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The Taper, The Inflation, And The American People's Matrix Of Lies

Tyler Durden's picture





 

Submitted by Howard Kunstler of Kunstler.com,

And so in his valedictory, Federal Reserve chief Ben Bernanke pulls one last dead rabbit out of his hat — it suffocated while the head-fake taper percolated in Ben’s brain lo these many months of jive talkin’. As the year turns, the central bank will supposedly monetize $10 billion less debt per month — $75 billion down from $85 billion — with $5 billion each deducted from the US Treasury stream and the rotten mortgage barrel. Was there a catch?

You could say that. For instance, what to make of the curious report out of the American Enterprise Institute by John H. Makin saying that the Fed’s actual purchase of debt paper amounted to an average $94 billion a month through the year 2013, not $85 billion? I have averred often in this space to the Fed’s ability to conduct back-door buying operations of all kinds of janky financial crapola — and in a world where claims on promises to pay hugely exceed anyone’s ability to pay or re-pay, there’s as much of it out there as there are plastic grocery bags floating in the horse latitudes of the Pacific Ocean. The Fed can hose up bad paper all the live-long day and apparently get away with mis-reporting what it is doing, and is the country any the worse for it?

At the end of that live-long day the American people are left in a matrix of lies so thick and sticky that all the de-greasing agents supposedly vested in freedom of the press will not avail to liberate them, and they are suspended like little morsels of winged prey to be sucked dry by the descending spiders of crony capital.

Bottom line: the taper so far is just  $1 billion shy of being completely fake (so far as anyone knows), a magician’s mis-direction from the real action of the gag, which was removing the previous “threshold” of a 6.5 percent unemployment figure for raising interest rates — in other words, promising ZIRP (zero interest rate policy) forever! That would green light a never-ending continued carry trade (i.e. looting operation) of Too-Big-To-Fail-or-Jail primary dealer banks extracting “free” money from the Fed window for conversion, abracadabra, into, say, student loans at 5 percent, guaranteed to enslave the generation now coming into adult flower. (The catch there being that they might flower into revolutionaries eager to string up such bankers from every lamp post in the Hamptons.)

I know there is a lot of confusion “out there” about what constitutes inflation — is it a so-called “monetary phenomenon” or just shit costing more? — but that’s probably too fine a distinction for “folks” (to use the president’s favorite term) who can’t pay five bucks for a jar of peanut butter. The price of everything except the yellow junk called gold, seems to be shooting up. Pretty soon, they’ll be using that worthless gold to solder the drain pipes on bathroom fixtures out where the housing starts roam.

Which brings us to the interesting question: exactly what mysterious entities have been systematically pounding the price of the yellow stuff down in the PM markets like Tony Soprano’s crew “tuning up” some pathetic vic with thirty-inch lengths of re-bar and a fungo bat? And, per corollary, who are the anonymous agents yanking the equity indexes such as we saw on Wednesday, December 18, when a holy host of stock shorts was magically deployed in anticipation of Ben Bernanke’s taper announcement so as to inspire a short-covering mega-rally when he opened the hole in his beard? What I wonder: if we have so much fabulous surveillance technology, why doesn’t some enterprising nerd team find out who’s behind all these pushing-pullings, yanking-and-crankings? Where is the Snowden of the financial markets who will unmask these actors?

Let’s cut to the chase. You heard it here: not only will the Fed eventually (i.e. soon) fail to taper in any meaningful sense; before this is over they will ramp up the purchases of worthless securities beyond $100 billion a month through every back door and trap door in the infamous Eccles Building, including perhaps Janet Yellen’s dainty fundament. The inflation — whatever that is — is sitting out there waiting behind the Hoover Dam of the Fed’s balance sheet. I wouldn’t want to be in Las Vegas when the first cracks appear on it. Merry Christmas everyone.

 


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Mon, 12/23/2013 - 11:42 | Link to Comment y3maxx
y3maxx's picture

...USSA Weimar Republic...The best of all Empires

Mon, 12/23/2013 - 12:08 | Link to Comment Headbanger
Headbanger's picture

I disagree with Kunstler on this one cause as I've said here before, the big banks who OWN the Federal Reserve are starting to protect their asses now that they see QE and all the other bullshit isn't working.

And the political motivation to keep the crap going is gone now that Obama has lost all his magical powers.

