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Ratigan And Fleckenstein Explain The Fed's Role In Recent Food Price Ignited Revolutions

Tyler Durden's picture


For over a year now, Zero Hedge has been predicting that in its foolhardy attempt of "inflation or bust", the Fed's actions would sooner or later lead to mass rioting and possible revolutions as a result of surging and out of control food prices (which are just the peak of the alternative investment pyramid - yes, stunningly free money can go into other things besides stocks). There have been those who have claimed that deflation is still a far greater force, despite that the all important shadow banking system made a positive inflection point in ending deleveraging in Q3 (and on March 10 we will know whether the Q3 strength persisted into Q4) as was discussed previously, and today's first time in over two years increase in revolving credit merely confirms this view. Alas, to all who believe that deflation or deleveraging is a greater threat: you have our sympathies, as fundamentally your are correct, and were the business cycle have the benefit of playing out in normal course, all the world's banks would become insolvent and yes, deflation would be rampaging. The problem is that these same people do not realize that to Bernanke (whom we have referred Genocide Ben for precisely this reason) there is no other alternative, and inflation must be achieved no matter how terrible the social cost, or the damage to the monetary system. Regardless, the actions in North Africa are just the start. Commodities will run up far higher, and discontent will sooner or later reach to Asia, and possibly to countries which have nuclear arsenals at their disposal. What happens then is anyone guess. Yet for anyone who is still confused about the ultimate Fed agenda, Dylan Ratigan and Bill Fleckenstein sat down late last week to make it so clear that virtually anyone and everyone can understand what the Bernanke endgame is.

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Mon, 02/07/2011 - 18:25 | 941617 ragedmaximus
ragedmaximus's picture

 The dollar menus are all now the 2 dollar menus

Mon, 02/07/2011 - 18:32 | 941636 TJW
TJW's picture

Not at my local restaurants. They just serve half as much.

Mon, 02/07/2011 - 19:10 | 941734 bunkermeatheadp...
bunkermeatheadprogeny's picture

Strippers only show one tit for a dollar now.

Mon, 02/07/2011 - 19:15 | 941747 SilverIsKing
SilverIsKing's picture

Make sure she's a DDD to get the biggest bang for the buck.

Mon, 02/07/2011 - 23:10 | 942151 natty light
natty light's picture

Hedonic adjustment.

Tue, 02/08/2011 - 01:16 | 942290 natty light
natty light's picture

Hedonic adjustment.

Mon, 02/07/2011 - 22:36 | 942103 Henry Chinaski
Henry Chinaski's picture

If you've seen one...

you've seen...


Mon, 02/07/2011 - 18:55 | 941700 Pladizow
Pladizow's picture

Mr. Fleckinstein seemed some what more reserved than when on KWN and elsewhere.

Mon, 02/07/2011 - 20:22 | 941918 Thomas
Thomas's picture

Speaking on camera and by telephone are two very different beasts, especially when you know that you are gonna get only a couple of minutes at most. Bill does not thrive with the sound bites (nor does Tice). Save those for Pento and Schiff.

Mon, 02/07/2011 - 21:02 | 941991 I think I need ...
I think I need to buy a gun's picture

schiff and pento ARE NOT ALLOWED to say what is coming....the government is all over their aZZes and Fleckenstein too on everyday TV is told what he can't say so he had to think about it.


If you want to know what can't be said on TV go over to the FOFOA blog.

Mon, 02/07/2011 - 22:27 | 942097 Rusty Shorts
Rusty Shorts's picture

Grow some Balls and create your own TV !!!


Mon, 02/07/2011 - 22:56 | 942100 Rusty Shorts
Tue, 02/08/2011 - 19:43 | 944628 Buck Johnson
Buck Johnson's picture

I believe you are correct.  For one I haven't seen Schiff on CNBC for awhile now and it may be that they have been warned to keep their mouths shut.  Fleckenstein comes close but as you said he may have been told how far he could go.

Mon, 02/07/2011 - 19:11 | 941737 gmrpeabody
gmrpeabody's picture

Dylan Ratigan..., still fighting the good fight!

Here's to you, Dylan.

Mon, 02/07/2011 - 19:48 | 941800 ZerOhead
ZerOhead's picture


If you place a frog into a pot of hot water it will jump out

If you place a frog into a pot of cold water and slowly heat it up you can boil the frog alive

Time to quickly heat the water to BOIL to help our revolutionary friends out!


Project ZerO

A call to all ZH'ers, Investment bankers, Hedge funds and others to join together to do God's Work and free the people of the world from Obama and Hillary's Dictato... errr... Autocrats!

Buy rice, buy wheat, buy corn and lever the shit out of your trades to spike the crap out of global food prices. The Algo's and the unwashed masses will assuredly do the rest.

(An extract from... How to Free the World for Fun and Profit... by Bill D Kat :)

Mon, 02/07/2011 - 19:52 | 941827 Michael
Michael's picture

They just told the story of Khaled Said on CNN, and followed up with another story with the video of this Egyptian man being shot.

I re-uploaded it 2 days ago.

We are all Khaled Said Murder at 2:22

Mon, 02/07/2011 - 20:19 | 941914 ZerOhead
ZerOhead's picture

It made me ill just watching it.

People killing people is never the answer.

Unless they just won't leave..... :)


Mon, 02/07/2011 - 21:00 | 941988 Clockwork Orange
Clockwork Orange's picture

Another notch for Banana Ben

Mon, 02/07/2011 - 23:28 | 942175 Miles Kendig
Miles Kendig's picture

Nice course charting

Tue, 02/08/2011 - 08:16 | 942461 Bobbyrib
Bobbyrib's picture

Junked for partisanship... To act like there was no such thing as debt or speculation when Bush was around is a joke. $150 barrels of oil anyone?

Yes, the current administration should take some of the blame for the inflation (spending and reappointing the douche), but speculation was not curtailed under Bush until oil hit $150 a barrel. Also the national debt was doubled uder Bush's wash and at that point we were left with the fools in Washington deciding monetizing the debt was the only way out (the debt was unpayable then and now there is absolutely no shot at paying it).

We need better leadership from a third party.

Tue, 02/08/2011 - 14:33 | 943520 Absinthe Minded
Absinthe Minded's picture

The sheeple won't vote for a third party candidate, they're too stupid. Besides Ron Paul isn't pretty enough for the masses. Probably doesn't even use a teleprompter.

Mon, 02/07/2011 - 22:15 | 942014 slewie the pi-rat
slewie the pi-rat's picture

one good dylan deserves another.  waybaaak, mr. peabody?  here's dylan showing up @ the newport folk festival w/ a bunch of Fenders!  the folk singer fans went ape-shit.  even pete seeger got upset.  arlo probably had to dose him!

my best guess is that bob liked the ventures and just said: screw it!  that looks like FUN!  i'm in!  the "folks" were protecting their children from his music, b/c he wasn't unplugged!  this is where we live... the folks who left are now in charge of everything!  they own us!

