptible.

Wed, 05/25/2011 - 16:09 | 1310194 NoLongerABagHolder
NoLongerABagHolder's picture

Deleted Comment

Wed, 05/25/2011 - 16:08 | 1310196 NoLongerABagHolder
NoLongerABagHolder's picture

No douchbag, just that the argument that prices are unaffordable or that we can afford 96% less from the dollar going down in value is not the full truth. It's just as bad to argue that without the idea of wages per hour as it is to argue that printing is good.

Wed, 05/25/2011 - 16:22 | 1310203 akak
akak's picture


I see no mention or inference that wages have not also risen --- but patently, they have not kept pace with the central-bankster-caused debasement of our currency.  And as another poster below points out, in a fair, honest, non-fiat-burdened economy, real wages should OUTPACE any rise in the price of commodities and goods, or more pointedly, remain stable as the overall price level and cost of living falls.

Wed, 05/25/2011 - 19:50 | 1310975 scratch_and_sniff
scratch_and_sniff's picture

Show me that wages have not kept pace with " central-bankster-caused debasement ", show me how "in a fair, honest, non-fiat-burdened economy, real wages should OUTPACE any rise in the price of commodities and goods, or more pointedly, remain stable as the overall price level and cost of living falls." All i am asking you to do is show me how you think we should be getting more for less as we go through life. All i am asking is that you show me. Without the histrionics and rhetoric, make me understand your statement with facts. Here is your chance to win someone over to your way of thinking, relish it. (there may even be a nobel prize in it for you)

Wed, 05/25/2011 - 20:55 | 1311195 akak
akak's picture

Show me how "in a fair, honest, non-fiat-burdened economy, real wages should OUTPACE any rise in the price of commodities and goods, or more pointedly, remain stable as the overall price level and cost of living falls."


One only has to examine the economic and monetary record of the USA in the period of around 1870 to World War I, when our economy was relative free and honest, particularly compared to that today, and our national monetary system was as honest and sound (but NOT perfect) as it has ever been, to see abundant evidence of my claims.  Real wages rose, and real prices fell throughout this period, seeing a dramatic rise in the standard of living of the average American.  And just imagine, somehow, miraculously, they did it all without fiat currency --- or bluetooths or iPads!

Wed, 05/25/2011 - 22:12 | 1311486 scratch_and_sniff
scratch_and_sniff's picture

1870 was pretty cool, yeah lets go back to 1870 and die at 28...standards of living rose because you were living in filth and shit - like a lot of the world presently is while you moan about ipads. Lets rewind globalisation and live on a dwindling planet where everyone constantly gets more for less, more of everything, we want more! And if we cant have more, we want it at 1870 prices!. Tell me, how much do you think American labour is worth? How much do you think you should be getting? More than what people are willing to pay? Tell me aint so?

Nice dream. You are having your handle yanked mate, take econ101 syllabus on your way out.

Wed, 05/25/2011 - 22:26 | 1311537 akak
akak's picture

I refuse to even try to rebut such specious, shallow and ignorant comments.

If Zerohedge had an "Ignore" feature, you would have just made my ignore list.

Wed, 05/25/2011 - 23:03 | 1311675 scratch_and_sniff
scratch_and_sniff's picture

Thought so...but tell me this before you go all "speak to the hand", can you actually see the bullshit doing cartwheels in your brain or do you need binoculars?

Thu, 05/26/2011 - 06:43 | 1312366 tarsubil
tarsubil's picture

You got the last word! Oh, wait... I guess I ruined that for you.

Thu, 05/26/2011 - 19:24 | 1314851 scratch_and_sniff
scratch_and_sniff's picture

I wont hold it against you, if thats what you are thinking.

Wed, 05/25/2011 - 16:27 | 1310234 Imminent Collapse
Imminent Collapse's picture

Hey Bagman, your analysis breaks down when the people don't have jobs.  Missed that little piece of the puzzle, asswipe.

Wed, 05/25/2011 - 16:45 | 1310287 tmosley
tmosley's picture

CPI shows prices as being up 2295% since 1913. ( shows prices being up 8032% since 1913. (

The average wage, has gone from some $750/year to $52,000/year (although median would be more appropriate, I can't find a median wage for 1913).  This is up 6833% since the 1910's. ( --kind of crappy, I know, feel free to find a better source).

