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Santelli Stunned As Janet Yellen Admits "Cash Is Not A Store Of Value"
Intended warning or unintended slip? After Alan Greenspan's confessional admission that
"Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,"
we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that
"cash in not a very convenient store of value,"
seemingly hinting at Bernanke's helicopter and that there will be no deflation in The US ever...
Rick Santelli then sums it all up perfectly...
"deflation is clearly the boogeyman... and the only thing that will save the middle class."
* * *
Yellen: "cash is not a convenient store of value"
* * *
So if cash is not a very convenient store of value... what is? Biotechs? As Rick Santelli explains... this is the scariest thing she has ever said...
Santelli: "deflation is the boogeyman... and the only thing that can save the middle class is lower prices"
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You've been warned
Did Yellen have to tell anyone this? Anyone who buys anything knows that the $50 is the new $20 and that's just the last 10 years.
Anyone who keeps large amounts of cash sitting around is a fool. Savings (in dollars) aren't your savings anymore. It's the government's to slowly take.
when TPTB talk about a cashless society, maybe they mean that everyone owns stocks, gets paid wages in stocks, and uses stawx to buy groceries
And slash don't sing and play the guitar either.
I heard it dfferent. What I think she was trying to say was that traditionally cash isn't a good store of value when rates are higher, as they have always been. Inflation erodes the value of cash holdings because cash in the mattress doesn't earn a return if not loaned out. But with Europe going to negative interest rates, the logical thing to do would be for people to hoard cash, because deflation equates to purchasing power going up. Instead of earning a rate for parking cash in the bank (positive interest rates), people are being charged a larger fee to keep cash in the bank (negative interest rates). And she said she's surprised more people aren't hoarding cash.
Which means she's surprised how economically dumb people are about the price of money and possibly considering doing the same in the US.
Did I hear it wrong?
Same thing I heard. Surprised at the lack of demand for cash when NIRP imposed.
you guys r talking about hoarding worthless debt based currency...
doesnt mattter if its in the bank or under the mattress...
receiving negative real rate of return on it or being counterfeited to ZERO...
ITS STILL WORTHLESS PIECES OF PAPER.....
doesnt matter what the fuck she meant....
just sayin.
As long as the liquor store trades it for booze it's worht that.
Gold should be up $200/ounce on that sentence alone.
Other news today, in a recent poll, Taylor Swift was voted a more influential world leader than Barack Obama... The people don't care, they really don't give a rat's pattootie... Future society is doomed, but they will have BRAWNDO!!!
boo hoo. gold gold gold. fiat this fiat that.
https://www.youtube.com/watch?v=skqfxp2-RpQ
Have you been living in a cave for the past 50 years?
Minimum wage in 1963 was five silver quarters. About 17 dollars in today's value. And those 5 quarters would buy you goods that would cost $17 dollars today. It was actually possible for a soda-jerk to raise a family back then, if he scrimped and saved.
One hour of minimum wage today will get you goods worth $0.27 in 1963.
So I took my calculator out about 15 years ago trying to figure out what an ounce of gold was worth.
I pressed the enter key and went......damn that can't be right.
Yes.....I went and bought some gold.
You felt the Ecstasy of Gold....
https://www.youtube.com/watch?v=1-rHdSWZLpQ
I think Yellen is telling us we should be taking our money out of the bank and stash the cash!
I would convert it before you stash it.
No idea where this came from but:
Only after the last can has been kicked,
Only after the last fiat has crumbled,
Only after the last banker has been hanged,
Only then will you find that money cannot be eaten...
Only then will you find Jon Corzine in a hot tub with a Swedish supermodel...
She's not that smart.
And Now For The Electric Version https://www.youtube.com/watch?v=y-Mh1K5-VSQ
Add up the total taxes paid in 1963 by that minimum wage worker and today. Disposable income is far less now.
FICA
Medicare
Sales Tax
Gas Tax
Other business taxes passed on
Yours is an excellent point.
sschu
Why would you make a youtube video? The fact that you lump bitcoin and gold together shows that you have a lot to learn there little buddy. Tell Congress to take the power back from the banks? Are you serious? Why don't you just go outside and have fun on a swing or something while the adults talk about adult stuff. Holy moly.
Idiocracy was a documentary that grossly underestimated how long the decline would take.
http://www.infowars.com/dystopian-movie-idiocracy-predicted-americas-cul...