YouTube - Bob Dylan - Live at the Newport Folk Festival

ok. this video is propaganda. 

good thing if they just keep monetizzzing we can never have deflation. wanna see what deflation is?  like the last time they they wiped out 30% of the the paper?  just stay invested.  don't miss it. again.  oh, i forgot.  can't happen here, b/c batmanke went to college and learned about the depression and how to fix it if it ever happened again!

people make fortunes fading my calls!  batmanke has my sympathy (comes after shit) b/c the congress doesn't have the focus and resolve to get the budget under control...b/c the FED gave away the Treasury, and the congo will never catch up...b/c the FEF hasta keep printing because the hanky panky and the doe-eyed pelosi gave the Treasury to the banksterz, because the government didn't do it's job, b/c the banksters and ins. co's didn't like glass-steagall, so the administration repealed it so the sec, always one of the fastest agencies on the planet, spent 8 years trying to figure out how to deal with a change, and NOBODY saw this coming, how could they?  why can't people figure out what to DO?  what's so complicated, here?  greenspan was the one who had never studied the depression!  understand?  the Justice Dept. is so fast to respond that they'll come online for the finale as soon as they realize they are no longer working for Bush, b/c Holder's in ok, the congress vetted him, so justice will be served.  to us.  while we're sleeping.  up the ass.

now didya see the bagmen?  PACS, BiCHeS. QE. rinse, repeat, rinse, repeat, rinse, repeat. and so on...

thx, mr peabody!  pacs?  pax.

here's something more cogent:

YouTube - Commander Cody with Jerry Garcia - There's a Riot

fade that!

attica (NY) went up in flames in 71.  this is the McAlester in oklahoma, the "Big Mac", prison nation.  can you imagine what a burger from mickey d's would be worth in prison? 

Justice 4 Leftoverz!

almost forgot.  short Q to think about:  when do you think "they" will start to audit the FED?  REAlly.  if i were a gambling man, i'd say right near the end of randy's 2nd term................................................................................................................



Mon, 02/07/2011 - 22:25 | 942084 hangemhigh
hangemhigh's picture

TO: slewie the pi-rat
on Mon, 02/07/2011 - 21:05

waybaaak machine , mr. peabody? 

before you can ride the way back machine, and get inside the tube on that shore break, dogg, you got to pack another bowl.

don't think the joad's would mind.....that's where the grape's of wrath are stored....

and.....oh yeah...DAC got the monkey hammer boom boom, too.....

Mon, 02/07/2011 - 22:52 | 942110 slewie the pi-rat
slewie the pi-rat's picture

lol.  hi HH.  how was i to know there was a party goin on?  i'm a luddite.  annette and i usta party to this mouseketeer music.  glad you got converted!  along w/ 'spin' &...oh, if ya play it backwards, it sounds like the beatles!

YouTube - Bobby Darin-Splish Splash

hope you had a fun weekend, HH.  i can take a hint.  i'm about ready to go classical!  to you know that bach was able to encode genetic information and state secrets in music?  here's the link: 

Gödel , Escher , Bach - Wikipedia, the free encyclopedia


Mon, 02/07/2011 - 23:01 | 942126 hangemhigh
hangemhigh's picture

"annette and i usta party to this mouseketeer music.  glad you got converted!  along w/ 'spin' &.."

dude, that is so far back moose and squirrrel might need a dose of sister ray and mr peabody an atoms for peace button..................

Mon, 02/07/2011 - 23:13 | 942149 hangemhigh
hangemhigh's picture

"do you know that bach was able to encode genetic information and state secrets in music?  here's the link: "

yo, slewie, lotta time and space out there...most folks will take this way too literally and won't understand the rarified ether that made this party music "A long time ago, in a galaxy far far away",

thank god things change. 

coming to you straight from the parrots beak........

Mon, 02/07/2011 - 23:16 | 942156 Rusty Shorts
Rusty Shorts's picture

LMAO slewie, don't stop.

WTF, is that Sammy Hagar backing up the Grateful Dead??



Mon, 02/07/2011 - 23:47 | 942178 slewie the pi-rat
slewie the pi-rat's picture



maybe.  i can't tell who's backing up into what, here...

i think cherry garcia is the only previously live person on the stage.  first, it takes him 5 sec to realize the commander is starting the song;  then he tees off in the wrong key!  sammy almost doesn't survive.  elvis really holds the whole thing together w/the acoustic, doncha think?  obviously this is a night at the improv.  garcia figured they's be playing it in C#, probably!  phil l. never let him rest!

here's elvis costello addressing our theme of the month:

YouTube - Elvis Costello - Waiting For The End Of The World

somebody revive mr peabody, pls.


Tue, 02/08/2011 - 00:27 | 942210 Rusty Shorts
Rusty Shorts's picture

It all goes back into the box, yet still, we live.

 -- yet still, no one cares.

Tue, 02/08/2011 - 00:59 | 942239 slewie the pi-rat
slewie the pi-rat's picture


RS, is that picture from Burning Man?    maybe that's what dylan was singin abt...  chippin away.  you guys take care.  ty HH  epic, indeed.  hmmm....peabody, can you reverse that puppy?  i wanna go see cartman in outer space!


ferroshorty:  i junked you by mistake!  never junked anybody b4.  not as much fun as laser tag! 

Tue, 02/08/2011 - 01:43 | 942311 Rusty Shorts
Rusty Shorts's picture

I junked you 27 times, by mistake. I meant to junk you 57 times.

Mon, 02/07/2011 - 23:16 | 942159 slewie the pi-rat
slewie the pi-rat's picture

that's why i need peabody!

ifya don't like the link, HH,  pls forward to the crypt for burial.

didya find those balls yet?  i prefer da blonde myself... how's business?  those pallets are everywhere, by now,i'll bet!  can you help to move a statue?  strictly charitable work.  i think i'll go try a few games of chance tomorrow.  who was you favorite in the mickey mouse club?  you will answer, i'm sure... Hahaha. i can tell you've still got yer ears...  nice.  do you like what steinbeck did with his AK stuff?

later, g8r.

Mon, 02/07/2011 - 23:54 | 942176 hangemhigh
hangemhigh's picture

"didya find those balls yet?  i prefer da blonde myself... how's business?  those pallets are everywhere, by now,i'll bet! "

slewie, that is an absolute scream, my congragulations to you, sir, for having a cosmic sense of humor that transcends both time and space...ooohhhh.....the horror of it all....

Tue, 02/08/2011 - 00:07 | 942225 slewie the pi-rat
slewie the pi-rat's picture


now, about that mouseketeer, HH. if it's a guy, that's ok. 

here's ma main boy, right about the time he was helping mayor bloomberg keep the streets of manhattan nice and sanitary:

YouTube - Boy George - Karma Chameleon (Live 12/06)

Mon, 02/07/2011 - 21:24 | 942017 Id fight Gandhi
Id fight Gandhi's picture

Just pay cash and tip less. Not my problem they work on tips keep raising prices.