So sure, you are winning when you use a bunch of accounting gimmicks, but the reality is that we are WORSE OFF than we were back then, financially, by about 17%.  And that is with the huge increases in efficiency that have come about as a result of industrialization, computerization, etc.

Wed, 05/25/2011 - 17:00 | 1310366 fuu
fuu's picture

IMHO those efficiencies should have decreased the work load of each worker, allowed a better wage for each worker, and reduced consumer costs for things.


Instead costs go up, wages stagnate, workers work more, taxes increase, and executive salaries increase to 300 times entry level wages in their companies.

Wed, 05/25/2011 - 17:22 | 1310433 tmosley
tmosley's picture


Wed, 05/25/2011 - 17:33 | 1310490 LawsofPhysics
LawsofPhysics's picture

Looks like ZH has a new troll.  The feds must be hiring.

Wed, 05/25/2011 - 17:37 | 1310507 akak
akak's picture

Indeed.  Only this one is just another sockpuppet that had lain dormant for over a year, until receiving the activation signal from Cass Sunstein.

"Remember, Dmitri, miles to go before you sleep ...."

Wed, 05/25/2011 - 16:14 | 1310209 tarsubil
tarsubil's picture

Hi Tim "La Douche" Ayles,

Thanks for chiming in Mr. Oligarch apologist and college flunky (yes, I know you flunked out of college! boogity boogity boo! no big deal, I just think it is funny) who believes in modern money theory. First, you might notice that the you argue the amount of time of work needed to pay for fuel has gone down and then you cite articles which do not involve both. What you are relying on is that if we have any sort of progress, the amount of work needed to pay for food and fuel should always go down. The fact is the oligarchs through taxation and money printing have skimmed excess wealth off the top and left enough scraps for us to continue improving. So you lie, you are a liar sir!, and mislead people into thinking that since there was a little bit of progress in certain areas over the last 100 years, the oligarchs can continue raping the poor and middle class with inflation and taxation in an unlimited matter and things will be fine. Even in the dark ages where the clergy and nobility were seriously raping the serfs, there was progress. The idea that makes the raping okay is just evil. You are an evil lying SOB.

Wed, 05/25/2011 - 16:17 | 1310217 akak
akak's picture

Good point, Tarsubil!

Yes, this contemptible shill for the power elite "Bagholder" is pretty transparent in his disingenuous agenda-peddling and agitprop, isn't he?

Wed, 05/25/2011 - 16:30 | 1310245 tarsubil
tarsubil's picture

Yes, Tim Ayles is a total CF (as in "suprise c... f..!" from team america: world police).

Wed, 05/25/2011 - 16:29 | 1310250 NoLongerABagHolder
NoLongerABagHolder's picture

Tim no, but he gets it and turned me on to MMT. I was referencing his article. You should spend more time trying to understand it. The best guy I know who gets it is Cullen Roche over at for those so inclined to get the bag off their eyes.


Wed, 05/25/2011 - 16:48 | 1310317 akak
akak's picture

More apologies for big-government statism and control of the economy and money supply.

No thanks --- one Paul Krugman is more than enough.

Wed, 05/25/2011 - 17:21 | 1310453 LawsofPhysics
LawsofPhysics's picture

Yeah, another phucknut working on his masters or Ph.D. in economics. Can't wait to take his money when he gets to the real world.  

Wed, 05/25/2011 - 21:29 | 1311312 tarsubil
tarsubil's picture

I read Timmy's article and debated with him over this very same thing. You're the same person. You had time to waste on that stupid thread spouting your BS all day and now you are here too. The fact that you say exactly the same things I guess shouldn't be a give away. Whatever CF.

Wed, 05/25/2011 - 16:29 | 1310252 Mr. Sheeple
Mr. Sheeple's picture

While your point about the chart has some validity, I think were more worried about whats happening right now. Most people are making LESS money than they were in 2008. And thats before you factor in inflation.

Wed, 05/25/2011 - 16:30 | 1310257 NoLongerABagHolder
NoLongerABagHolder's picture

I agree- but its also dangerous to say it will stay this way forever. Prices are always more volatile. I could have made the case in 2008 and 2009 that prices were way down. Prices will be down again against wages sometime in most of our lives, will we make the case then that things are great?

