Fed printing raising the cost of Fed printing

The irony is just too great!  His pump priming is the main driver to surging input costs to all producers in the world, and this is even lifting his own production costs.  Yet despite The Bernank’s input costs to produce one dollar bill having surged 50% since 2008, he still argues we should be looking at “core” prices when gauging the extent of price inflation.

Come on Bernank!  Step away from your textbooks and see what’s going on in your own evil business.

According to the article below, the US Government Accountability Office (GAO) has suggested that one dollar bills be scrapped and coins rather be used instead.  Is this the end of the famous US quarter?!

However, this suggestion is soon also likely to be taken off the table as the value of the metal used to produce US monetary coins is already greater than the purchasing power of the coins themselves.  See coinflation.com for more on that.  We are not there in SA yet, we’ve checked and will follow with a post on this in the future.

Prediction: there will be a renewed marketing drive by the Federal Reserve and the banksters to promote the use of bank money, i.e. the use of credit, debit, and cheque cards.  One forcible measure may be that a value-added tax is instituted on cash purchases in retail outlets somewhere down the road.

This will also serve to 1) reduce greatly the risk of bank runs in the future, and 2) give banks a greater ability to extend bank money and credit into the economy.