BRAWNDO, its got what plants crave. Electrolytes!
It's the Thirst Mutilator... Oh Wait!
Brought to you by Carl's Jr. I get paid for saying that.
How much?
Curious
in so many ways
She couldn't be a worse president, she's decent looking, and she's got a lot of class.
Swift 2016.
Plus ~ She gets invited to perform at all the best parties
https://www.youtube.com/watch?v=JTwRRwUb4IE
http://vigilantcitizen.com/latestnews/taylor-swift-at-the-brit-awards-ye...
The one thing about living in Santa Carla I never could stomach...was all the damn rituals.
That's just because Taylor Swift has a solid foreign and domestic policy agenda.
I think that Taylor Swift would be a excellent choice for president, very much unlike Clinton, Bush or that Canadian who the republicans are joking around with.
The problem is that even if you guys were lucky enough to get someone who is smart, talented, well spoken, and very beautiful, Then she would be the person in charge of a rotten system controlling a nation that is already sipping on Brawndo.
Maybe we need to change the system so it will look attractive to people who are interested in being involved in politics for the right reasons.
10 20 years of 90 percent unemployment is what it will take to pull out of that nose dive.
yeah as long as a dollar doesnt buy u and ounce of Silver or Gold its worth that....
keep your fucking booze...
1970 a fifth of Jim Beam was 5.00 at the NCO store. Now I pay 35.00.
A carton of smokes at the PX for me was 2.05.
ITS STILL WORTHLESS PIECES OF PAPER.....
I agree with you Kaiser...keep on stackin...
BS. Paper is made from wood. Wood contains calories. Ink contains calories. Why do you think the folks from the Weimar were burning this paper ? Obviously it had some value. They could wipe their ass with it and then burn it to keep a little bit warm. Anybody who thinks paper currency is worthless is a joker.
Currency isn't very good toilet paper - clogs the plumbing
http://www.nytimes.com/images/blogs/freakonomics/posts/Zimdollars.jpg
Not to worry.
Janet exclusively uses a FEMA Express card.
Don't leave FOMC without it!
https://www.youtube.com/watch?v=23Pma0SK_y8
personally, Wait What prefers bottle caps. they are in short supply, he hears.
"so many bottle caps, mr. scrooge, you're the richest duck in tralala"
https://www.youtube.com/watch?v=yS1_fwGUtdY
Surely the preferred method would be to burn it after wiping ? Why clog your bog ?
indeed. people shouldnt discount that even toilet paper has a utility ;)
The central bank in Zimbabwe threw in the towel when they realized they needed to sell blank currency paper back to the company in Germany they bought it from, in order to meet employee wages.
Actually putting a one and a bunch of zeros on it seriously lowered the paper's value.
That is incorrect. The more ink that is on the paper the higher it's calorific energy content. That would mean the paper burns either at a higher temperature or it will burn for longer , thus releasing more heat energy. This is known as basic physics buddy.
You are assuming they use soy based ink, I think.
I suspect that, near the end, they were running newsprint through an ink-jet.
Paper Currency IS
worth less
than almost anything else. Is this clear enough for you ?
Worth Less - got it?
If it was worthless (as you say) it would be rejected at the local Supermarket......
It isn't so you are wrong and all the hard metal men as well....
(btw I have Gold and Silver)
I just can't take the dumbness of ZH comments about 'The ONLY MONEY IS GOLD AND SILVER!"
Fiat is a fixed price by the Govt...ala Bretton Woods agreement......
When the Govt 'rigs' or 'fixes' anything....it doesn't last.....neither does Gold & Silver if fixed.....
Learn history and you won't sound so dumb.
true nuff, gold & silver arent the only money. but they have a combination of properties that makes them - in greenspans words = the premier currency
If it was worthless (as you say) it would be rejected at the local Supermarket......
It isn't so you are wrong and all the hard metal men as well....
(btw I have Gold and Silver)
I just can't take the dumbness of ZH comments about 'The ONLY MONEY IS GOLD AND SILVER!"
Fiat is a fixed price by the Govt...ala Bretton Woods agreement......
When the Govt 'rigs' or 'fixes' anything....it doesn't last.....neither does Gold & Silver if fixed.....
Learn history and you won't sound so dumb.
I think it's a good idea to have a stash of cash for when the system pukes (and there will still be sheep who will only take cash - even if it's toilet paper at that point) - but hoarding it isn't a good idea....
