Food prices rise by most in 36 yrs, yet Ben Bernanke keeps printing hundreds of billions of dollars

[Cali_Democrat]

It looks like Ben Bernanke's attempts to pump up the stock market and re-inflate the housing bubble are failing spectacularly. Not only are food prices rising out of control, but new housing starts at a 27 year low.

Hey Ben, what did you think was going to happen when you print hundreds of billions of dollars and toss them from a helicopter?

Ben will tell you that inflation is under control. Don't buy his bullshit. He looks at core inflation which excludes food and energy prices.

http://www.telegraph.co.uk/finance/economics/8386246/US-food-price-rise-is-steepest-in-decades.html
US food price rise is steepest in decades
Food prices in America soared at their fastest rate since the 1970s last month, a sharp reminder of the pressures facing the majority of consumers in the US.

By Richard Blackden, US Business Editor 5:46PM GMT 16 Mar 2011

The cost of producing finished foods jumped 3.9pc last month from a year earlier, as harsh winter weather exacerbated the already increasing price of many basic ingredients used in food. The increase was the steepest since November 1974.

With oil prices having spiked on the political upheaval in North Africa and the Middle East, energy costs were 3.3pc higher in the month, according to a report on producer prices from the Labor Department.

Ben Bernanke, chairman of the Federal Reserve, insists these sharp rises in costs will prove transitory and will not spiral into a broader price increases across the economy. Core producer prices, which strip out food and energy, climbed just 0.2pc in the month and were down from January's level.

Ben stated himself in an op-ed that one of the main goals of his money printing was to pump up the stock market and create a 'wealth effect'. Supply-side economics at its finest.

Of course most of the gains in the stock market go to the wealthy while food and energy costs make up a large portion of the budgets for poor and middle class Americans. They will be hurt the most by rising food and energy prices.

[rfranklin]

1. Hey the cost of iPads is way down!

NY Fed Chief’s iPad 2 Comment Irks Queens Audience

The central banker told the audience “I certainly acknowledge food prices have gone up.” But he added some prices are lower and noted “Today you can buy an iPad 2 that costs the same as an iPad 1, that’s twice as powerful,” as an example of favorable price dynamics. His example was greeted with widespread grumbling in the audience, in a display of conspicuous discontent unusual for a Fed speaking event.

http://blogs.wsj.com/economics/2011/03/11/ny-fed-chiefs-ipad-2-comment-irks-queens-audience/

[DJ13]

4. They're also thinner, so they're less absorbant

:yoiks:

[leveymg]

2. 5th rec. Bernanke like Bush Sr. probably hasn't seen a supermarket scanner.

Not for years, anyway. Why should he care about the cost of a bag of groceries or a gallon of gas?

[Denninmi]

6. Yup.

Our new Republican Gov. Rick Snyder said that inflation wasn't a problem for people anymore, in an interview with WXYZ-TV 7, Detroit, the day after he announced plans to tax pensions, eliminate the Earned Income Tax Credit, and raise other taxes on low and middle income people to the tune of $170 million, and give tax breaks to corporations amounting to $180 million.

Something is sure rotten in Denmark. It makes me very glad I plant a big garden every year and preserve a lot. I'm going to dramatically increase what I plant this year in staples like potatoes, winter squash, corn.

[DJ13]

3. Supply-side economics at its finest.

Its a shame the money freely handed out wasnt targeted towards the lower/middle classes.

If it had been we would already be out of the recession, AND the same wealthy jerks would have eventually ended up with most of it anyway, so they wouldnt have anything to cry about either.

(Though Im sure they would have cried simply because they want all the money for themselves without doing anything for it.)

[unblock]

5. printing money is the right thing to do, for now, TEMPORARILY

only once unemployment is under control will it be proper to constrict the money supply.

the problem i have with the fed and congress is that the printed money is going to the wrong hands.

they should be finding ways to get the newly minted money into the hands of poor people rather than into the hands of people who already have more than they know what to do with.

[PBS Poll-435]

7. What about the cost of fruit and vegetables destroyed by the weather?

:shrug:

[Cali_Democrat]

13. That can probably account for some of the increase in prices, but...

We're talking about the largest increase rate in 36 years.

Ever since Ben announced QE2 was coming last September, investment banks, hedge funds and sovereign wealth funds have been taking the printed money they get from selling their bonds to the Fed and have been putting it into commodities....

http://www.bloomberg.com/markets/commodities/futures/



They're seeking a high rate of return in commodities and equities because interest rates are basically at zero.

[MrTriumph]

8. If Pres. Obama would confront China, Chairman Bernanke wouldn't resort to QE2 (printing money)

QE2 is an attempt to weaken the US Dollar to make our goods more appealing overseas. In accomplishing this, it has been pitifully inadequate.

However, if Pres. Obama & the US Congress would confront China (and India and a few other 3rd World manipulators) and compel them to raise their currencies against the dollar, the real problem would be solved.

In short, Pres. Obama has painted Chairman Bernanke into a corner.

[ProSense]

9. Krugman

agrees with the Fed policy

[Rex]

10. But it is our favorite system of Failure Economics!

And besides, he only threw money to the richest people in America; the rest of us he stole money, pensions and benefits from.

[dawg]

11. This is a conservative meme, and it is wrong.

Rising food prices are due to poor crop yields and rising fuel costs. These extraneous costs have nothing to do with the money supply. Paul Krugman has written some excellent posts about this on his blog.

As for Bernanke, although technically a Republican, he has generally been on the side of the American worker.

The plutocrats hate Bernanke. They fear inflation because it erodes the value of their piles of money. They don't care whether workers have jobs.

[jtown1123]

14. This is correct. H/e I'm not as optimistic on Bernanke.

[dawg]

16. I'm not super-optimistic on Bernanke, but ...

he's Fed chairman and not Fed dictator, and there are some real conservative ideologues seated on the FRB right now. For now, at least, I'm willing to give him the benefit of the doubt that if he thought he *could* do more, he would.

He is "Helicopter" Ben, after all.

[ProSense]

15. Exactly. n/t

[TheKentuckian]

17. Technically as in lock, stock, and barrel to the tune of being appointed by Bush.

I don't get this "generally been on the side of the American worker" stuff at all.

[dawg]

18. The easy money policy that is criticized by the OP ...

is designed to stimulate the economy, and hence ease unemployment. The plutocrats HATE this, because they fear inflation will erode the value of their cash hoards. Also, inflation will reduce the true amount of debts, such as mortgages and credit card balances. Since the plutocrats benefit from other peoples indebtedness, they would rather tank the economy further rather than risk a little inflation.

A little inflation, say 4-6% a year, would actually be good for most working-class Americans right now.

To his credit, Bernanke has tried to do the right thing despite a huge pushback from the right-wing. Go on one of the right-wing sites if you don't believe me. See what they think of Bernanke.

[Fire Walk With Me]

12. "Hey Ben, what did you think was going to happen when you print hundreds of billions of dollars and

throw it from a helicopter?"

As God is my witness, I thought money could fly.

http://www.youtube.com/watch?v=4FXSnoy71Q4