I recall the conversation and I pointed out that in a world where ignorance is bliss the value of the dollar, or any currency, is largely what the masses want to believe it is. How else do you explain Obama dumping 1.5 trillion dollars into the streets and the Fed saying we're experiencing deflation? It's Non-sequitur - it's BS.

The math doesn't add up. If he dumps 5 trillion dollars or 50 trillion...when do we stop 'pretending' that the money isn't worth less? Right now everyone is looking the other way and most (probably 95 percent or more) don't even KNOW 1.5 trillion was dumped into the streets.

For the minimum wage supporting folks objective value of currency is an anathema. Because when one actually tries to abide some objective value standard for currency, things like the minimum wage are abhorrent because they give the vast majority too little for their labor while rewarding the few, that otherwise would have a hard time bartering a decent wage, with too much. It's much easier to paint a picture for the labor class that 10,15 or 25 bucks an hour (or some other magic number) is the holy grail and all they really need to succeed in life.

It's Looking Glass Land out their right now, when it comes to economics logic, and Bernanke and Obama are the Mad Hatter and Queen of Hearts, respectively.

;-)