I am a recent fan of cash. and diamonds. with a disruption, how do I make my investments into cash?
You guys heard it right... she's surprised that europeans aren't hoarding cash (yet)...
...but consider the position of the average european citizen - their poorly-conceived currency union is coming apart at the seams... Greece is preparing to pull the pin on the EMU grenade, and Portugal/Italy/Spain/France are next. So hoarding a dead/flawed currency poses a terrible conundrum - lose value w/ bank deposits (NIRP) or hoard a timebomb currency.
Perhaps Yellen should not be so surprised, but obviously she didn't think about the 'real' position of the average european citizen, which says alot about her (lack of) intelligence and inability to empathize with the non-elite. I'd suggest she take a course in behavioral/austrian economics, but that would be just as naive as Yellen's surprised reaction here...!
Many smart europeans are actually taking a third path - buying german stocks. This is seen as a way of 'buying' d-marks before the inevitable Euro-currency collapse... pretty clever, but also causing wild inbalances and posing future problems. If all of Europe continues to buy german stocks, then ultimately it will be germany's continent to support/defend/govern irrespective of national borders, governments, etc. An accidental 4th reich...
Nope you heard i exactly right , same way I heard it , she is actually being quite straight forward and rational, yes why are,nt more people taking their cash out of the bank and just hoarding it . You are,nt getting any risk reward via decent interest rates and with negative rates you are just plain and simple losing money. Most people just are,nt paying attention and or thinking (cos flouride ,vacines ,TV "news", celebrity,sports, etc) I met an American on hols a couple months ago, we had the building 7 discusion, he had never heard of it , he said that could,nt have happened "because Fox news would have told him", I was literally dumbfounded ! America , LAND OF THE FREE(DUMB)
The steel structure falling from the collapse of the twin towers tore a twenty storey hole in the base of building 7. That damage was significant enough to destabilize and initiate the collapse of building 7. You need to spend time reading a broader set of accounts and information before drawing your conclusions.
The fuck are you smoking?
Pass it around bitch.....you know the rules.
No bogarts allowed.
https://www.youtube.com/watch?v=WSFsyxaCQrQ
That account is not politically correct. History will record 911 as an inside job by Bush and that the towers and building 7 were detonated by the government to legitimize a war with Iraq. The planes were actually cruise missiles because every schoolchild is taught and knows jetfuel cant melt steel beams.
/sarc
story.
that kind of damage may - and only may - cause an ASYMMETRICAL COLLAPSE. Watch the videos. Anything asymetrical about it?
no no it was office fires per NIST. Or are you in agreement that NIST is full of shit? That would be a start and we can go from there.
LOL, words are powerful........ but for you ,it is a complete wast of time....
The kinds of collapses we see of three buildings on that day, three steel frame high rises, are impossible without some form of controlled demolitions. All three buildings fell within a second or two of free fall speed (calculable by a simple equation and by counting). They fell following the paths of most resistance, into their own footprints. There were visible explosions (reported by cops, reporters, and firemen, too), and the resulting rubble consisted of only very small pieces. There were visible pyroclastic flows. And molten steel was found under the rubble over a month later. Jet fuel can do none of this. None of it.
The only people today who believe the official story are morons or paid trolls. And it's a great litmus test. And it's something we can never forget but instead must constantly discuss, regardless of whomever it might irritate.
Wrong! Even the "official" NIST story doesn't say that. It says it was brought down by fire, which is unprecedented btw.
I see you aren't a tin foil hat person. Good for you.
Introducing 9/11 into any discussion at this point simply serves as a vehicle to cloud that discussion. It is an emotional button that automatically fogs rational thought ending any rational discussion. Aside from its emotional impact, the sting of the thing has pretty much run its course. The statists have used it to champion the complete shredding of the Constitution. The conspiracy theorists have a myriad to story lines and book plots. We all believe, while most of us don’t know anything. Therefore no rational discussion can come of this. No new information will be divulged.