Mon, 02/07/2011 - 22:56 | 942128 mogul rider
mogul rider's picture

The dollar stores are now the Cinco stores

Mucho Gusto!

Mon, 02/07/2011 - 18:28 | 941623 Obaminator
Obaminator's picture


Mon, 02/07/2011 - 18:29 | 941625 gunsmoke011
gunsmoke011's picture

But Ben said that the Egyptians pay for their food in Gineih - so the Fed's easy money and flood of dollars has nothing to do with the price of food in Egypt. Was he not being honest with us?

Mon, 02/07/2011 - 19:39 | 941794 Trifecta Man
Trifecta Man's picture

Where do you think wheat and corn come from?  Siberia?

Mon, 02/07/2011 - 18:30 | 941632 redpill
redpill's picture

"and possible to some countries which have nuclear arsenal at their disposal"

Widespread unrest (there already has been plenty of localized protesting) in Pakistan could ignite at any moment.

Mon, 02/07/2011 - 18:34 | 941641 herman55
herman55's picture

I copied and pasted the following post at least 200 times in the last 3 weeks. Pay attention to the language on Egypt. Nothing will trigger social upheaval like food price increases in the 3rd world.


There is no, repeat no, food shortage on the planet today. Sort of… Using the United Nations suggested daily calorie intake there is more than sufficient foodstuffs produced annually, globally. Period. Now then, the question is how you use them....for example, if you wanted to bring the daily calorie level in both China and India up to the U.N. level it would take an additional, not total but additional, 31 million tons of foodstuffs. To put that in perspective the U. S. ethanol fraud consumed 165 million tons of corn during 2010. China has 2.3 trillion dollars in Treasuries but chooses not to expend it on foodstuffs for its own population. India was a net exporter of wheat in 2010.....I had the opportunity to have dinner with the Chairman of one of the largest commodity/food processors in the world over the holidays....there is no food shortage...and the American ethanol scam has absolutely destroyed relationships with food importers from the U.S. , like Egypt for example, that took decades to develop....and now for some Physics: if ethanol were in fact a "sum positive" they would use ethanol as the energy source to produce (boil/distill) more ethanol/corn mash.....and they, the ethanol producers, don't......because it consumes more energy to make a gallon than you get out of it (referred to as the “thermal load factor”)....It’s nothing like an oil refinery that uses part of the barrel of crude oil to power the refinery. Every ethanol “factory” pipes in natural gas to boil their corn mash. The vast majority of farmers spike in anhydrous ammonia fertizler (to gain the nitrogen nutrient) which of course is made from…..natural gas. The environmentalists who pushed for the ethanol program to begin with have absolutely washed their hands of it.

Just think- 40% of the American corn crop now goes for the 10% gasoline EPA mandated blend rate yet the EPA is pushing to raise the blend rate to 15%--or 60% of Americas corn crop. As an aside 80% of the canola crop, a premium cooking oil, is used for bio-fuels in  Germany. Double the price of corn and bull doze another million acres of Amazon jungle to plant; triple the price of tortillas and watch the Mexicans pour north across the border. Noted: Chuck Grasley, the erstwhile Republican Senator, is the mouthpiece for the ethanol scam. He farms 4,120 acres of Iowa corn ground. My source tells me that without the ethanol scam (and it was renewed for only 1 year…) the price of wheat goes to 4$ and corn to $3.35.


The Deere’s, the Monsanto’s, the Cargill/Mosaic’s, the Potash’s,, had the ethanol fraud pegged from day one. They collectively sent every hooker lobbyist to that whorehouse on the hill, formerly known as the U.S. Capitol, to fellate every senator they could rent a room for, with Grassely being the punk of punks. Corn and wheat prices are legislated prices via a per bushel subsidy. Never in 50 years of farm belt handouts has a subsidy so enriched so few.

Mon, 02/07/2011 - 19:14 | 941745 gmrpeabody
gmrpeabody's picture

Roger that on ethanol.


Mon, 02/07/2011 - 19:36 | 941788 Caviar Emptor
Caviar Emptor's picture

Don't think you totally get what happens when subsidies get pulled: farmers simply won't plant those acres which go to ethanol. They can't afford to because fertilizer alone costs too much. 

Since the Nixon administration the Dept of Interior has plied farmers with subsidies for everything, not just ethanol. Corn subsidies began in the 1970s. The idea behind pushing supply was to combat inflation. The Interior Dept at that time told farmers "Get Big or Get Out!". 

And finally, there's no US ethanol program for soybeans, sugar, orange juice or wheat. Yet prices have risen consistently for over a decade. 

What we don't consumer China and others come in and buy. All of it. China negotiates directly with farmers even for Ginseng (from Wisconsin, believe it or not). 

Natural resource depletion is contributing to crop prices: non-nitrogen fertilizer comes from minerals that are peaked out. Water scarcity is now affecting agricultural production: farmers in California's central valley have had to reduce their acreage. There are many sources of food inflation that are beneath the radar but they're all fundamental. 

Mon, 02/07/2011 - 21:15 | 942007 Stimulus Billy
Stimulus Billy's picture

You can be sure that Obama, of Illinois, supports the ethanol crime against humanity.

To Obama's credit he is aggressive on alternate energy, but IMO wrong on ethanol.

Tue, 02/08/2011 - 11:04 | 942792 Ben Fleeced
Ben Fleeced's picture

"Since the Nixon Roosevelt administration the Dept of Interior Farm Bureau has plied farmers (for votes) with subsidies for everything, not just ethanol. Corn subsidies began in the 1970  1930s".


Mon, 02/07/2011 - 18:35 | 941648 gwar5
gwar5's picture

ZH was right. There were no doubts. There were food shortges and riots in 2008.

Food riots this time was a sure thing. It was lurking beneath the surface.

Krugman? He says it's all global warming!  He can't bring himself to admit it's his recommended policy fix that is causing genocide and geoplitical instability. Anything to advance the ideology. We let these anti-humanists run things?  If he still teaches I hope his students slam him.

Mon, 02/07/2011 - 19:18 | 941755 gmrpeabody
gmrpeabody's picture

I doubt his students get it. I am sure he still doesn't. Why, he is way too forward thinking and progressive to ever look back.

If I drew him as an instructor, I would have the administrators change my class.

Mon, 02/07/2011 - 20:25 | 941925 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

I'll guarantee you his students get their noses brown at every opportunity.

Mon, 02/07/2011 - 20:47 | 941961 Pants McPants
Pants McPants's picture

My graduate program included two semesters of economics.  Fortunately neither was taught by Krugman.....but (predictably) the class reeked of Keynesianism. 

After class one day I challenged the instructor on his contention that WWII ended the Great Depression.  He didn't waver, even when I asked him if he truly believed an economy dedicated towards building tanks, bombs, and planes was healthy.  Without hesistating he said yes.  Great guy, that instructor.