Wed, 05/25/2011 - 17:26 | 1310460 LawsofPhysics
LawsofPhysics's picture

Yeah, once we starve or kill off a few billion, then things will be much better.  Let me guess fucknut, earthquakes are good for GDP, right?  Troll away...

Wed, 05/25/2011 - 16:57 | 1310357 baby_BLYTHE
Wed, 05/25/2011 - 16:45 | 1310310 Tacos Rule
Tacos Rule's picture

Little reality check for you: "This data is so skewed with an agenda" this disproves your own point, all data is skewed with agenda and can be made to say almost anything you want.


It takes me a few less hours of work to buy a washing machine?  Whoopty doo!  What about the excess energy I have to pay for on new inventions like computers and cell phones, what about manditory liability insurance and soon to be manditory health insurance, etc etc.  This work is incomplete, please add more variables to represent reality and then your work may be considered... oh wait you didn't even do that work. 



Wed, 05/25/2011 - 20:06 | 1311029 scratch_and_sniff
scratch_and_sniff's picture

Why dont you add more variables and prove your counter argument? Oh, right you cant, sorry, because life is not as easy as good guys and bad guys...its a pain in the ass when you think about it. Or hold on, maybe you have been emotionally programmed to think in terms of good guys and bad guys? yikes! Hide motherfucker! Hide!

Wed, 05/25/2011 - 16:49 | 1310334 Auricle of Omaha
Auricle of Omaha's picture

Ipads are cheaper... and tasty.


Wed, 05/25/2011 - 16:53 | 1310335 DTCC 1999
DTCC 1999's picture
So 14 people junked NoLongerABagHolder. You are close minded and discouraging of good discussion. FYI, if you look at the subject as % of expenditures spent on food, we are low historically. "So that must mean you like the Fed DTCC!" Not the case - I just try to keep my head out of the cavernous pit I call an ass. Time to clean house here - the forum is in shambles.  There is a reason all my favorite old posters stopped.
Wed, 05/25/2011 - 17:20 | 1310418 akak
akak's picture

His posts were rightfully junked because his arguments were specious, disingenuous and intellectually insulting.  Not to mention implicitly supportive of a fraudulent, extortionary fiat currency regime and its attendant currency debasement that punishes savers, pensioners and those least able to suffer its insidious effects.  He was also junked for his implicit defense of the manipulative and sociopathic power elite in control of that perverted monetary regime and that currency debasement.

There is a vast difference between being "close-minded", and being amorally and cowardly tolerant of those peddling dishonest, disingenuous half-truths and misleading arguments.

Wed, 05/25/2011 - 20:08 | 1311034 scratch_and_sniff
scratch_and_sniff's picture

fucking bullshiter.

Wed, 05/25/2011 - 21:42 | 1311372 tarsubil
tarsubil's picture

My guess is that most of those 14 recognized the very disingenuous nature of his arguments. You can look at the debate after Timmy's article and read the exact same language he is putting here. Then he lies that he isn't him. He's a lowly scumbag. Boo Frickety Hoo about junks. Maybe you should read the post where he suddenly is obsessed with a certain part of the male anatomy. He's a lying troll AAPL pushing loser.

Wed, 05/25/2011 - 16:53 | 1310336 DTCC 1999
DTCC 1999's picture
Wed, 05/25/2011 - 16:51 | 1310337 DTCC 1999
DTCC 1999's picture
Wed, 05/25/2011 - 16:51 | 1310338 DTCC 1999
DTCC 1999's picture
Wed, 05/25/2011 - 17:04 | 1310353 bbq on whitehou...
bbq on whitehouse lawn's picture

Can you produce bread, milk or fuel for your car? Because i knew Adam Smith couldn't.

Labor needs to price; the survival of labor.

But its more then that as you well know. This piece is valuable if only in showing history and the value objects through time.

If A is priced highly or lowly; then tis price as such levels in time allow you to feel better or worse?

These prices are how your ancestors valued goods and services at that time. Now you may not value; Bread, milk and transport as highly or need to do so today.  Such markers in time are still have value.

It shows how: high or low; items of value can raise, or fall.

Its still valuable even if you dont see its merit.