Having worked for one of the darkest bureaucracies on the planet for more than a decade and having been chewed up and spit out by that bureaucracy I have come away with some insights. It is a natural function of our brains to ascribe order where there is none. Most of us give way too much credit to infighting fiefdoms that are more concerned with bagging the hot secretary and sacking their rivals than fulfilling their statutory obligations. In retrospect it looks like a well-oiled plot when more than likely it was the consequence of people at the right place and at the right time dropping the ball.
http://www.showrealhist.com/recDJIAtoRD.html
NIRP is testing the liquidity preference of fee based "electronic money" versus the "conversion costs" involved when you take cash from the mattress and deposit it in a bank, so you can pay your electric utility bill fashionably, from your smart phone. Not that there's anything right about paying to keep your money in a bank. The footnote is as always, to find new ways of saving banker ass by screwing you in the same. Yellen is an idiot, because her evaluation is wrong: we have inflation AND CB induced negative interest rates, not negative interest rates because we have deflation. What a jackass.
Bingo! Biflation economics 101. Insidious inflation AND deflationary forces. CB negative interest rates are only 1 dimension. Crumbling buying power of currency, negative pricing power of labor, declining value of traditional stores of wealth, commoditization of services, disintermediation and globalization are major deflationary forces. Value of nearly everything sinks.
Inflation and Deflation are not mutually Exclusive.
Good Point.
also possible, a disruptive event that takes the markets and as a result all stores of value, and makes us unable to extract value from alleged assets. ready cash on hand is only a reasonable adult behavior.
She expects negative rates to induce hoarding.
Then she must suspect that low rates...if not negative...promote hoarding as well.
SO...maybe she should look at the VELOCITY OF MONEY chart and see that LOW RATES...rates that are
TOO LOW...are a deterent to economic activity. We have several years of empirical data to demonstrate that fact.
OR, as suggested...negative rates make everyone run into STUPID places to put money...mattresses and companies with high multiples.
exactly, Janet and Co are watching the lack of EU public's non-reaction to NIRP and getting there juices wet at the idea of a new FED policy tool.
Did you hear it wrong, nope-1004? No, Janet got it wrong.
What Yellen means is that destroyed currency is not a good store of value.
Interest rates assign a market price to money. When central banks continue large scale printing out of sync with the supply and demand of free markets, they destroy the exchange value of money. In short, they destroy sound money markets and hold down any approach to sound money. A major reason the Soviet Union fell was it lacked a price determinant.
"Because the interest rate is the price of money," Ron Paul said, "manipulation of interest rates has the same effect in the market for loanable funds as price controls have in markets for goods and services."
Destroy trust in the nation's money and it will come back and sweep away the controllers. The demand for a trustworthy sound medium of exchange in modern commerce is what built Western Civilization.
“the only thing that can save the middle class is lower prices"
Try “ the only thing that can save the middle class is a dramatically lower price of government”.
..and real estate taxes are a price of government, too.
The only thing that can save the Middle Class is a Revolution.
The only thing that can save the middle class is a Revolution in their Thinking.
If that doesn't happen they'll just burn down their own neighborhoods and then fall for the Next Big Scam that comes along
I hate to sound like a doomer, but there have been a number of indications that this may well be the big plan (or at least an unavoidable consequence of poor monetary policy) - i.e. city living is over rated. From the pachinko machine showing the Fed crashing on the cover of the Economist, to a number of articles and drills surrounding a September date, to discussions of capital flight Eastward, and the introduction of newly formed banking houses, etc.. I think mid Sept. is one of the old school calendar important dates - check maybe a Jewish calendar, for example, or possibly ancient Egyptian holidays. I aint throwin' Jews under the bus, just sayin. Now you've seen people like LeGaurde with her hand symbols spittin' out the numerology stuff. Just theatre? Probably not... Cities are neat to visit, but really, the country is much prettier generally. More specifically, if foreign tribute falls off dramatically (King Dollar diving) the welfare programs in the cities may be unsustainable - not to mention sh*tloads of government agencies... Then mad people with plastic cards that no workie, induced by a surplus of stomach acid, may start behaving poorly. Maybe there would even be nothing on the shelves in such areas for them to buy? I don't personally know anybody that works for FEMA and such, maybe the contingency plans are published? I know there is oil in the tank farms, just hope there is grain in the silos.
Why can't the gov just print more to keep those cards working? What's to stop it?
They can actually, remains to be seen how benevolent they actually are. 95% serf type benevolence I suspect - i.e. The capital held by the 1% and above would not be utilized to help the underlings, just a tax and legal structure that makes everyone below a certain cut line the same (moar fairness type commie deal)
yup, only, their track record on adding crap to foods is a hindrance to me granting them the "benevolence" award. Putting aside their epic trail of murder, the messing with food is a attack we CAN bypass if we are willng to see it and shop avoiding the poisons.