So the Fed is finished propping up a failing economy and is going  into "bunker mentality" now.

A major war will start in the next year or so when our foreign lenders see the US is about to default so they can grab all the resources they can get cause we'll be too broke to defend them!

Either that or the US will start a major war first while we can and to crush foreign (as in Asian) currencies.

Mon, 12/23/2013 - 12:38 | Link to Comment knukles
knukles's picture

There is nothing hidden.. but from the public.
If the least forbidding case of the NSA surveillance systems is correct (which we know to be the troof and nutin' but da troof) and as the Fed owns the Fed Wire system, then there is absolutely No Single Financial Transaction Anywhere in the Whole World that is Not Known to the PTB.

Anything from credit card purchases to money laundering for drugs, arms, humans, international wire transfers amongst gubamints, politicians, dark pools, deep net, black operations, every single laundered dollar must pass through the host country's banking system..
And yet, nobody knows or is responsible.

May "They" choke to death on "Their" fucking Holiday Dinners.

Nothing is Unknown
It's just a matter of who knows and what they do with that knowledge.

Mon, 12/23/2013 - 12:45 | Link to Comment fonzannoon
fonzannoon's picture

 "the Federal Reserve are starting to protect their asses now that they see QE and all the other bullshit isn't working."

It's working spectacularly. They could not have wished for it to have worked any better.

Mon, 12/23/2013 - 13:23 | Link to Comment Headbanger
Headbanger's picture

Oh yeah right.  The big banks who own the Federal Reserve really want another meltdown like they had in 2008! 

Duh!

Mon, 12/23/2013 - 13:41 | Link to Comment DavidC
DavidC's picture

They will if it's engineered and they're all short.

(I wasn't the one marked you down).
DavidC

Mon, 12/23/2013 - 13:51 | Link to Comment fonzannoon
fonzannoon's picture

The quote I took from headbangers post was used to illustrate that headbanger believes that the feds use of QE was meant to revive the economy etc. In the first place. It was purely a wealth transfer mechanism designed to suck every last dollar out of the middle class. They were nice enough however to create the free shit army to allow us to fall far down but stay just comfortable enough to not get too pissy about it. 

Mon, 12/23/2013 - 14:35 | Link to Comment DaveyJones
DaveyJones's picture

cause they know, with recent examples, that the revolutions happen when food gets too expensive

Mon, 12/23/2013 - 14:36 | Link to Comment Jonas Parker
Jonas Parker's picture

Ho! Ho! Ho!  We is fucked! Merry Christmas!

Mon, 12/23/2013 - 15:39 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture

I agree 100%. It brings up the age old question or "are they really stupid or are they evil?" That the result of this printing would do nothing but benefit the top at the expense of everyone else has been widely know for decades. RP has been preaching it, and evidence has shown him to be correct, yet despite knowing all this, they continue to keep using the same policies that only increase and prolong the misery of those not in charge. So, since they are not stupid, they are evil, and doing it on purpose,and yes this scheme has worked quite well for the banks and the govt. All of this wouldnt be possible without a bought and paid for presstitue media, and a terrible education system that leaves a populace so clueless the vast majority of them has no clue what the fed is, what ZIRP, TARP, or QE means. So obviously much credit goes to the MSM and public school systems as well. gotta give credit where it is due

Mon, 12/23/2013 - 12:54 | Link to Comment SimMaker
SimMaker's picture

"A major war will start in the next year or so when our foreign lenders see the US is about to default so they can grab all the resources they can get cause we'll be too broke to defend them!"

Not so sure headbanger...I mean, yes..and no.......

I dont think the Bankers are going to start a 3rd world war, or put another way, I don't think they want the USA doing any Empire Building. I feel that the idea ll along has been to destroy America, so Yes, I do see war coming, but I don't think it will be overseas.......I think the war is going to take place in the USA, another "civil" war. To TPTB, a "free" and strong America is bad for them, and that may be coming when the Obama backlash really kicks in.

The Bankers want Amerrica taken down a peg or two.  All those guns and free thinking people are getting in the way of their New World Order.

 

Mon, 12/23/2013 - 13:20 | Link to Comment Headbanger
Headbanger's picture

China wants their money back big time!  And they're setting up to hold Japan hostage for it now. Taiwan as well.

China will soon start demanding more in the way of access physical assets from the US such as oil in Africa or the Sea of Japan, etc as well seeking greater militrary protection of their foreign interests when they see their investments in the US are at risk of default.

