"I am beside myself in anger! If it had not been for the damnable Federal Reserve, we would all have a rising standard of living, as prices would be declining in line with productivity increases!"

I thought it was significant that the Conference Board's latest release of their indexes of Leading, Coincident and Lagging Indicators showed that the Leading Indicator (forecasting business activity 6-12 months down the road) rose 0.4, rising to 137.9 from a revised 137.5. Not much of a future!

The Coincident Indicator of current conditions was up 0.2, rising to 105.0 from a revised 124.8. And even less of a present!

The truly horrible news is just what I have been screaming about, lo these many, many months and years, in that the Lagging Indicator reveals inflation and burdens, and it was, again, up the most, rising 0.6, taking the indicator to 129.9 from a revised 129.3.

Inflation in prices is going to kill us, thanks to the despicable Federal Reserve creating so much money and credit, thanks to the despicable Congress (except Ron Paul) who aided and abetted the Fed in this monetary inflation because they love to deficit-spend money, and thus they need this creation of excess money and credit, and thanks to the traitorous Supreme Court, which has since 1933 consciously and deliberately chosen to ignore the part of the Constitution where it says that money shall only be of silver and gold, and that no state will ever make anything a legal tender other than silver or gold, and thus the Supreme Court let the government let the Fed create excess money and credit, which will make prices rise, which destroys the economy and the lives of everyone.

Alarmed, I can see that people are gathering up their things to leave just as I am getting started with my speech! Apparently, most people have already heard my patented, "Inflation is going to eat your guts out, and eat your children's guts out, and eat your parent's guts out, and you will all die a horrible death as a result!" speech. They have never believed me, and they know that I think that they are idiots because of it.

So, hurriedly, I motion for Peter Schiff of Euro Pacific Capital to take the microphone and talk some sense into these idiots in the audience. I shout out, "Okay, listen up, you morons! Mr. Schiff here is going to tell you about inflation!"

I step aside, and Mr. Schiff says, "Inflation has only one cause and that is the Federal Reserve itself. In the United States, the supply of money and credit is regulated by the Fed. Since inflation is by definition an increase in the supply of money and credit, only the Fed can create it."

I look out over the audience to see if anything is sinking into their heads, but all I see is people glaring at me with that familiar look of hatred in their eyes. So I mischievously ask, "What would happen if the Fed didn't create more money and credit?"

He easily replies, "If the money supply were held constant, increases in some prices would be offset by decreases in others. The result would be no overall inflation."

No inflation! To make sure that nobody misses this important point, I grab the microphone right out of his hand and I scream, "No inflation in prices! No inflation in prices! It's a paradise! No inflation!"

Mr. Schiff, taken aback by my sudden outburst, gingerly takes the microphone back and says that, "In fact, without government created expansions of the money supply, the natural tendency of prices would be to decline as technology allowed for more efficient production of goods and services."

I am beside myself in anger! If it had not been for the damnable Federal Reserve, we would all have a rising standard of living, as prices would be declining in line with productivity increases! We would approach Nirvana when we could buy more stuff with every freaking dollar, instead of what we have now; a falling standard of living as we must buy less stuff with every devaluing dollar.

Mr. Schiff summarizes it as "So while most regard the Fed as the primary inflation fighter, in reality it is the sole inflation creator."

And sure enough, the proof was not long in coming, as in the October 18 issue of the WSJ, some weenie named Harvey Rosenblum (who is "executive vice president and director of research at the Federal Reserve Bank of Dallas") penned an article titled "Fed Policy and Moral Hazard" that is actually a clarion call to rise up as an angry, drunken mob and overthrow the Federal Reserve, and (speaking of throwing) throw them all in prison for treason and treachery, making them pay for their crimes by being chained to a tree in the park and charging people a quarter to poke them with a stick.

What Mr. Rosenblum actually admitted was, as un-freaking-believable as it sounds, that "The FOMC seeks to foster an economic environment characterized by low and steady inflation"!

This, of course, brings up the quote of the famous economist John Maynard Keynes, who correctly said, "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

Keeping as calm as I can be, especially given that I am agreeing with Keynes, for crying out loud, and being as polite as possible, I leap to my feet and shout "Wrong, you blubbering halfwit! The purpose of the FOMC is to have an economy where inflation is zero or less! Zero! What part of 'zero' is so freaking confusing to you, you despicable piece of worthless Fed trash, or do I have to come up there and slap your stupid face until you understand?"

I was happy with my performance, as I thought that I controlled myself pretty well, considering that inflation is rising even faster than Mr. Rosenblum's "low and steady" inflation. And what do they do about it? They just lie about it! Inflation is actually running about 10% right freaking now! But the Fed says that "official inflation" is at about 2%, which is bad enough, since 3% inflation in prices is the historical cutoff between people being merely scared and grumpy and people rising up to overthrow the damned government!

And to show you how this loathsome, lying and abject "see no inflation" stupidity is working out in real life, for the one-sixth of the population that is receiving Social Security benefits, the new cost-of-living increase in their monthly benefit will be 2.3%, which comes out to about an extra $24 a month! Hahaha!

And it is not just us Americans who have a foul, monstrous central bank, as is proved by the apparent slip-of-the-tongue that came from ECB chief Francois Trichet, whom Barron's reports as having said "Our monetary policy stands ready to counter upside risks to price stability, as required by our primary objective."

Immediately, my mind (like yours, I am sure) screamed out "Upside risk? Did he say 'upside risks'? What in the hell is an 'upside risk' to price stability versus a 'downside risk' to price stability?"

Yes, it does mean that the ECB is ready to act in case too much price stability breaks out! Hahaha! That seems to be the point! Hahahaha! We're freaking doomed!

P.S. To get The Daily Reckoning sent directly to your inbox, sign up for our free email newsletter, or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.