Mon, 02/07/2011 - 20:53 | 941964 Pants McPants
Pants McPants's picture


Mon, 02/07/2011 - 20:52 | 941966 Pants McPants
Pants McPants's picture


Tue, 02/08/2011 - 00:00 | 942216 Alienated Serf
Alienated Serf's picture

i posted a few days ago how NPR was blaming on global warming.  this is obv the ruse tptb will be using.  deflect blame and get cap n trade at the same time.  god's work.

Tue, 02/08/2011 - 08:17 | 942424 Bob
Bob's picture

It's more than just Krugman.  I saw the movie 2012 yesterday and had a flash of recognition of our problem.  In the movie, the world is ending and in order to save "humanity" the governments pick the brightest and best (read "richest and most influential") to board arcs to survive the apocolypse so that the species might continue. 

Seeing how that played out--just as it would in real life--really put things into perspective.  Those were all the oligarchical pirates, political snakes and such that curse our world.

Perhaps we should preemptively load those people into funeral barges before we all fall to an apocolypse of their making.  Humanity might then have a decent chance.

Tue, 02/08/2011 - 10:19 | 942685 KevinB
KevinB's picture

in order to save "humanity" the governments pick the brightest and best (read "richest and most influential") to board arcs to survive the apocolypse so that the species might continue.

Yawn. This was done almost 50 years ago. Did you never see "Dr. Strangelove"?

Mon, 02/07/2011 - 18:37 | 941655 macholatte
macholatte's picture

Fleckenstein looks like the Fonz.

Jim Rogers has been shouting/yelling about food inflation since at least 2008. He knew this was going to happen.


Mon, 02/07/2011 - 19:18 | 941754 Cheyenne
Cheyenne's picture

Your post reminded of the day I came home when Madoff's fraud hit the airwaves.

John Fox, a stand-up comic who used to write for Happy Days, was nursing a beer watching CNBC.

"Did you hear about this Madoff thing?" he asked. "They're blaming it on Happy Days. They're really pissed at Fonzi."

Fucking guy is hilarious without even trying.

Mon, 02/07/2011 - 18:41 | 941667 ivana
ivana's picture

it's funny to hear from so many people about fed mistakes, wrong policies etc.
Please stop with this before I despise you.
It's scenario and it is playing out really well for those which are in "globalized" trade. It's exhausting inflation of everything we (global taxpayers) need and deflation of everything we have. While keeping banksters and WS packed with cash. Pendulum which swings in between infl-defl. I expect it should soon swing hard on deflation side while trying to keep max inflation on commodities by various global scams, crisis, massive speculations, "harsh winters", bombings, terrorist attacks etc etc
In core - it is an express expropriation. And ben have to do it asap before things go out of control.
Please ben - speed up. We and our families need to carry on with our lives...
Sorry for crony corrupt governments and their citizens which did not ensure self sufficient agriculture and sustainable local markets.

Mon, 02/07/2011 - 19:07 | 941729 downrodeo
downrodeo's picture

OMG, that is hilarious!


Stop please, I can't breathe....hahahahahahahah!

ivana History
Member for
6 days 13 hours

Trolling: You're doing it wrong....

Mon, 02/07/2011 - 20:37 | 941945 topcallingtroll
topcallingtroll's picture

Yeah.....I always offer lessons but very few take me up on it.

Mon, 02/07/2011 - 19:53 | 941828 Caviar Emptor
Caviar Emptor's picture

Yup. If you print trillions of dollars and spread those trillions around the world for decades, buying up everything that foreign countries can export, you shouldn't be surprised when one day those dollars come out of hiding away in savings and get used to buy things up. And growing economies need raw materials including ag. That drives up prices as economies compete for the same limited raw materials and natural resources. 

They've prospered off those dollars. Now they want to live larger. THey want more and better food. More of everything. So they start to spend all those dollars. 

And then a funny thing happened: the dollar went on a 30 year continuous decline! And in response to the fiasco of 2008, there's been a huge spike in dollar printing. Foreigners are well-aware that those dollars they've saved up are losing value fast. So whst do they do? Stop saving dollars, and spend them faster, sooner and more intensely. 

That pattern is what you call an inflationary spiral: spending your cash before it burns a hole in your pocket and drops in value. In foreign countries that spells big time food inflation. In the US it spells inflation for cost of living and doing business. Which is offset by deflating real estate values and real incomes. So it's masked. But it's there. 

Nobody should be so naive as to underestimate depletion of all kinds of natural resources across the board. THings that are essential are either peaked or in outright decline. Already certain types of seafood can only be fished on a quota basis. Just wait till we have a quota system for extraction of minerals and for water. 

Mon, 02/07/2011 - 23:59 | 942215 the rookie cynic
the rookie cynic's picture

Additionally, it's interesting to look at the BDI since 2008. It's fairly flat. I think this shows that the food price inflation is mostly driven by money printing, not demand. Bernanke is lying again as usual. He seems more than happy to take credit for the stock market bounce, but not escalating food prices. Wow.

I agree with you that declining supplies of natural resources is a key theme going forward.

Peak everything, bitchez!

Mon, 02/07/2011 - 20:01 | 941872 crazyjsmith
crazyjsmith's picture

Ivana, I can assure you nobody here at ZH cares whether you despise us or not.  We all have 99 problems, and that ain't one. 


I do agree that these are not unintended consequences, rather very intentional.  But the intention is not for the small guy or gal to "Carry on with our lives" as you say, unless that means get further enslaved paying off the lost bets of Wall Street and the Global Elite. 

Tue, 02/08/2011 - 04:44 | 942371 ivana
ivana's picture

have no idea how you figured out that "despise " goes to ZH readers. It goes big DDDDD to liars, official policy describers like like "nobel prize" regime thinkers and davos bullshitters. Hope that powerz puppets are minority here.
ZH learned me sooooo much and I am greatefull extremely to most of you here. Especially host.
That was a missing link for total geo-economic-energy-politics pic in my head.
FYI - have 0 debt - nada and so proud of it, decent deposits for years to come, own apt, family growing best quality of domestic food and vine... think I am covered on all bases. Problem is that I live in typical manipulated slave "democracy" so my friends + some of my family memebers + people I know are loosing jobs ... whole this shit is influencing everyone, going worse and that's not the environment I like to live in.
On the other hand, most of this bubbling, pumping, stimulating, printing, lying, endles "expert" explaining is mostly fiction which will not last forewer ... that's why I urge ben and powerz to finish their job asap.

Hope we all agree that nothing is unintentional and nothing major happens just by accident in today's world - especially economics.
Forget that... for exp: how come that brent is suddenly now more expensive that wti after decades?

Tue, 02/08/2011 - 12:20 | 943036 KevinB
KevinB's picture


If you spent just a bit more time on grammar, sentence structure, making antecedents, clear, etc., people might not be laughing at, or misinterpreting, you. Spend a little time proof-reading before you post, 'kay?