The US and most NATO nations will respond  with greater and greater military build up along with increased intelligence gathering to thwart espionage.

But India may well prove to be the biggest military adversary of China for much the same reasons as them.

This military buildup will lead to a major global war.

THEN the banksters will take over the world dirt cheap!

"Sell at the sound of canon. Buy when there's blood in the streets"  Baron Rothschild  

Mon, 12/23/2013 - 13:03 | Link to Comment TheReplacement
TheReplacement's picture

You may be right about the war bit but...

The catch there being that they might flower into revolutionaries eager to string up such bankers from every lamp post in the Hamptons.

I think there are multiple factions pulling on the rope here.  We have the corporatists being cronies.  We have the bankers siphoning off the wealth of this country and making it global.  We have the military industrial complex doing their empire thing.  Then you have the marxists.  They have been at this as long as the others but they have coopted the schools.  Naturally the greedy bastards at the corps and banks are going to suck the system dry.  When that happens the marxists will turn the indoctrinated students loose on the system and viola, revolucion!

Mon, 12/23/2013 - 15:01 | Link to Comment Rukeysers Ghost
Rukeysers Ghost's picture

So the Fed is finished propping up a failing economy and is going  into "bunker mentality" now.

 

You give the Fed too much credit. They are too stupid to know that they need to hunker down. Paul Volker was the last mildly competent Fed chair. Since then we have had a string of associate professors from a crappy two year college pretending they are the smartest man in the room.

The only thing Greenspan, Bernanke and Yellen know is where the on button is on the printing presses. That is why it is their cure all for any malady. It's all their small minds know.

Mon, 12/23/2013 - 12:06 | Link to Comment Xibalba
Xibalba's picture

Weimar will look contained in comparison

Mon, 12/23/2013 - 12:23 | Link to Comment DaveyJones
DaveyJones's picture

it was the best of empires, it was the worst of empires...

Mon, 12/23/2013 - 12:37 | Link to Comment knukles
knukles's picture

All experienced within a mere nanosecond of time.

Mon, 12/23/2013 - 15:43 | Link to Comment AngelEyes00
AngelEyes00's picture

At 94B a mo. = 1.128 trillion a year/ 84B = 1.008T / 75b = 900B (9/10th of a T)

Am I crazy or is that a lot of stimulus?  So now it's 84B instead of 75B, because it 'actually' started at 94B month.  The final result is stimulus is still at ONE TRILLION DOLLARS A YEAR! 

Those lying scumbags!!!

 

 

Mon, 12/23/2013 - 11:43 | Link to Comment Clowns on Acid
Clowns on Acid's picture

In 2014... there is going to be blood.

Mon, 12/23/2013 - 11:47 | Link to Comment Uchtdorf
Uchtdorf's picture

Yes. Some before, but mostly after the November elections. Look for things to really spiral downward on November 8th.

Mon, 12/23/2013 - 11:50 | Link to Comment malikai
malikai's picture

In XXXX... there is going to be blood.

When have I heard that before?

Oh yea, that's right.. 2013, 2012, 2011, 2010, 2009, 2008, 2007, etc..

Mon, 12/23/2013 - 13:18 | Link to Comment webspin
webspin's picture

YTK 2000, 1991 gulf war Carl Sagan; "Nuclear winter from Kwati burning oil", 1987 Market crash, 1980 recession last gold bug rally, 1967 Riots, 1962 cuban missle crissis, 1952 cold war, 1941 WWII, ... 1000 A.D. book of relevations...stone henge... first mans solar eclipse...

Mon, 12/23/2013 - 13:21 | Link to Comment Overfed
Overfed's picture

That is true. But, in "The Boy Who Cried Wolf", a wolf really did make an appearance to chow down on some sheep. Right after everyone lowered their guard.

Mon, 12/23/2013 - 13:43 | Link to Comment El Vaquero
El Vaquero's picture

And often these kinds of things get started from something unexpected.  Not always, but often.  I think that the key is that there simply is too much tension in the world today.  So when is it going to cause something to break?  I doubt anybody really knows, but anybody who looks can see the tension, and can understand that something must eventually give way. 

Mon, 12/23/2013 - 14:15 | Link to Comment RabbitChow
RabbitChow's picture

Which is why the MSM preaches to the hapless, hopeless sheeple, and when the crisis hits the MSM will say, "Who could have seen this coming?"