For fun track the price of beer through time. :P

Wed, 05/25/2011 - 17:28 | 1310463 LawsofPhysics
LawsofPhysics's picture

"Labor needs to price; the survival of labor."  Yep, precisely why robots will run everything soon enough.

Wed, 05/25/2011 - 17:13 | 1310355 ebworthen
ebworthen's picture


And what you don't see in those charts or analysis is the post WWII mechanization of agriculture, pesticides, fertilizers - all completely dependent upon OIL - not to mention genetically engineered monoculture crops on less and less acreage.

All of the applicances you list do not have life expectancies shown.  Most modern versions are pieces of crap that have a quarter the life expectancy of an equivalent appliance of the 1950's (besides being made in China for the most part).

Parasitization of manufacturing, plastic crap built with planned obsolescence, and a house of cards food chain built on oil, high tech labs, and a 3 days supply in most cities does not mean our dollar or our lives are worth more than they were 60-100 years ago.


Wed, 05/25/2011 - 17:29 | 1310474 LawsofPhysics
LawsofPhysics's picture

You also don't see the 60 million plus DEATHS associated with WWII.  Death and destruction are good for the GDP, don't cha know.

Wed, 05/25/2011 - 17:05 | 1310377 collegepunk
collegepunk's picture

It still hurts savers and helps debtors.  That's not the incentive system I would want to set up.

Wed, 05/25/2011 - 18:42 | 1310720 morkov
morkov's picture

so what is this? it was "normal" while all countries were bying it and got sucked in the drain and now it's every castle on its own donkeys? was Marx right about something?

Wed, 05/25/2011 - 15:12 | 1309969 Fidel Sarcastro
Fidel Sarcastro's picture

Ben's bumper sticker... The Fed: Making rich people richer since 1913.

Wed, 05/25/2011 - 16:49 | 1310333 Hooter Shaker
Hooter Shaker's picture

US FED.....The rest of you unfed.

Wed, 05/25/2011 - 15:13 | 1309972 SDRII
SDRII's picture

This mkt is a fuc%ing tragicomedy

Wed, 05/25/2011 - 15:14 | 1309977 Careless Whisper
Careless Whisper's picture

"The Fed's Logo"


doesn't compare to this:


Wed, 05/25/2011 - 15:26 | 1310042 Mae Kadoodie
Mae Kadoodie's picture

Tyler, that's considered a tag line.  But I like it.

Wed, 05/25/2011 - 15:27 | 1310047 Cash_is_Trash
Cash_is_Trash's picture

I like it's totalitarian allure.

Wed, 05/25/2011 - 16:19 | 1310225 Careless Whisper
Wed, 05/25/2011 - 15:20 | 1309988 carbonmutant
carbonmutant's picture

US FED: Blowing Bubbles since 1913

Wed, 05/25/2011 - 16:52 | 1310321 Ryman1075
Ryman1075's picture


Wed, 05/25/2011 - 15:22 | 1309999 legal eagle
legal eagle's picture

My parents had 7 children and my father was able to provide for us, with my mother staying at home, on less than $35,000 a year during the 1970s-80s.  How much would it take today? 

Wed, 05/25/2011 - 15:23 | 1310024 LRC Fan
LRC Fan's picture

It would still take less than 35 g's when you factor in all the food stamps, unemployment, earned income tax credit, child tax credit, and welfare checks.  Either that, or $35,000 face value of junk silver would do the trick. 

Wed, 05/25/2011 - 15:42 | 1310095 LawsofPhysics
LawsofPhysics's picture

Yep, the better question is;  how sustainable is it?

Wed, 05/25/2011 - 21:13 | 1311269 downwiththebanks
downwiththebanks's picture

Yeah, the masses of people are really living high on the hog, you delusional lackey.  

It's almost as good in the REAL WORLD as it is in the banker-gangster world, with their unlimited access to the welfare spigot for drugs, hookers and gambling all day every day.

Wed, 05/25/2011 - 15:27 | 1310029 catch edge ghost
catch edge ghost's picture

Isn't it supposed to take everything?

Wed, 05/25/2011 - 15:27 | 1310030 A Nanny Moose
A Nanny Moose's picture

Is selling kids an option?