"Why can't the gov just print more to keep those cards working? What's to stop it?"
They are already doing that Einstein.
What the fuck did you just say?
Of course this was INTENTIONAL. Cash is not a good way of saving wealth.
The FED has been trying to ignite INFLATION. They have TOLD YOU THAT SO MANY TIMES.
When they TARGET an INFLATION RATE then their INTENT is NOT to have Cash be a store of wealth.
They WANT YOU TO SPEND.
They NEED YOU TO SPEND.
They need you to spend your CASH on everything and anything.
They cannot TAX DEAD CURRENCY. They cannot even INFLATE THE VALUE AWAY, TO EXTRACT THE VALUE FOR THE GOVERNMENT. That is what they have attempted to do. That is because the Currency has been held in reserves and not distributed to the masses who are tapped out. Thus it has FAILED as M2 Monetary Velocity is NEGATIVE SLOPED...DECLINING.
Yes they can INFLATE the CURRENCY SUPPLY. But EVEN THAT has failed to make people SPEND. They made the people too stupid. The people cannot connect that an increase in Currency should make their currency less valuable.
They are both inconsistent and schizophrenic. Their LOUDSPEAKERS program the masses telling them everything is fine. But the same LOUDSPEAKERS DO NOT TELL THEM that they need to spend everything that they have because everything is not fine and price inflation is right around the corner. That is how to get everyone to spend.
Of course it would be helpful if the masses actually had something to spend in the first place...What YELLEN does not get is that the Masses are fucking BROKE.
UNLESS THERE IS DIRECT DISTRIBUTION OF THE CURRENCY INFLATION, through WORKFARE (Gov't Contracts) or WELFARE, the SPENDING WILL NOT INCREASE. In fact the spending will decrease as the ranks of unemployed and underemployed swell and their savings are DEPLETED...which they have been.
The FED, with all of the OE, has been cutting their own throat. It is GLORIUOUS TO WATCH THEIR OWN DESTRUCTION. It demonstrates how UTTERLY STUPID AND SHORTSIGHTED THESE FUCKERS ARE. They cannot plan an economy. They are POWERLESS TO PLAN SHIT...especially when the Masses do not cooperate. Then their "THEORIES" go to hell as THEY ARE NOT THEORIES, BUT PLANS.
Yes DEFLATION WILL KILL THE FED...AND THE US GOVERNMENT. The US Government becomes INSOLVENT when it cannot garner REVENUES to FINANCE ITS DEBT. Without public spending there are NO TAX REVENUES.
Nope. Deflation will KILL, not only the US Government and the Federal Reserve Banking System, but it will also kill many of us.
The Middle Class is DEAD. THERE IS NO SAVING OF IT. NONE.
STOP SPENDING AND STARVE THE BEAST, THE FSA, AND THE MIDDLE CLASS (an unfortunate consequence as they are already walking dead zombies).
Nice analysis, except for the screaming.
Hurt your ears did it?
Don't worry, you'll get over it.
Good reply Tom
Nice analysis, except for the screaming.
So you came to Fightclub seeking zen?
Zen fisticufs. it's a martial art discipline.
Detracts from messages, s'all. Love the love THO.
I enjoyed the screaming.
It reminded me of modern nu-metal bands.
"Nice analysis, except for the screaming. "
The man is screaming in existential agony. He is watching a whole culture die and he cannot bear it sanely.
The ones who are sane are the ones screaming in mortal fucking terror that cannot be silenced.
The quiet ones are doomed, many just walking around half-alive and without hope or horror or hatred.
You are so sensitive and civilized that you are complaining about 'screaming' even though these are just silent fonts on a screen...
The alarm for the end of this iteration of civilization is wailing and you can't hear it through your oh so sensative and civil facade of 100% self indulgent BULLSHIT.
He is watching a whole culture die and he cannot bear it sanely.
He just figured out what.......yes we can......really means.
When the backtrack of "Yes we can" is "Thank you Satan" I kinda already had that figured out.
https://www.youtube.com/watch?v=jqALdkTArqs
Ha, Ha, Ha! Kkkkkkkkkkkkkkkkkk!
Always said the dollar (US $) will serve as the confetti at the carnival of Rio de Janeiro. Kkkk.
Japan is a rock on the shore of Ocean lifeless.
A huge factory without sex and these radioactive day.
Europe is a catchall.