As Regis used to say, "Who knew?  I sure didn't..."

Mon, 12/23/2013 - 14:28 | Link to Comment CHX
CHX's picture

Yep, with every wrong call, the probability of the next year's call being right increases. Eventually, the call is going to be correct, IMHO. Timing is a sucker's game though. So will it be 2014, 2015, 2016,... or 2099. My gut feeling is this current charade won't last another 5 years, but I'd be honestly glad if I'm proven wrong. How was that example again with a football stadium being filled with water inflow that increased exponentially? Once past a critical point, things can escalate VERY fast. 

Mon, 12/23/2013 - 22:59 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Ah, so when people went short convinced that ZH was right in 2008, and got hosed, it just increased the odds they would be right next year? Damn, that trade is deeply in the red at the moment...

Mon, 12/23/2013 - 23:01 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

< increments the "any time now" counter >

Yeah, same 'ol same old...

Mon, 12/23/2013 - 11:46 | Link to Comment Hulk
Hulk's picture

This is no country for old people...

Mon, 12/23/2013 - 12:27 | Link to Comment DaveyJones
DaveyJones's picture

this is an old country for know people

Mon, 12/23/2013 - 12:26 | Link to Comment nickels
nickels's picture

If the Fed was a parent, the children would have been put in protective custody long ago.

Mon, 12/23/2013 - 16:24 | Link to Comment falak pema
falak pema's picture

try the Melioramentum ring it'll make you younger like from drinking hydromel or nectar.

Mon, 12/23/2013 - 14:11 | Link to Comment fauxhammer
fauxhammer's picture

I suspect there will be...every time Yellin opens the hole in HER beard...

Mon, 12/23/2013 - 14:18 | Link to Comment RabbitChow
RabbitChow's picture

And Absolon him fell ne bet ne werse,
But with his mouth he kiss'd her naked erse
Full savourly. When he was ware of this,
Aback he start, and thought it was amiss;
For well he wist a woman hath no beard.

Geoffrey Chaucer

Mon, 12/23/2013 - 11:45 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I noticed a lot of "there is no inflation" trolls on the financial blogs lately. They go hand in hand with the gold trolls.

The Ministry of Truth appears to be working overtime.

Mon, 12/23/2013 - 12:53 | Link to Comment akak
akak's picture

The very BEST one of all was "JimmyJames" with the pigman avatar, who tried to convince us that "constant inflation-adjusted prices prove that there is no inflation"!  Oh man, I just about crapped myself with laughter after that one!

Mon, 12/23/2013 - 13:17 | Link to Comment malikai
malikai's picture

Cherish those nuggets.

I fear that as we continue down the abyss, troll quality will inevitably decline alongside.

Just one of the more sad aspects of societal decay.

Mon, 12/23/2013 - 13:29 | Link to Comment akak
akak's picture

Alas, alas, three times alas for the bygone days of Chinese Citizenism trollfoolery.

Mon, 12/23/2013 - 17:52 | Link to Comment falak pema
falak pema's picture

Akak, I have a fleeting vision of you 'Poloniumnising' him like you did to that Canuk, Leo the unfortunate last king of  social security meme, with your wicked Pastafarian ways.

You are one mean ZH liquidator, armed with your silver lasered tongue, of those ZH deniers who troll beyond reason to the point of treason as defined by the mantra of your pastafarian bible.

Dante's Inferno has no flames to match your down thumbing of troll bumbling into numbed pasta dumplings.

just kidding; I never use a sarc button.

Mon, 12/23/2013 - 11:48 | Link to Comment cossack55
cossack55's picture

All I want for Christmas is......(held in abeyance due to surveillance)....!!

That would make me SOOOOO Happy.

Mon, 12/23/2013 - 11:47 | Link to Comment Pooper Popper
Pooper Popper's picture

Fuck all these Traitors!

Molon Labe!

Merry Christmas!

Mon, 12/23/2013 - 11:51 | Link to Comment bobert
bobert's picture

Total "purchases" equal $75B.

OK.

How much is maturing each month and repurchased as compared to new purchases?

The above information would be more revealing in relation to monetary stimulus.