Mon, 02/07/2011 - 21:00 | 941989 Hoser
Hoser's picture

Yes of course!  Governments can be trusted to manage a country's currency.  It's their job!  When problems like deflation arise, the world's central banks - with a little help from free-floating exchange rates - makes the proper adjustments.  Bravo mr. central banker. haha-you are funny ivana


Mon, 02/07/2011 - 18:47 | 941681 H. Perowne
H. Perowne's picture

Amazing . . . he said "banksters" at 5:39 and didn't even break stride. Good on you, Bill. I wonder how long before it catches on to the general public.

Tue, 02/08/2011 - 07:39 | 942428 Bob
Bob's picture

It was gratifying when Ratigan spit out that the Fed's reason for printing was to "cover up Wall Street's two trillion dollar theft" as well.

Mon, 02/07/2011 - 18:49 | 941686 Yen Cross
Yen Cross's picture

Great points Ivana. Just, please spell despise with a Capital D. in the future.

Mon, 02/07/2011 - 19:15 | 941739 downrodeo
downrodeo's picture

yes, completely lucid and cogent. Absolutely not the drool-soaked blather of a raging nincompoop. However, I too take issue with the fact that you didn't convey the word despise with enough emphasis. You should really do better next time. Hey, I think your sarcasm button is broken.



Mon, 02/07/2011 - 19:23 | 941760 Yen Cross
Yen Cross's picture

cogent or cognizant?

Tue, 02/08/2011 - 11:33 | 942870 downrodeo
downrodeo's picture

What did I say?

Mon, 02/07/2011 - 18:50 | 941688 gwar5
gwar5's picture

Once in a while Ratigan is on it.

Mon, 02/07/2011 - 19:40 | 941797 mynhair
mynhair's picture

Only when he is sober....

Tue, 02/08/2011 - 07:44 | 942432 Bob
Bob's picture

He's the only guy in the broadcast Corporate Media who has been on it.  And he's been on it all.

I would be very surprised if he is not a regular here.

Mon, 02/07/2011 - 18:51 | 941690 davepowers
davepowers's picture

haha, the ad for this video was from Goldman Sachs

Mon, 02/07/2011 - 19:40 | 941796 jomama
jomama's picture

same for me. the cognitive dissonance is deafening. 

Mon, 02/07/2011 - 18:58 | 941697 MrPalladium
MrPalladium's picture

Gotta love that assumption that rising commodities prices are an "unintended" consequence of money printing. I certainly agree that rising commodity prices are a consequence of money printing (and I am heavily long those consequences for the nonce) but where is the evidence that the consequences are unintended?

Unintended by whom, exactly?

I get extremely annoyed, particularly with conservatives, who are always claiming that those who implement destructive governmental policies have "good intentions" and always asserting that the bad consequences are unintended.

Nonsense. The chairsatan is not a fool. He knows exactly what evil consequences flow from his actions. That is why he is and remains in such a panic over the threat of a full audit of the Fed's operations.

This nonsensical assumption of "good intentions" is a cowardly attempt to avoid conflict, particularly group conflict where bad policy so obviously confers benefits and priveleges on one group at the expense of another in the everlasting resource competition that is life on this planet.

Sadly, the pain of this great depression is not yet great enough to induce people to abandon the foolish delusions born of the Enlightenment and which have grown ever more dangerous during the last grand supercycle upwave that began around 1770. Americans are still full of hope that the economy will rebound and that increasing prosperity will allow us to pretend that we can afford the "civilization" of group competion and conflict through the filtering devices of democracy, and the bad policies that guarantee that organized groups will prevail in that competion over atomized individuals who refuse to organize to defend their interests. 

Mon, 02/07/2011 - 19:33 | 941784 Star Warrior
Star Warrior's picture

So lets hear your SOLUTIONS?

Mon, 02/07/2011 - 21:07 | 942002 Unlawful Justice
Unlawful Justice's picture

"I get extremely annoyed, particularly with conservatives"  

I get tired of the "Us and them argument".   Its Just us.

Tue, 02/08/2011 - 06:44 | 942400 AnAnonymous
AnAnonymous's picture

Nonsense. The chairsatan is not a fool. He knows exactly what evil consequences flow from his actions.


That is perfectly right. Ben Bernanke is on classic US business line. He knows what he is doing and expects to reap from what he is doing, like opening trade markets.

Tue, 02/08/2011 - 08:42 | 942437 Bob
Bob's picture

This nonsensical assumption of "good intentions" is a cowardly attempt to avoid conflict

I noted this easy assumption as well.  It seems to me that he is necessarily bound to "selling" the truth in a manner which will allow people to actually consider what he's proposing.  Going that final step would utterly alienate the American audience.  Who's gonna take seriously the charge that our nation's policy is the starve the world if that's what it takes to preserve our lifestyles?

American Exceptionalism, a.k.a, sociopathic narcissism, can't tolerate admitting either harm to others or mistakes.  Consider our murder of hundreds of thousands of Iraquis, an innocent "mistake" at best . . . but the body count is the same.  Who in government has admitted and expressed regret for this mistake?  Nobody.  How many other Americans even acknowledge it?

Consider the effect that even talking about it has on an American audience.  You're instantly alienated. 

I think Dylan is playing it as strongly as is realistically possible in Amerika.  Too bad Americans truly do not care about starving people elsewhere. 

Mon, 02/07/2011 - 18:55 | 941699 NumberNone
NumberNone's picture

Didn't anyone listen to the Bernank?  The U.S. only needs to take care of itself. The other countries have their own financial tools for dealing with inflation.  /sarc off

Mon, 02/07/2011 - 18:55 | 941705 ThisIsBob
ThisIsBob's picture

Let them eat stocks.

Mon, 02/07/2011 - 18:58 | 941712 dick cheneys ghost
dick cheneys ghost's picture

the disappearing honey bees are causing food inflation. its more plausible than "people in asia are eating more meat" argument.



Mon, 02/07/2011 - 19:42 | 941801 mynhair
mynhair's picture

If people would quit dipping those bees in chocolate, there would be(pun) no problem.

Mon, 02/07/2011 - 19:57 | 941868 Caviar Emptor
Caviar Emptor's picture

yep. That's part of natural resource depletion. Because bees are necessary for crop pollination. Without them crops will be weak. 

Mon, 02/07/2011 - 19:04 | 941720 Josh Randall
Josh Randall's picture

People can be bit on the @SS by Truth and never even know it - it's normalcy bias and these two aren't subscribing to normalcy bias; now will Joe Sixpack and Soccer Mom Suzy wake up please and spread the word ? Seems Ron Paul is our Obie Won Kenobe, but seeing reports like this re-enforce that he is not our only hope on the mainstream stage for sanity and stability. Wall Street used to be boring work right ?

Mon, 02/07/2011 - 19:09 | 941733 Spalding_Smailes
Spalding_Smailes's picture

They may not realise it but the hawkers in Xing Ling are on the front line of what Brazil’s new government has warned is a looming “trade war” between Latin America’s biggest economy and its main trading partners, including China.

Brazil has until recently viewed China as a crucial market for its exports and a close ally in the “Brics” club of fast-growing, large developing countries, which also includes India and Russia. But a growing flood of cheap Chinese manufactured goods into Brazil is testing the relationship.