If the US would like to save anything within its territory, that time is gone.
Now is War!
I'm sorry for you.
: - /
If the President of the USA plays football with Putin do you really think that you will live through it?
(The briefcase handcuffed to that US Naval Officer's wrist, the attache who is NEVER more than TWENTY FEET away from the President, you know, the briefcase with the US Armed Forces MIRV warhead tipped ICBM and SLBM LAUNCH CODES...IS THE FOOTBALL...)
Can you imagine actual snowfall in the Amazon jungle? Because that is how cold this planet will be...when the Solar Radiant Energy is blocked by the clouds of soot and smoke from the resultant Northern Hemisphere fires suffered from the aftermath of a Global Thermonuclear Holocaust.
Global Thermonuclear War is a game that everybody loses. THAT MEANS YOU.
A Strange Game.
The only winning move is not to play.
How about a nice game of chess?
https://www.youtube.com/watch?v=s93KC4AGKnY
Speaking of Hope-n-Change, I was kinda hoping a few "folks" in the military had developed a very deep distrust of Barry by now and changed their minds, what with his international adventurism making the Deep State diplomats & military look so bad in the eyes of the world and even domestically, him not considering the fact he is only the representative of a co-equal branch of government that...shall we say...they "fine tuned" those codes just a little bit.
Wouldn't it be hilariously funny if the order was given and the only thing that went off was party poppers full of confetti?
Morning all ;-)
Morning to you too,
It would be best is the target side also had party poppers full of confetti popping off as well.
What if they threw a war and nobody heeded the invite?
"No. I am sorry. I will not be attending or participating. I have made other plans...like living for instance?"
Thank you for that Tall Tom, I wish you wrote for a wider audience.
ZH is the 2,052nd largest Internet Website measured by traffic Globally.
ZH is the 1115th largest Internet Website measured by traffic in the United States
http://www.alexa.com/siteinfo/zerohedge.com
Considering the amount of websites that is huge.
I also will use YouTube and Kitco.
But I must thank the troll, warrenbuffetjr, over at kitco.com, for inadvertently suggesting this website to me.
(Actually he was attempting to ridicule me for posting here. What he did not realize is that I did not even knew about this place...That was great!!! So I visited. Then I thought...Hey...I like this. More freedom without active moderation and without too many restrictions? Larger audience? More impact? Yeah! Great! Thanks warrenbuffetjr. Your bosses have paid you well.)
At times the trolls actually do their bosses a great injustice as their tactics backfire..
Here is Kitco's ranking
http://www.alexa.com/siteinfo/kitco.com
Now which is better?
Do not misunderstand. Kitco.com was a fantastic learning experience. I have nothing but respect.
In fact I need to repost a Poll over there soon.
But this is home, sweet home for now....as long as I am welcome by my host. Thank you Tyler.
; - )
"After fighting, everything else in your life got the volume turned down."
rock on Tom
The political and economic elite live in a parallel universe with no understanding of the thinking of those they consider the unwashed. The risks of holding cash in your mattress as opposed to the bank has shifted over the past few years. Holding the money in a bank account provides no measurable return yet leaves you susceptible to the old adage possession is nine tents of the law. Gold likewise. The uninformed live and will die by the convenience of the electronic transaction which will work just fine until it doesn't and it has been generations since it hasn't. On the other hand to hold your own assets requires you to take on the risk of securing them. That along with a desire for a return and convenience kept people in the system. The risk rewards equation has been slowly shifting.
Man I dig your analysis!!!
It reminds me of the 70's and inflation in the exact opposite way... spend, spend, spend because tomorrow prices were only going to go higher. It forced Volkers hand to put the brake on.
Now cash needs to be thrown into the streets to keep (some) prices up.
The thing that bothers me about this though is that not all prices are dropping. I would have expected across-the-board price cuts because of declining demand.
$7 Dollar Hamburger and Fries, if this is the cost then a dinner or lunch is $10.
That is inflation.
Drive around my small city in the middle of nowhere. This is the Price.
I assume that in the Big City you pay for $10 Hamburgers and a Steak costs $30-$40.
Inflation is fully accomplished in the USA.
- Well I don't pay for $7 Hamburgers as I am too cheap
- I don't pay for $20 Steaks as I am too cheap
- I like to see $5-6 Dollar Meals
There is truth about Inflation in DoD, MIC, Federal Government, Health Care, Education, Housing, Property tax, Credit Cards, most federal government contracts, probably prime dealer fees to the FED, Pork, Beef, Chicken, Water, Soda, frozen dinners, potato products, corn products, and all convenience items.