Wed, 05/25/2011 - 15:45 | 1310123 Thomas
Thomas's picture


Wed, 05/25/2011 - 15:50 | 1310134 Caviar Emptor
Caviar Emptor's picture

Part of the answer: feeding the kids alone would exceed income. After tax at today's rates, that would mean he would have less than $50 a week per child (2 adults also eat). 

Wed, 05/25/2011 - 15:23 | 1310003 JW n FL
JW n FL's picture Correlation between (JP Morgans) Food Stamp Usage and Wealth Effect Read what the Banks think of You working class Slobs!


Karl Rove Builds Shadow Gov / Republican Party with Plutocracy $$$


The Vatican comparing hacker philosophy to Christianity: Holy War Against Corporations, “We the People”!



Wed, 05/25/2011 - 15:23 | 1310004 Cognitive Dissonance
Cognitive Dissonance's picture

That bottom chart looks like an Olympic downhill course on steroids. Watch out for that ice around 2011. Whoops, going supersonic.

Wed, 05/25/2011 - 15:21 | 1310010 legal eagle
legal eagle's picture

I think the term is black ice

Wed, 05/25/2011 - 15:34 | 1310076 Bay of Pigs
Bay of Pigs's picture

Could someone forward that chart to Spalding?

He has trouble with this subject.

Wed, 05/25/2011 - 16:08 | 1310198 Cognitive Dissonance
Cognitive Dissonance's picture

Ironically the Fed considers that bottom chart to be a roaring success. Nice steady devaluation with no really sharp turns to upset the peasants. In fact the programming of the peasant brain is mostly complete with many thinking 2% - 3% inflation is natural, normal and even desirable.

It's only after I show my clients what 20 years of 2.5% inflation compounded does to the buying power of $100,000 that suddenly they sit up and listen. But then they leave my office and are immersed once again into the droning MSM.

Calgon, take me away.

Wed, 05/25/2011 - 17:29 | 1310472 fuu
fuu's picture

Well if it is any consolation you helped some of us over the hump a few years back.

Wed, 05/25/2011 - 15:24 | 1310006 RockyRacoon
RockyRacoon's picture

Looks like they are tightening up on the 401k balances as well:

Nasty tax surprise on retirement loans

It's bad enough to lose your job during these tough times. But folks who are unemployed get another nasty shock. Those 401(k) loans they took in better times suddenly become due and payable. If not paid back, taxes and penalties result.
Read more: Nasty tax surprise on retirement loans.

Can't let that source of funds get away since Sam will need it to further fund the bailouts.

Wed, 05/25/2011 - 15:31 | 1310050 A Nanny Moose
A Nanny Moose's picture

It's not a tax. It's a Savings Enhancement bill. Even says so in the name.

Oh, and that's Uncle Scam to you plebes.

Wed, 05/25/2011 - 15:24 | 1310009 LRC Fan
LRC Fan's picture

What the fuck are you talking about?  Without the Fed we would all lose our jobs.  After all, with no central bank how can you have a currency that people can trust?  You expect people to weigh and verify all your silver and gold coins?  LOL, that really is too funny.  Idiots. 

/sarc, I think. 

Wed, 05/25/2011 - 15:35 | 1310065 Bagbalm
Bagbalm's picture

Verify by biting it...Sarc I think

Thu, 05/26/2011 - 02:55 | 1312209 StychoKiller
StychoKiller's picture

Pretty sure this has been done before:

The Bernank:

Son, we live in a world that has printers, and those printers have to be guarded by men with guns. Who's gonna do it? You? Lloyd Blankfein? I have a greater responsibility than you could possibly fathom. You weep for Santiago, and you curse the Banksters.  You have that luxury. You have the luxury of not knowing what I know. That Santiago's death, while tragic, probably saved lives. And my existence, while grotesque and incomprehensible to you, saves lives. You don't want the truth because deep down in places you don't talk about at parties, you want me on that printer, you need me on that printer. We use words like interest, easing, bubble. We use these words as the backbone of a life spent debasing something. You use them as a punchline. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the waves of the very liquidity that I provide, and then questions the manner in which I provide it. I would rather you just said thank you, and went on your way, Otherwise, I suggest you pick up an ink cartridge, and man a printer. Either way, I don't give a damn what you think you are entitled to.