Mon, 12/23/2013 - 11:52 | Link to Comment PR Guy
PR Guy's picture

 

While you are waiting for the lies to stop, here's a funny animation to watch:

 

http://www.youtube.com/watch?v=39X4sXc0Ubc

Mon, 12/23/2013 - 12:07 | Link to Comment JustObserving
JustObserving's picture

No one participates more in the matrix of lies, Mr Kunstler, when you write:

 I regard the 9/11 conspiracy theories as a fantasy and a distraction from the real problems we face.

http://www.kunstler.com/mags_diary15.html

And thank you, Kunstler, for that badge of honor from a peerless liar and hypocrite:

The characters who infest their comment section (of Zero Hedge) are some of the worst vermin in trolldom.

http://kunstler.com/blog/2012/07/salutes-to-the-homeys.html

 

 

Mon, 12/23/2013 - 12:27 | Link to Comment giggler321
giggler321's picture

I'll keep posting then, pleased someone reads it!  Wasn't this guy in Nightmare on Elm Street?   and haven't they named a yellow coin from South Africa after him?

Mon, 12/23/2013 - 13:19 | Link to Comment Big Slick
Big Slick's picture

Full context of JustObserving's latter link:

3. Zero Hedge. The mysterious person(s) behind this massive continuous stream of reports and analysis from the loony bin of Wall Street and beyond has a manic edge but accurately reflects the madness of the current situation. Zero Hedge seems to post virtually around the clock, every day. They are relentless and hugely comical, with exactly the right sharply malicious overtones required in these evil times. The characters who infest their comment section are some of the worst vermin in trolldom.

Mon, 12/23/2013 - 13:28 | Link to Comment knukles
knukles's picture

And proud of it.
Someone has to do the truthy work.

Just love it when the pots call the kettle black

assholes

Mon, 12/23/2013 - 15:52 | Link to Comment MarsInScorpio
MarsInScorpio's picture

Big Slick:

 

The reality is that ZH is often waaaaay ahead of the MSM on stories. Long before the NYT et al. picked up the NSA story, ZH was already a couple of stories deep into it.

 

While no news organization of excellence - of which ZH is a member regardless of the jealousy of others - is always correct about every item it publishes in a speculative nature, ZH is correct more often than any other.

-30-

Mon, 12/23/2013 - 12:33 | Link to Comment DaveyJones
DaveyJones's picture

Mr. Kunstler

I'm proud to be a pest

Ps. Calling truthers trolls is pretty fucking ironic for someone obsessed with collapse

Mon, 12/23/2013 - 12:36 | Link to Comment Fuh Querada
Fuh Querada's picture

...so that's why I always read this author as Kuntslur irrespective of the content!

Mon, 12/23/2013 - 12:41 | Link to Comment SuperRay
SuperRay's picture

Now which 9/11 fantasy is he referring to; the one we're supposed to believe - that 19 morons with box cutters overcame the entire national defense establishment? Or the reality that the buildings were brought down by controlled demolition (www.ae911truth.org), by dick Cheney and his pals at the PNAC?

9/11 isn't a distraction, fuckhead, it's the turning point, and until it's addressed, we're gonna keeping rumbling towards 1984...

Mon, 12/23/2013 - 13:03 | Link to Comment DaveyJones
DaveyJones's picture

I love fantasies, let's see there's the:

kevlar green lawn fantasy

it could fit in that hole fantasy

no videos to show you fantasy

BBC cannot foretell the future fantasy

firemen see and hear nothing fantasy

NORAD hath no compass fantasy

broken steel glows for a month fantasy

but send it to China today fantasy

I jut had a double hunch insurance policy fantasy

brother can you spare me your security company fantasy

pulled it" means anything but fantasy

"do the orders still stand" refers to lunch fantasy

Hillary has nothing on this stock play fantasy

five flight exercises could happen fantasy

Leave Pakistan alone, they only wired 100,000 fantasy

and my personal favorite

spend tens times the amount investigating blue dress blow jobs fantasy

 

 

 

 

Mon, 12/23/2013 - 15:22 | Link to Comment YHC-FTSE
YHC-FTSE's picture

That's the Davey I look forward to reading! Nice post mate.

Have a happy Christmas.  I may or may not lurk around zh until the new year so here's wishing you and everyone I've had the pleasure/displeasure of getting to know this year a good time during the holidays. 

It may not seem much, but sharing the daily insanities we observe in the world makes it just a little more bearable.  So thanks to all. 

