A Poor Job of Stamping Out Food Price Inflation

"Currency in Circulation, which is actual cash money created out of real paper and ink or various metals, rose over $6.3 billion last week alone! $6 billion bucks! In one week! That's almost $20 for every man, woman and child in America! In one week!"

by The Mogambo Guru

Allison Bybee wrote a report for CBS12.com - a television news show - that had the headline "Food Stamp Applications On The Rise". Well, to be fair, I can hardly remember a time when food stamps applications were NOT on the rise, Allison! Hahaha!

So I wasn't paying any real attention, and I was idly looking at her name, Allison Bybee, and I thought it had such a nice, almost musical, quality to it. It suddenly occurred to me that instead of me doing any real work around here, maybe she would like a little positive feedback, and I could let her know how much her name, and her article, touched me, and how I am better person for it, and blah, blah, blah.

So I started off an email, "Dear Ms. Allison Bybee, I like your name. I like your article. Please send me photographs of yourself naked. Thank you."

While waiting for her to get back to me, I decided to use the time productively, and read her article in case she wants to, you know, talk about the aforementioned article.

Well, it seems that Florida's Department of Children and Families, a huge, sprawling bureaucracy, reports that "in the last 2 months alone, food stamp applications are up 30%."

What? My eyes bugged from my head at that horrific news! DCF can not have possibly budgeted enough money to anticipate a 30% increase in an expensive benefit that ranges "anywhere from $10 a month to several hundred dollars, depending on your situation", by which I take it to mean "up to $3,600 a year per recipient for years and years to come." And now demand for this huge expense is exploding by 30% in a year!

She says, "High Prices, poor economy, rough times pushing families over the edge" is bad news, which fits perfectly with a quote from Cherri Sheffer, somehow affiliated with DCF, who says, "We are seeing a lot more people that never applied in the past. That's a significant change; you have people that have significantly lost income."

Naturally, my First Mogambo Instinct (FMI) is to get these people on the damned phone so I could gently inform them that they are both a couple of idiots if they think that the loss of nominal money balances for a few people is bad and then completely ignore the terrifying fact that the buying power of the dollar has fallen by almost half in just the past 5 years! They didn't lose just income; they lost buying power!

This means that even if these poor people DID have some money, things would STILL cost twice as much as they did 5 years ago! And it's getting worse Every Freaking Day (EFD)!

And the reason that the buying power of the dollar is dropping EFD is because the damnable Federal Reserve is creating more and more money and credit every freaking day, which makes you want to scream and vomit in fear at the inflation in prices that is guaranteed to follow such inflation in the money supply.

For example, Currency in Circulation, which is actual cash money created out of real paper and ink or various metals, rose over $6.3 billion last week alone! $6 billion bucks! In one week! That's almost $20 for every man, woman and child in America! In one week!

Of course, I am sure that most of this is to supply cash to the various corruptions in the CIA, Afghanistan and Iraq wars, etc., which inflates the U.S. money supply but isn't (theoretically) spent in the USA! That would be the worst of all worlds; inflation in the money supply leading to inflation in prices, but without ever getting the money to pay for any domestic consumption at the old prices! Hahaha! We're not only freaking doomed, but stupid, too!

I don't think I am exaggerating one tiny bit when I say, "This is insane! And such insane monetary policy can come from asylums for the blubberingly, irrationally insane or the Federal Reserve, however redundant that seems to be!"

I mean, pursuing a monetary policy that results in a 30% annual rise in applications for food stamps is, to coin a phrase, freaking insaaaaAAAAaaane!

And it is made worse - much worse! - by a federal government that is borrowing like there is no tomorrow so that they can spend like there is no tomorrow, (on things like food stamps! Hahahaha!), because if they don't borrow and spend all that money, there will not BE a tomorrow! How do you like them apples? Hahaha!

This, at once bizarre and terrifying, is the stricture of a debt-based money; you must have continual, exponential growth in debt forever (as everyone owes more than they borrowed), or you will have a huge deflation in the money supply and in asset prices, and the economy will collapse in a big stinking heap (BSH).

On the other hand, continual, exponential growth in debt means prices that rise exponentially forever in a massive inflation that ends when the starving masses revolt! Hahaha!

So count your blessings, ladies, that you only got a 30% rise in food stamp applications, because the crush of applications you will be getting in the future will make today seem like a day at the beach.

The good news is that the poor may be starving to death on the streets, but they must still have their Internet accounts, as we learn from the news that "The government is making it easy to grab an application online." Hahaha!

Thus we see that the poor, like everyone else, have priorities. Too bad they didn't make it a priority to buy gold all these years, or else they would be fine, instead of being broke!

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The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications. Click here to visit the Mogambo archive page.

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