“The relationship with China is important but, from an industrial perspective, it is extremely negative,” said a statement from the São Paulo Industrial Federation, known as Fiesp.

While Brazil reported a trade surplus with China of $5.2bn last year, this was due to commodity exports, Fiesp said. On the industrial front, imports of manufactured goods from China rose a “devastating” 60 per cent last year. The deficit in manufactured goods was a record $23.5bn, up from only $600m seven years ago.

Until recently, Brazil has regarded its trade relationship with China as mostly complementary. Between 2000 and 2009, Brazil’s exports to China rose 18-fold, driven by commodities such as iron ore and soya beans. In 2009, China surpassed the US as Brazil’s biggest trading partner, accounting for 12.5 per cent of the Latin American country’s exports.

But the rise in commodity exports has helped drive a near 40 per cent appreciation of its real in two years. This, together with a rapidly growing economy and increased access for Brazilians to consumer credit, has fuelled demand for imports of manufactured goods.


Tue, 02/08/2011 - 01:23 | 942296 DoChenRollingBearing
DoChenRollingBearing's picture

Thanks Spalding for that news about Brazil now looking at China as a problem.

It will interesting to see: Whither Brazil?

Tue, 02/08/2011 - 07:56 | 942440 nmewn
nmewn's picture

Brazil just reported in with 6% inflation...just sayin.

Tue, 02/08/2011 - 10:10 | 942656 Real Estate Geek
Real Estate Geek's picture

I wonder whether the Brazilian equivalent to our BLS cooks the books too.

Mon, 02/07/2011 - 19:11 | 941738 TooBearish
TooBearish's picture

Fleck seems like some burned out 70s dude that can hardly complete a sentence much less articulate to the kindergarteners that watch MSNBS what money printing is.

Mon, 02/07/2011 - 19:16 | 941751 lynnybee
lynnybee's picture

How appropriate that this article greeted me today; because I just got home from my errands & am I ever upset.......... no, better to call it livid.    I have not been to a McDonalds in over 3 years, but, my daughter gave me a BUY ONE / GET ONE FREE coupon for McDonald's fillet o' fish sandwiches !!    I drove thru & ordered.   My bill was $3.29.   I got into an argument with the order-taker person.   I insisted that she forgot to take off the coupon.   NO, she DID take off the coupon !!!    I WAS SHOCKED !!   "YOU ARE TELLING ME THAT ONE OF THOSE CRAPPY LITTLE FILET O' FISH SANDWICHES ARE NOW $3.29 per SANDWICH !!?   HOW IS THAT POSSIBLE, THEY ARE NOTHING BUT A FEW BITES & YOU DON'T EVEN GET A FULL SLICE of CHEESE on the damn thing ! "   ......... people, the last time I bought a filet o' fish it costs 89cents !!!  ..............

but, that's not the worst part.    Here in my little OHIO town, in that parking lot, an older man approached my car & PANHANDLED !!  He needed money to eat !!  I gave him $5, the man in the next car reached out of his window & gave him money .........


But, the man asking for money did not understand what I was talking about, he took the $5 I handed to him & was probably scared when I went off on my rant about how our own government is the cause of this.........

I've just had a really bad day, am crying thinking about this older person having to ask for money so he could eat at fuckin' McDonalds........... I never go there again, refuse to participate in anything regarding McDonalds & their crap food.

Mon, 02/07/2011 - 19:23 | 941762 Cheyenne
Cheyenne's picture

A dude who managed a McDonald's once told me they throw uneaten hamburgers in the garbage. I asked him why they didn't just feed animals with them.

"Because they make dogs vomit."

Never ate there again.

Mon, 02/07/2011 - 19:28 | 941772 perchprism
perchprism's picture

Yep.  Livid.

Mon, 02/07/2011 - 19:59 | 941870 Yen Cross
Yen Cross's picture

Hey I like that Homer Simpson Nuke Plant thingie? Can we syllabalize. Sentence structure. Numerical values? Thanks.

Mon, 02/07/2011 - 19:30 | 941776 gmrpeabody
gmrpeabody's picture

I know you had a bad day Lynny, and I hope this doesn't spoil the remainder of it, but I doubt that he used the $5 that you befriended him with for food. Just sayin.....

Then again, I have become quite cynical that last couple of years.

You are a good person.

Mon, 02/07/2011 - 20:05 | 941881 Bananamerican
Bananamerican's picture

started seeing more homeless around town 2 years ago...

1st you'd see one or two, by freeway on-ramps, busy street margins... now they're in doorways, pushing carts, behind stores, in parks, picking thru city/store trash bins, some gesticulating crazily, more and more appearing like some horrible exponential function at work.

The young ones show up at the door pitching some magazine sales/study in Europe/"keep kids off the streets/drugs" rap (usually with a beverage and some smeared, crumpled "literature" in hand)...

The old ones in the cold get me.

When i was young (70's), the economic swings i took in stride if i noticed them at all...

I notice now.

Mon, 02/07/2011 - 23:03 | 942140 lincolnsteffens
lincolnsteffens's picture

The town I live in has  a homeless guy but his story is a bit different. He could actually afford to rent a decent apartment. The reason he is homeless is no one can put up with his mental state. He often refuses to pay the rent and is argumentative. The guy is just a major pain in the ass. Sometimes he sleeps in the lawn area behind the town hall. I suppose a few hundred people know where he beds down and they don't think he should be chased off. He buys breakfast at a local food co-op. A little twist.

We can't know what is really going on with any one person. There are some who make a decen't living out of panhandleing. I was in Mexico and specifically asked not to hand out money to beggars as it tends to increase with parents teaching and using their children.

Giving donations to small non profit neighborhood, town or city organizations is probably best. Local food pantries know best how to distribute food to the needy since they know many of the people that need help. Much of the staff are volunteers.

Local service organizations, like KIWANIS which I belong to, have programs to buy winter coats and gloves for children whose parents can't afford to. I think we outfitted about 60 children. Join or support a service organization. KIWANIS ROTARY LIONS etc.


Mon, 02/07/2011 - 21:23 | 942010 Jerome Lester H...
Jerome Lester Horwitz's picture

Your story reminds me of something that happened to me recently. My wife, son and I were shopping at Meijers. I was putting groceries in the car and my wife was inside taking our son to the bathroom. While putting groceries in the car a woman, maybe in her mid twenties, came up to me and asked if I had any money that I could give her. She said she had been in an argument with her boyfriend and he left her there and she needed cab fare to get home. I apologized and told her I did not have any cash on me. When my wife and son returned I told my wife what had happened and we drove around the parking lot to look for the woman because my wife did have some cash. We were unable to find the woman so we went home. The next weekend we were food shopping at the same store. Once again my wife and son were inside and I was putting groceries in the car and the same woman came up to me again with the same sob story asking for money for cab fare. So I asked her "It's been a week and you still have not found a ride home?" Realizing that she tried to scam someone that she tried unsuccessfully a week before she apologized and scurried away. I just wonder how much money she makes with that scam!