Tue, 12/24/2013 - 01:52 | Link to Comment DaveyJones
DaveyJones's picture

the same to you and everyone

Mon, 12/23/2013 - 14:54 | Link to Comment resurger
resurger's picture

Sometimes its hard to be a man in the era of slaves.

you are the man Just Observing..

BTW: FREE FRANCIS SAWYER TYLER!

Mon, 12/23/2013 - 12:02 | Link to Comment falak pema
falak pema's picture

awesome prose from a man with a bee in his bonnet.

Mon, 12/23/2013 - 12:09 | Link to Comment YC2
YC2's picture

lol yea hes extra jumpy today

Mon, 12/23/2013 - 12:45 | Link to Comment SuperRay
SuperRay's picture

Yeah, well if you're interested in prose, go to mcsweeneys. I'm interested in the truth. That's why I'm here

Mon, 12/23/2013 - 12:05 | Link to Comment PeakOil
PeakOil's picture

Say what you will about Kunstler, but the man definitely has a way with words!!

"At the end of that live-long day the American people are left in a matrix of lies so thick and sticky that all the de-greasing agents supposedly vested in freedom of the press will not avail to liberate them, and they are suspended like little morsels of winged prey to be sucked dry by the descending spiders of crony capital."

Pretty much sums it up.


Mon, 12/23/2013 - 13:59 | Link to Comment JoBob
JoBob's picture

PeakOil: "Say what you will about Kunstler, but the man definitely has a way with words!!"

  And from the way he uses so many of them in his overly-flowered picture stories, he is apparently being paid by the word.

Mon, 12/23/2013 - 14:04 | Link to Comment Race Car Driver
Race Car Driver's picture

> ... the American people are left in a matrix of lies so thick and sticky that all the de-greasing agents supposedly vested in freedom of the press will not avail to liberate them....

 

Says the man with a grease brush in his hand.

Mon, 12/23/2013 - 12:10 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

I think that the FED is directly participating in the Market.  Even Santelli hinted that they are acting like day traders.  Everytime the market goes down somehow it like Magic suddenly reverses.

No doubt in my mind after watching the tape on Wenesday.  100 points, maybe but 300 is just not credible without DIRECT intervention by the Fed.

Even Steve Liesman said after the rally, well that will "teach" anyone not to go against the Fed.

Mon, 12/23/2013 - 12:10 | Link to Comment firstdivision
firstdivision's picture

85*infinity = infinity = 75*infinity

Taper, what taper?

Mon, 12/23/2013 - 12:10 | Link to Comment Oldrepublic
Oldrepublic's picture

on Ron Paul's reading list

The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market
Mon, 12/23/2013 - 12:13 | Link to Comment fonzannoon
fonzannoon's picture

Dear Ben.

are you fucking kidding me with FB and TWTR? I hope you realize the 3 people left that actually think this is a real market are beginning to think this whole thing is a retarded joke right? Calm it down and tell kevin to put down the red bull and viagra.

Mon, 12/23/2013 - 12:12 | Link to Comment bankonzhongguo
bankonzhongguo's picture

I think the macro action is the consolidation under Basel III. This affects banks as well as companies over USD50 billion in assets.

All the zigging and zagging for the next years is to pare down the banking sector into a lifeboat of primary dealers and uber companies that shall exist outside of law past 2016

What will become Capt Obvious in time is the Fed's balance sheet as the Chinese start converting their UST into physical gold housed on the mainland.  All these Wars, domestic police state and government cheese actually costs something and those trillions will eventually show up at the Fed.

Still.  Go down to the grocery store.  You can't find a genuine pound of coffee for sale - now 12 oz.  A mini bag of chips is 2 bucks a 2 liter of coke is $2.  I am now seeing smaller sized packaging, normally found in developing world markets, on US shelves. Inflation - made by the Fed.

Mon, 12/23/2013 - 13:00 | Link to Comment Jim in MN
Jim in MN's picture

Pasta now 13.25 oz....sometimes the rotini and such is still in pound boxes....gotta check 'folks'.

Mon, 12/23/2013 - 13:11 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

So many seem to be able to brush these facts off as if the details are about as important as today's weather.  I can't help but think that in many cases the reality is too much to consider.  Then it is forgotten and the same folks are ripe for messages of "there is no inflation" -- and then say "see I told you, you worry too much!"

