The Federal Reserve’s experimental effort to spur a recovery by purchasing vast quantities of federal debt has pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates.

So actually, it’s done exactly what it was intended to do.

QE was never about helping the economy.

Gold bullion is a hedge against inflation. If you didn’t think inflation was about to be a problem, gold would be the worst thing to put your money in because the price of gold is at an all time high.

I think someone doesn’t believe the Fed’s claims about no inflation.

A lot of someones.

Consumer prices — or the consumer price index — rose 0.5% in February, the most since mid-2009, largely because of surging food and gasoline prices the Federal Reserve’s quantitative easing is devaluing the Dollar like crazy. Core inflation, which excludes volatile food and energy costs, rose a more modest 0.2%, though that still exceeded estimates.

There, USA Today, I fixed that one for you.

New York Fed President William Dudley got p0wnd by the crowd in Queens when he went down to explain the economy to the rubes. Too bad the “rubes” weren’t falling for it.

The former Goldman Sachs chief economist gave a speech explaining the economy’s progress and the Fed’s successes, but come question time the main thing the crowd wanted to know was why they’re paying so much more for food and gas. Keep in mind the Fed doesn’t think food and gas prices matter to its policy calculations because they aren’t part of “core” inflation.

So Mr. Dudley tried to explain that other prices are falling. “Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful,” he said. “You have to look at the prices of all things.”

Reuters reports that this “prompted guffaws and widespread murmuring from the audience,” with someone quipping, “I can’t eat an iPad.” Another attendee asked, “When was the last time, sir, that you went grocery shopping?”

And that explains one of the key failings of the Fed. The two necessities in life, food and energy, are experiencing tremendous inflation. But the Fed’s inflation model ignores those things.

How stupid do you have to be to think people don’t need to eat or drive?

But the Fed won’t admit it because food isn’t a part of the Consumer Price Index.

I guess people don’t have to eat.

I don’t have anything against dollar coins but it’s a good sign that the Dollar has reached change status. Almost nothing costs a dollar (or less) any more and thanks to the Fed inflation will devalue the Dollar even more.

Maybe it’s time to call it what it is now.

Pocket Change.

When you’re in a hole, stop digging. Stop running deficits of over 1.5 trillion dollars. Act like grownups and get your fiscal house in order. Stop spending 25% of what we produce. Stop wasting my money and giving it to your friends. Stop passing legislation that makes it hard to figure out what the rules of the game are going to be. Get out of the way. Make government smaller and give us a chance to do what comes naturally—seeking ways to make profit, avoid loss and work together. That is the only sustainable path to prosperity.–Russ Roberts

From opening remarks before the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending of the House Committee on Oversight and Government Reform, February 16, 2011