Deflation is real and a risk... but not so well known to me.
Products in Kmart & Wall Mart & Discount Stores are priced lower due to slave wages overseas...
It is really HARD TO PAY $7 for a Hamburger when you are fucking BROKE.
That is why, in spite of rising prices, GROSS SALES REVENUE is in DECLINE.
That is why the Corporate Heads are committing FISCAL SUICIDE through buybacks of their own stock in order to support the illusion of "gain"
It is a CANCER, eroding any REAL VALUE, but "keeping up the front".
Bcause it is ALL ABOUT IMAGE and has NOTHING, ABSOLUTELY NOTHING, to do with SUBSTANCE, as that is what these NARCISSISTIC, PSYCHOPATHIC. CORPORATE EXECUTIVE OFFICERS ARE ALL ABOUT.
Agree Tom, agree! But inflation in all necessities is undeniable. That's what I predicted early on in ZH-land: rising cost of living, cost of working (commuting, eating, etc), cost of home ownership and cost of doing business. Combined with sagging buying power and stores of wealth for the middle class. Biflation
Like the Stagflation of the 70's only on steroids. Attacking the middle class on two fronts. Price increases while destroying the purchasing power of their stagnant wages. Mandates like Obamacare and carbon credits to keep them from somehow accumulating any wealth. War will be next because idle hands are the devils workshop.
Guy I know made $15 an hour in Seattle making hamburgers for about a week.
Then they closed the restaurant.....not really sure why.
We were shooting the breeze last night by the fire and Mrs. chunga said she'd like to make what we call "Italian Grinders". Some people would call them "subs" or something else.
To make these we'd need to go the the market and buy sliced ham, salami, balogna, provolone...whatever is your taste...maybe 1/2 lb each. Then some lettuce, tomatoes, onion and some bakery bread. If we shop carefully and don't get anything premium, that's probably going to be ~ 40 bucks not counting condiments, drinks and gas getting there! That would make 4 sandwiches @ $10 each. This is tasty but by no means "gourmet" dining.
We'll still do it because we like to, but fuck off, it's way cheaper to buy some gross fast food shit. If you don't have the money that's what you have to do. A trip to the grocery store is mind-boggling. I have no idea how people with a bunch of kids manage to do it.
Hamburger Helper sans the meat ala cousin Edidie....."Sometimes they're so bad can't even sit on the toilet"..
what the hell do they care? Their yearly salary is more than the entire net lifetime earnings of the average person. Stay on the board for a couple years and your 5+ million will be enough to live comfortable off of even with the ten year under 2%
Great reply, Tom.
As for the screaming I hope it was loud enough that a few bystanders are saying "what did he mean by that?"
TT, your comments are usually pretty nutty.
You freakin nailed this one, hat tip to you, sir.
Tom, they try to appear like they are angling for it, when doing everything they can to mask the indicators its happening.
feet, meet moving rug, when its time
I don't know what it is but I notice more and more zombies waking up all the time. Perhaps it's the nonsensical nature of our "humanitarian efforts" on the globe. Perhaps being broke is a wake up call. I don't know. But it's happening.
Too little too late I'm afraid.
http://www.showrealhist.com/recDJIAtoRD.html
"..and real estate taxes are a price of government, too."
THe price of pension promises made by people who are nameless and long gone..
Price of gas goes down and government wants to tax it more..
Mortgage rates go down, and localities find it a convenient time to raise real estate taxes..
Govt is always at the ready to stick it to your
Carbon Credits... eventually.
~"when TPTB talk about a cashless society, maybe they mean that everyone owns stocks, gets paid wages in stocks, and uses stawx to buy groceries"~
Oh, do you mean company scrip? It's been done before...
https://youtu.be/J2aqvKY6zLc
Basically the bank bailout thus far have cost us 3 bucks for every one you had.
That fembots head will explode.
Lordlady,
"Anyone who keeps large amounts of cash sitting around is a fool...." I agreee. What do you (personally) save in...as I presume you are not a fool.
F22
.
Exactly. Smarten up people. The fed has a 3% inflation target, so obviously cash is a terrible storer of value. I hate Yellen, but in this case she is stating the obvious.