Mon, 12/23/2013 - 13:29 | Link to Comment Overfed
Overfed's picture

Even some nicer quality beers have gone from .5L(16.9 oz.) to 15.2 fl. oz.

I was trying to explain stealth inflation to my BiL the other day, his response? "My wife does the shopping, so I haven't noticed." Unfortunately, it seems a whole lot of "folks" have their heads in the sand.

Mon, 12/23/2013 - 13:31 | Link to Comment Gimp
Gimp's picture

Yep noticed that pasta boxes now range between 12 - 16 ozs.

Bow Ties - 12 oz box

Sea Shells - 16 ozs

Watch your shapes!

Mon, 12/23/2013 - 13:52 | Link to Comment HardlyZero
HardlyZero's picture

Helmut Schmidt says 2 to 3 years.   Good article !

Mon, 12/23/2013 - 12:43 | Link to Comment Save_America1st
Save_America1st's picture

Maybe that should be "Marxists of Lies"...we seem to be overrun by the mother fuckers here these days.  Little commie roaches everywhere fucking things up wherever and whenever they possibly can.

Don't forget:

Zombies are fake...but MUTANTS are real...
 

Fight The

M.arxist

U.topian

T.yrannical

A.uthoritarian

N.efarious

T.reasonous

S.ocialists

 

Mon, 12/23/2013 - 14:48 | Link to Comment smartstrike
smartstrike's picture

Nice of you to deflate the blame...at the end of the day, the oligarchs like David Koch get to keep their wealth. FUCK YOU!

Mon, 12/23/2013 - 12:49 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Just a note. Las Vegas is safe if Hoover dam fails.

Mon, 12/23/2013 - 13:53 | Link to Comment lex parsimoniae
lex parsimoniae's picture

Laughlin, on the other hand.. will be a gonner'

Mon, 12/23/2013 - 13:00 | Link to Comment loveyajimbo
loveyajimbo's picture

The POWERZ just may WANT a collapse.  If they are not able to go to Marshall law... they might just end up hanging from lamp posts.

Mon, 12/23/2013 - 13:28 | Link to Comment Overfed
Overfed's picture

Martial law, dammit!

Mon, 12/23/2013 - 13:46 | Link to Comment headless blogger
headless blogger's picture

++++++++++++++++++++++++++++++++++++++++

Mon, 12/23/2013 - 13:14 | Link to Comment MFLTucson
MFLTucson's picture

The all Jewish Federal Reserve bank of liars!  No different that what happened in Weimar Germany and the result will be the same in the end.  They need to go and I don’t care how they go but, these Mother Fuckers and these Wall Street Whores need to pay for what they did to our country.

Mon, 12/23/2013 - 13:15 | Link to Comment no more banksters
no more banksters's picture

December 23, 2013: banksters celebrate 100 years of absolute sovereignty!

http://failedevolution.blogspot.gr/2013/12/december-23-2013-banksters-ce...

Mon, 12/23/2013 - 13:19 | Link to Comment Peter Pan
Peter Pan's picture

As long as trucks can get to supermarkets things should hold up.

If anything or anyone interferes with this flow then we will see scenes never before seen.

Mon, 12/23/2013 - 13:29 | Link to Comment Gimp
Gimp's picture

Gold and silver people... JPM and the other big boys have been trying as hard as they can to push precious metals down while at the same time filling their vaults with nice sparkling things.

Mon, 12/23/2013 - 13:46 | Link to Comment buzzsaw99
buzzsaw99's picture

hey jhk, any rant against the fed that doesn't contain the phrase "cabal of evil joo bankers" is worthless imo

Mon, 12/23/2013 - 14:55 | Link to Comment Uncle Remus
Uncle Remus's picture

That's not how they train poodles these days.

Mon, 12/23/2013 - 13:54 | Link to Comment headless blogger
headless blogger's picture

Is this guy snickering on the side? What's with the "Merry Christmas Everyone" at the end? Why would a Jewish person do that? That's kind of like a Muslim mocking the entire Jewish population of Israel of the U.S., then at the end saying "shalom everyone".

When we all see who is left standing after their "solution" runs its course, then everyone will know the truth of who and why was behind all of this.

Mon, 12/23/2013 - 14:16 | Link to Comment buzzsaw99
buzzsaw99's picture

shalom goy bitchez

Mon, 12/23/2013 - 14:56 | Link to Comment Uncle Remus
Uncle Remus's picture

Why wouldn't they? Your analogy is a goat blow. Seems in line with the 1st Amendment and all around polite behavior.

