Raging price inflation – the worst since the 1970s – is a direct result of the Fed’s program of mass dollar debasement. Specifically, the Fed has expanded its balance sheet by $5 trillion since September 2019.
This $5 trillion, remember, was created out of thin air. No soil was overturned. No widget was fabricated. No technology was discovered. The Fed made a ledger notation and the money magically appeared.
Yet all this printing press money from the Fed has a serious defect; there’s no production behind it. And if you follow the money you find that much of the $5 trillion was loaned to the Treasury. From there, this fake money was spent into the economy like real money…where it chases the price of goods and services higher.
The fake money cycles through the economy as if it were the real thing. Grocers accept it. Dog walkers too. But the fake money represents no increase in actual wealth. It merely pushes prices higher. Unrestrained Fed money printing also sparked an epic supply chain crisis and rife shortages of consumer goods…and further price inflation.
As noted by our friend Tyler Durden at ZeroHedge, the American Farm Bureau Federation’s annual survey indicated the cost of providing a traditional Thanksgiving turkey dinner to 10 people in 2021 is 14 percent higher than a year ago. What’s more, the price of the turkey has increased 24 percent from last year.
If you’re uncertain about what’s going on, Vice President Kamala Harris recently clarified the situation. Per the VP:
“Prices have gone up.”
But according to the Fed, there are ways around this…
One of the mandates of the Federal Reserve Act is for the Fed to conduct monetary policy so as to promote stable prices. Quite frankly, a 24 percent annual increase for a turkey is inconsistent with the mandate for stable prices.
Failures this impressive would be grounds for termination in most professions. There are certain exceptions. For example, university professors, public agency employees, and Presidential cabinet staffers are generally shielded from losing their job over poor performance.
At the Fed, failures and fiascos bring about a twisted feedback loop. Professional failures amplify the conceit that central bankers know what’s best for everyone…including you.
A turkey may cost 24 percent more than a year ago, thanks to the Fed’s handiwork. But check this out… There’s a nifty way you can still have a Thanksgiving feast at a discount and help save the environment too.
Last week the Federal Reserve Bank of St. Louis implied that you should not eat turkey this Thanksgiving. Rather, you should eat something called tofurkey. Here’s the rationale posted to the Fed’s blog:
“As of the third quarter of 2021, a hearty Thanksgiving dinner serving of turkey costs $1.42. A tofurkey (soybean) dinner serving with the same amount of calories costs $0.66 and provides almost twice as much protein.”
Does the person who wrote this think they are smart?
This upside down logic – twice the protein at half the cost – is the sort of idiocy the Bureau of Labor Statistics uses to make hedonic price adjustments when calculating the CPI. The absurdity of hedonic price adjustments is a topic for another day. As for fake food, tofurkey…no thanks!
Hey, St. Louis Fed!… Go Tofurkey Yourself!
Here at the Economic Prism we believe individuals should be free to choose what they want in life, so long as they don’t commit aggression against another man’s person or property. By this, the St. Louis Fed’s free to eat fake turkey on Thanksgiving. We won’t stand in the way.
If that’s what the eggheads at the St. Louis Fed like. Then that’s what they should eat. Go for it!
We’re eating turkey. The real thing. And ham. And ‘sum green beans and a grab a taters’. Because that’s what we like to eat on Thanksgiving.
We find life to be infinitely more satisfying when we eat both meat and plants. So that’s what we do.
When it comes down to it, we don’t need some control freak psychopath – or well-intentioned loser – at the Fed telling us what to eat for Thanksgiving. Moreover, we don’t need some appointed bureaucrat feeding us a senseless justification for why higher prices are really lower prices.
Hey, St. Louis Fed!… Go tofurkey yourself!
Hey, Davos Man and other central planners! Those who demand we eat insects to somehow fix the planet. You can go tofurkey yourself too!
The obvious pretense is exhausting. As for those down here with the rest of us…
Have a Happy Thanksgiving full of joy, family, friends, abundant food, and sensibly selected vice.
The world as we’ve known it is coming to an end. Washington’s an absolute dumpster fire. But there’s still plenty to be grateful for.
What better time to relax and flip the bird at the elites than Thanksgiving?
for Economic Prism