Methinks she leaves out a very important point though.
If you're wodering what this could be, after just a few moments of reflection on the plight of the common man the answer is obvious.
Boating Accidents!!!! Holding gold, (and silver), is important, but not unless you clumbsily go boating frequently. So here is my advice, (since sistah Yellen ain't a-preachin' it):
Long boating accidents. ;)
Guess she didn't get the memo...
Never go full retard.
Ask Sean Penn....I am Sam......he went home empty handed.
This shit just gets Weirder and Weirder....
Grandma Greenback Gone Wild
Yep, she went full retard
I said it
Grandpa Be Trippin'
But what the fuck can you expect from the Klezmer Palace?
"You've been warned."
Strictly by accident.
This was no accident. People act on what the FED even hints at doing. This was a clear, and concise, statement.
Is it me or are her mannerisms just plain fucked up? She seems out of it.
Isn't it funny that so many think TPTB are some all powerful force -
But if you Really look at them, you see a bunch of old farts and geeks.
If the majority of Humanity ever figures that out -
That's the thing, HA. They AREN'T omnipotent, they have just benefited from a historically unique convergence of several factors that allowed them to take advantage of their position. They have profited beyond their own imaginings, but now find themselves painted into a corner.
This isn't the artful unfolding of some Rothschildian master strategy...it's as-libbed Keystone Cops, and it all ends with chaos, destruction, and everyone getting a cream pie in the kisser.
no - youve been burned....
"Destroyin' The Dream" Est. 1913
Grandma Yellen's posionous death cookies - baked with spite and malice for would be middle class American children. Yum Yum. Enjoy with a mad cow burger, chase with a delicious glass of Roundup (warning: may be habit forming).
They hate everything they cannot control and track -- which now includes Cash @ home and PM -- when it becomes part of the Parallel Economy.
They want you in assets they can tax or confiscate: RE in the US, bank accounts, 401k, IRA, Wall St.
right you are Kirk2NCC1701 NAILED IT!!!!!
Kirk missed the lack of measurement of War Damages, the Cost of the Iraqi War, the Human & Economic Cost of US Wars, the Loss of Businesses, Loss of Culture & Tradition, Loss of Family Traditions, houses, businesses, skills to earn a living, all the Disease, Rapes, Refugees, Complete loss of Wealth by Families, and the Murder that occurs on the road or in Refugee Camps.
- US .gov doesn't measure the effects of war
- US .gov no longer measures the GINI Coefficient, Wealth Inequality
- It doesn't measure the loss of Wealth from the 2005-2009 Global Financial Crisis
- It doesn't measure the Transfer of Wealth in QE, LIRP, or TARP, or FED Loans and special programs, buying toxic assets
But Kirk is a smart guy he probably knows all this.
Indeed, was should have its own negative GDP, yet since it inflates government spending it typically results in a GDP boost.
Welcome to the crazy planet.
Same old shit.
The Roman Empire burned when they tried to pay their barbarian mercenaries with silver-plated bronze slugs.
All those things are still completely trackable - the data was still recorded. What has changed (even beyond what you state) is what they tell the public.
5.x unemployment... bitch please.
2015 Yellen: Cash is not safe
2009 Bernanke: Gold is barbarous relic
Do the opposite of what they say and be happy. Keep stacking and withdrawing.
Cash is good unless they initiate the reset and a currency reform but that would be their own undoing.
I think you are right--trust in their good intentions toward you is a fools errand.
"cash is not a very convenient store of value... for us"
I agree with her: cash is not the best store of value but phyzz is.
ZH hit on this the other day pointing out that the amount of greenbacks in circulation is miniscule compared the digital currency. I think there will be a window during the collapse when fiat will still hold some sway because we have a century of conditioning that has taught us that green backs are a store of wealth and a means of exchange for goods and services. So a guy with a briefcase full of hundred dollar bills might still be able to secure a seat on the last flight out.
Fear of declining purchasing power will increase the velocity of fiat to a point. Complete loss of faith in the purchasing power of the dollar would require a systemic failure that crushes all commerce, destroys the social order and brings on the Zombie Apocalypse.
http://empcommission.org/docs/A2473-EMP_Commission-7MB.pdf
Should the lights go out initially it will all be about commodities specifically beans and bullets. But once the lights start to come back on green backs may resurface along with gold, silver, tin, nickel and copper.
Prescheduled bank holiday next Friday.....right?
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