Mon, 12/23/2013 - 14:37 | Link to Comment smartstrike
smartstrike's picture

Kunstler is wrong! QE is working so spectacularly that more and more people are wondering why don't the US Government issue its own DEBT FREE MONEY rather than pay it back with interest to looters. Even Martin Armstrong who goes into epileptic seizures anytime one mentions 'TAXES' has raised this point on many occasions.

And I have pointed out that low taxes are a scam and so is deficit spending. The people that should pay taxes are lending money with interest to the Government.

Mon, 12/23/2013 - 14:36 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

"Where is the Snowden of the financial markets who will unmask these actors?"...

Well paid with multiple residences well above the living standards that Ed Snowden is accustomed to working as a "flunky" for a government agency like the NSA. Not that I'm denegrating the Agency one iota, as it spawned the likes of Bill Binney who created the surveillance capabilities "unknowingly" that the world now enjoys.  I wouldn't be at all surprised if the NSA has the "compartment(s)" to control or should I say oversees the periodic adjustments to those trades when they are asked to participate.

Let's face it.

If someone asked you to habitually short the markets when you are told to, and you know what you are doing is unethical and illegal in the first place causing the destruction of many lives including starting wars, I think it's safe to say you gave up your soul at the outset to the alter with the golden idol sitting on top of it when you took the job!

Mon, 12/23/2013 - 14:51 | Link to Comment Uncle Remus
Uncle Remus's picture

The horror.

Mon, 12/23/2013 - 14:54 | Link to Comment vegas
vegas's picture

Nobody has been victimized more by "the spiders of crony capitalism" than the elderly, who have seen savings rate plunge to make living off the nest egg damn near impossible. All so the TBTF banks can have their balance sheets repaired and large bonuses paid out to the crooks who caused the problem in the first place. It would be funny if it wasn't so tragic to many people.

 

http://vegasxau.blogspot.com

Mon, 12/23/2013 - 15:17 | Link to Comment ebworthen
ebworthen's picture

Howard Kunstler - good writing, thank you.

You expressed my apoplectic anger at the FED and the situation with:  far fewer cuss words, some colorful zingers, and creative metaphors.

The longer this goes on the less I like the guillotine and the more I like "burned at the stake" or "drawn and quartered".

Mon, 12/23/2013 - 15:31 | Link to Comment icanhasbailout
icanhasbailout's picture

"You heard it here: not only will the Fed eventually (i.e. soon) fail to taper in any meaningful sense; before this is over they will ramp up the purchases of worthless securities beyond $100 billion a month through every back door and trap door"

 

You heard it here, because I said just that five days ago. http://www.zerohedge.com/news/2013-12-18/fed-tightens-tapers-10-billion#...

Mon, 12/23/2013 - 17:00 | Link to Comment Youri Carma
Youri Carma's picture
US Generic Govt 10 Year Yield 2.92% Now http://www.bloomberg.com/quote/USGG10YR:IND

How to Keep Banks From Rigging Gold Prices
19 December 2013, by Rosa M. Abrantes-Metz (Bloomberg)
http://www.bloomberg.com/news/print/2013-12-19/how-to-keep-banks-from-rigging-gold-prices.html

Greenspan in 1998, before Congress:

"Central banks stand ready to LEASE GOLD in increasing quantities, should its price rise."

http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm

William S. White June stipulated in 2005 ( head of the Monetary and Economic Department of the Bank of International Settlements in Basel ):

"One of the five main purposes of central bank cooperation is the provision of international credits and joint efforts to influence asset prices – especially gold and foreign exchange – in circumstances where this might be thoughtful."

Australian Central Bank 2003:

"Foreign currency reserves and gold are held primarily to support intervention in the foreign exchange markets!"

Dutch central bankster Nout Wellink (CFR member and Bilderberger) always said to his colleagues:

“There are two thing you can lie about as central banker, gold and interest rates.”

Jim Rickards about Gold Manipulation:

“We call it market manipulation the central banks simply call it policy"

Mon, 12/23/2013 - 20:22 | Link to Comment ramacers
ramacers's picture

yet most "decent" people see themselves  "above" thinkin' 'bout something like "the blade" as the remedy.

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