Mon, 02/07/2011 - 23:24 | 942169 QQQBall
QQQBall's picture

You shud have given him the filet of fish sandwich ")

Tue, 02/08/2011 - 02:46 | 942341 merehuman
merehuman's picture

lynnybee  you have written many posts and read many here. Those of us with empathy  are really feeling the pain. You , having been here are well read and will be the leaders and centers of calm when the real havoc begins. 

And forgive yourself. That old man got a strong warning to look around , and he will . That might save his life, to be shocked out of his dream world as you have been shocked from yours.  gain strenght by preparing, including strengthening yourself.

Go off on the wrong guy and you could be hurt. Me, would have given you the five back

Tue, 02/08/2011 - 10:19 | 942684 Real Estate Geek
Real Estate Geek's picture

Empathy is hard to maintain when you live in the city; SF in my case.  I've given money to a few people only to see them back on the same corner a week later spouting the same BS story.  It makes me feel like a chump for having given money before.

And what really sucks is that the genuinely needy are eclipsed by these scammers.

Tue, 02/08/2011 - 07:58 | 942444 Bob
Bob's picture

+1000000 lynnybees!

Mon, 02/07/2011 - 19:19 | 941756 bob_dabolina
bob_dabolina's picture

I guess no one watched Bernanke on the 60 minutes interview.

He's not printing money. He said so. There is no inflation.

Mon, 02/07/2011 - 19:33 | 941782 kaiten
kaiten's picture

Banana Ben is going to cause WWIII

Mon, 02/07/2011 - 19:39 | 941793 Fake Jim Quinn
Fake Jim Quinn's picture

We spent all those lives and money knocking off Saddam. We simply could have asked Blackhawk Ben to do the job.

Tue, 02/08/2011 - 08:01 | 942450 Bob
Bob's picture

The Pentagon's Marauding Fraudsters


There's no money for the military-industrial complex in Peace.

Mon, 02/07/2011 - 19:40 | 941798 fretmarker
fretmarker's picture

The Bernank will testify before Ron Paul this week.  Ron won't take no for an answer....

Mon, 02/07/2011 - 19:45 | 941808 jimmyjames
jimmyjames's picture

and today's first time in over two years increase in revolving credit merely confirms this view. Alas, to all who believe that deflation or deleveraging is a greater threat: you have our sympathies,


So there's nothing that could turn these blips back negative?

What about the market-the real one?

Maybe it will get wise to the game-it always does sooner or later-


yoy-it looks impressive but looking at the overall picture-it all has a long trip ahead to get back to anywhere close to where we came from-

Mon, 02/07/2011 - 19:48 | 941815 lynnybee
lynnybee's picture

thank you, all.   Gerald Celente says that by the year 2012 Americans won't be able to put food on the table ....... i worry so much about everyone, elderly people, young adults who can't find work, kids whose parents can barely make it.   The jobs market collapse has already happened.  The banking collapse happened a couple of years ago.   Up next is the currency collapse & then we go into collapse of the country.    promise me that everyone who reads my ramblings will try hard to share with those less fortunate, that will help put my mind at ease.  Good evening & regards to my favorite people & website !!  love to all .........

Mon, 02/07/2011 - 19:57 | 941867 Josh Randall
Josh Randall's picture

thanks Lynn for your big heart - Wall Street needs more Lynn and less Ben

Mon, 02/07/2011 - 20:16 | 941904 Clockwork Orange
Clockwork Orange's picture

no worries, lynny, we can just take ben's filet-o--fishes.. 

Mon, 02/07/2011 - 20:26 | 941926 topcallingtroll
topcallingtroll's picture

Hey lynny if 2012 rolls around and it is not a disaster will you relax a little? You are too overfocused on the negative. Dont waste your time in fear and worry.

Mon, 02/07/2011 - 20:59 | 941984 LostWages
LostWages's picture

Celente has been calling for riots in the streets of America for a couple of years now.  Guess he'll be right sooner or later.  I don't think he factored in QE 1&2.

Just like Prechter....I'm sure the QE ramp up is messing his wave forecasting too. 

Nothing makes sense anymore....

If the economy is improving, why do we need QE?  Why ZIRP?  Where's the jobs? 

The Wall Street gamblers don't complain tho, they are making money with BTFD.

When we have no middle class left, we'll be just like the peasants in Egypt.  Fucking politicians are useless.  Our only hope is Ron Paul pulling the curtain back on The Bernank....just hope Ron Paul doesn't end up like JFK, and he best hire a food taster.

Mon, 02/07/2011 - 23:16 | 942157 lincolnsteffens
lincolnsteffens's picture


What a sweetheart. Stay informed about what could happen but stay focused on what needs to be done today. After you deal with today,  tomorrow will be there in no time and you can deal with tomorrow, well....tomorrow. There are lots of dangers out there but none of them may actually happen. You can't change things which you have no power over so it is best to deal with the ones you are able to change. "keep your ear to the ground" and make good decisions daily. Knowledge is power.

Tue, 02/08/2011 - 02:53 | 942344 A Nanny Moose
A Nanny Moose's picture

Never believed in Unicorns the crap skittles, but remember to think positive. Or perhaps just not dwell on all the bad posibilities. Anyone who has control of their mind and body has all the tools they need to make it. The key lies in applying those tools

Mon, 02/07/2011 - 20:04 | 941822 razorthin
razorthin's picture

coxxukkers.  yeah, i said it.  it's my expression of maximum anger.

Mon, 02/07/2011 - 19:55 | 941832 mynhair
mynhair's picture

Cumon on people!  It's all due to Global Scam....err, Warming!

Krugman said so, or did I mishear?

Mon, 02/07/2011 - 20:04 | 941880 Yen Cross
Yen Cross's picture

I am your eye in the sky.

Mon, 02/07/2011 - 20:03 | 941877's picture

I think the Bernank is the guy in this video trying to get his blackberry fixed...

Mon, 02/07/2011 - 20:08 | 941882 mynhair
mynhair's picture

I can't stand it!

Lean Forward,

and bend over.

Only MSLSD is that brain damaged, outside of goobermint.

Mon, 02/07/2011 - 20:07 | 941884 Cleanclog
Cleanclog's picture

It's even worse than that - cuz food corporations like McDonalds or Campbell's can absorb some costs in the production process, make sizes smaller, make the bun big but patty smaller, fewer veges in the soup, thus keeping the retail cost of processed food in line.  

But for people who eat the simple foods they prepare themselves, like rice, lentils, grains, meat, eggs, cheese, etc . . .  their costs are going up and they don't have an alternative.

So not just prices making for more hunger, the healthiness of food may also go down.



Mon, 02/07/2011 - 20:09 | 941889 mynhair
mynhair's picture

Nice to see you drink the Kool-Aid.  If it is food, it is healthy.

Quit listening to the LSM latest 'studies', ok?