Wed, 05/25/2011 - 15:24 | 1310014 tmosley
tmosley's picture

Can't go to zero on a log scale, bitchez.

I wish you could, because excel always pesters me to let me know about that, since that is how we express microbial inhibition in our business.

Wed, 05/25/2011 - 15:30 | 1310046 Tyler Durden
Tyler Durden's picture

Drupal confuses <sarcasm> for <BTFD>

Wed, 05/25/2011 - 15:48 | 1310141 tmosley
tmosley's picture

Happily, <!sarcasm> and <STFD> (sell the fucking dip) are the same function.

Wed, 05/25/2011 - 18:57 | 1310787 traderjoe
traderjoe's picture

I contributed to the War on Silver by buying every dip below $35. F*ck you bankers - thanks for the price suppression.

Wed, 05/25/2011 - 15:26 | 1310025 akak
akak's picture

Fiat currency and world wars funded by the same: the two greatest crimes in human history, both brought to you courtesy of the inherently psychopathic institution of centralized banking.

Wed, 05/25/2011 - 15:23 | 1310026 Gubbmint Cheese
Gubbmint Cheese's picture

sounds so much more chipper when translated to latin:

Condita Is Congelo Vesco Vestri Prosapia Pro 98 Annus Quod Duco

Wed, 05/25/2011 - 15:28 | 1310036 akak
akak's picture

I think your use of "Congelo" is inaccurate here --- you need the adverb in this context, not the adjective.

Wed, 05/25/2011 - 15:42 | 1310099 Gubbmint Cheese
Gubbmint Cheese's picture



Wed, 05/25/2011 - 15:24 | 1310032 Northeaster
Northeaster's picture

A little OT, but a detail that caught my eye, as I'm sure most here on ZH will catch:


Wed, 05/25/2011 - 15:39 | 1310086 Northeaster
Northeaster's picture

For the lazy:

"resulted in the seizure of more than $3.3 million, seven kilograms of gold bars worth $364,000, 80 pounds of marijuana, four weapons, and several vehicles during a nine-month investigation."

Even the criminals "get it" now.

Wed, 05/25/2011 - 17:41 | 1310513 LawsofPhysics
LawsofPhysics's picture

An underground economy has been building for quite some time now.  One has to wonder what happens when black market economies dwarf the "legal" ones.  Paging Russia, could you help us out with that?

Wed, 05/25/2011 - 15:27 | 1310033 Mercury
Mercury's picture

"Making It Harder To Feed Your Family For 98 Years And Counting"

...except that food in the U.S. is still cheaper now than it ever has been anywhere in the world ever and Americans represent the fattest civilization the world has ever seen.

For now at least.

Wed, 05/25/2011 - 15:31 | 1310049 Gully Foyle
Gully Foyle's picture


"Americans represent the fattest civilization the world has ever seen."

Uh probably not. Polynesians dude, Polynesians.

Wed, 05/25/2011 - 15:39 | 1310082 A Nanny Moose
A Nanny Moose's picture

When it comes to fighting for food in the streets, Imy money is on the 6'2' 350 lb Samoan over the 400 lb hoveround bound social security recipient who was trained in martial arts by WiiFit

Wed, 05/25/2011 - 16:56 | 1310350 Ryman1075
Ryman1075's picture


Wed, 05/25/2011 - 15:49 | 1310088 Mercury
Mercury's picture

...because a substantial portion of their diet is American food most likely.  Traditional Polynesian cuisine coated in (very affordable!) poly-saturated sugary goo...

Wed, 05/25/2011 - 15:28 | 1310037 Gully Foyle
Gully Foyle's picture

Keyes: By your actions, sir, you are risking the future of the human race!
General Sline: To guarantee the American way of life, I'm willing to take that risk.

Wed, 05/25/2011 - 15:25 | 1310039 RunningMan
RunningMan's picture

Bought more silver eagles. Dollar is trash. Was in Europe and stunned by how strong the euro is relative to the dollar...

Wed, 05/25/2011 - 15:29 | 1310040 Badabing
Badabing's picture

I'm Fed up with this shit

Wed, 05/25/2011 - 15:26 | 1310045 SumSUN
SumSUN's picture

Tyler, wouldn't "slogan" have been a better noun than "logo" in your sentance?

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