Tue, 02/08/2011 - 09:38 | 942578 Arthor Bearing
Arthor Bearing's picture

That is nonsense

Mon, 02/07/2011 - 20:30 | 941928 KickIce
KickIce's picture

We could save more if we bought more in bulk; like rice, wheat and even the large cans of veggies.  We spend a small fortune in packaging on the individually wrapped items we buy for convenience.

Mon, 02/07/2011 - 20:07 | 941885 Revolution_star...
Revolution_starts_now's picture

You think feelin up 12 yr olds at the airport is bad?

If you only knew, they sniffin your packets too.

If you on ZH, they probably got some hd space for you packets.

Mon, 02/07/2011 - 20:11 | 941890 mynhair
mynhair's picture

Don't touch my junk (packets)?

Mon, 02/07/2011 - 20:53 | 941975 Revolution_star...
Revolution_starts_now's picture

Don't sniff me bro?

Tue, 02/08/2011 - 00:25 | 942125 gloomboomdoom
gloomboomdoom's picture


Tue, 02/08/2011 - 02:57 | 942346 A Nanny Moose
A Nanny Moose's picture

all your emails are belong to US

Tue, 02/08/2011 - 06:29 | 942396 EscapeKey
EscapeKey's picture

Well, I managed to see Washington, Florida, California, and Mississippi, but never made it to New York. Too bad, I really wanted to experience NY.

But there's fuck all chance of me now going, being treated like a criminal and forcibly sterilized at the point of entry.

The Nazis never went away. They moved to the US.

Heil Napolitano.

Mon, 02/07/2011 - 20:12 | 941893 Instant Karma
Instant Karma's picture

Let them eat oil for $90 per barrel.

Tue, 02/08/2011 - 10:41 | 942737 h3m1ngw4y
h3m1ngw4y's picture

in case you havent noticed a lot of oil is eaten daily for production transportation of your food, so yes you are eating oil at 90 a barrel and at 190 you are still eating oil. but perhaps you too join the riot bandwaggon sooner or later

Mon, 02/07/2011 - 20:24 | 941920 KickIce
KickIce's picture

"...unintended consequences of the Fed."

I'm gonna have to disagree on that part.

Mon, 02/07/2011 - 20:29 | 941924 koot
koot's picture

Without listening to Ratigan and Bill, I will make comment first on the issue of deflation via inflation and why it will end in really terrible inflation.  First ZeroHedge is correct, Ben can not let deflation continue because the banks who own the Fed would go bankrupt.  But that is just part of the reason Ben will do what he is doing.  Main and big part is the US governments, from City to State to Federal are TOO BIG, and consume too much of the US productivity without much contribution. 

Look the US militaty can't even win a war.  When was the last time the US military actually won a war?  And I am not blaming the US military because it is no allowed to win a war by the elected and non elected politcians.

There is simply no way for the few productive sectors of the US economy to actually support these governments, let alone trying to support foreign governments.  But the rub really hurts when looking at what the governments in the US have been, are and will be doing.  The country simply does not have leadership even close to what is necessary to fix the problems let alone even address them.  So QE to infinity is their only plan.


Mon, 02/07/2011 - 23:36 | 942187 lincolnsteffens
lincolnsteffens's picture

I couldn't agree with you more. Great minds think alike. We have a glorified and expensive welfare program called bloated government public service sector. If we reduced some of the Military global presence and got rid of 30% of public employees they would all be pounding the streets looking for jobs that don't exist.  Reducing waste like the US Tax Code, which doesn't need to be more than 10 pages, would put millions of public employees and related private sector employees out of business.

We have to start NOW but smart and slowly. It looks like everything except labor will cost more. US workers not getting increased wages but everything else costing more. I'd call that inflation!

Tue, 02/08/2011 - 00:02 | 942219 lincolnsteffens
lincolnsteffens's picture

I forgot... your comment about the military.....If our military was told to win in Afghanistan or had been told to win in Viet Nam without politics micromanaging what is fair or isn't we would win. This is precisely the attitudes of our adversaries who do what ever they have to in order to win. The US has allowed itself no such freedoms to destroy.  If the US does not have the stomach to squash its enemies, leaving them to suffer,  it should not get into a fight.

Tue, 02/08/2011 - 06:30 | 942397 EscapeKey
EscapeKey's picture

There's more money in continuous wars, than wars which end.

Mon, 02/07/2011 - 20:41 | 941952 Chupacabra1977
Chupacabra1977's picture

What happens when the music stops for Bernanke, etal?


Maybe the Cadre will pile into the Goldman Gulfstream fleet and head off

to some unknown destination.


We need drones to stop them!

Mon, 02/07/2011 - 20:46 | 941953's picture

Rick Scott, new Gov. of Florida, just called for $5 Billion CUT in state spending....and wants to build state savings up....(let the crying begin).....lets hope he sets a trend for the country..we should probably call more attention to those trying and actually doing the hard work to make things right and shaming the others into action....

Mon, 02/07/2011 - 21:43 | 942040 Hephasteus
Hephasteus's picture

Until your state publicly and openly defaults on it's bonds it is just blowing smoke up your ass. As long as it participates in the bond market it is selling it's citizens towards indentured servitude of usery interest.

Mon, 02/07/2011 - 23:46 | 942198 IdiotsOutWalkin...
IdiotsOutWalkingAbout's picture

Scott will be in the crooked politician hall of fame before his term is over. He's a comptete crook! He defrauded Medicare and then used those funds to buy his election to the governors's office. Shut the f#ck up about Scott F00l. Anybody who voted for him is a complete, absolute !diot or numbnuts.

Mon, 02/07/2011 - 20:54 | 941970 THE DORK OF CORK
THE DORK OF CORK's picture

This is a crock of shit - bankers have been printing for decades , its just that the CBs are at it now.

They have to inflate - at least 4 decades of epic malinvestment has its consequences.


If you are out of capital through commercial bank credit creation - the CBs have to create real currency by exposing their balance sheet to the physical world.

Its called recapitalisation bitches - austerity for the masses through either default or inflation - the Atlantist CBs have chosen inflation - but it would have been nice if they wiped out all equity and bank bonds 100% before they inflate the rest - the paper may have kept some value then. 

Mon, 02/07/2011 - 21:43 | 942042 slewie the pi-rat
slewie the pi-rat's picture

are you married?

hey, yen X, how r the acidheads in queensland doin?  hats?

Mon, 02/07/2011 - 20:58 | 941985 Yen Cross
Yen Cross's picture

Crude is headed back to the mid 80's. Nat gas dived. Save your money.

Mon, 02/07/2011 - 20:59 | 941986 sgorem
sgorem's picture

Save the last bullet for yourself...............

Mon, 02/07/2011 - 21:39 | 942036 Yen Cross
Yen Cross's picture

I use bullets to live. I like hunting! I like LIFE even more!

Mon, 02/07/2011 - 21:04 | 941993 Pants McPants
Pants McPants's picture

Anyone want to bet that now that football is over people will start paying more attention to food price inflation?


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