Cognitive Labs

Anheuser-Busch, the co. known for the Clysedale Horses and its "King of Beers" brand, Budweiser, now becomes part of European brewing holding co. InBev, with brands from Bass in the UK to Tsing Tao in China.

Anheuser-Busch, itself formed from mergers of German-American immigrant-initiated firms, now reports back to Europe in a transaction worth $52 billion. We'll probably see more of these transnational mega-mergers since the Euro is at an all-time high compared to the U.S. Dollar, which has been depreciated in value compared to commodities and most world currencies due to the ever-expanding money supply which has the same effect as 'debasement' of the coinage did in Medieval and ancient times. Some indicators show prices have doubled since 2000/20001 (not including housing) and annual inflation for labor and especially commodities and foodstuffs, which leads wages, is as high as 12-14%.

Some would argue that this inflationary trend is an intentional corrective policy to bring housing prices into equilibrium with consumer goods and via a deus ex machina process, assisting the mortgage industry (and all marketers of complex derivatives or companies that depend on third-party securitization of an intangible product) in recovering a greater percentage of overextended portfolios. The percentage of spending on housing will decline relative to other expenditures as wages and prices accelerate faster than housing values over the next several years. This is not what Bernanke is saying but this is a probable net economic effect of the Fed's actions.



'Silvered' bronze coin (c) 300 A.D. traces of silvering remain on the reverse side, which would have given the coin a bright shiny appearance like a quarter when new; however, it quickly wore off. The legend says:


SACRA MONETA AUGG ET CAESS NOSTRA "The sacred money of our two emperors and two caesars" designed to boost consumer confidence in a period of high inflation and debasement. But, the opposite was actually true.

Labels: bernanke, budweiser, euro, inbev

Wall Street appears poised to respond to future interest rate cuts, fueling additional borrowing and digital creation of more and more dollars.

Before Instinet ECNs and the G7, authorities resorted to debasing the coinage when confronted with situations requiring vast expenditures with a limited supply of bullion in the Treasury. After the expenses of the Jewish War (68-71 A.D.) the emperor Vespasian reduced the percentage of silver in the Roman denarius. His successor Domitian continued the trend, though the currency remained in a steady state until the reign of Marcus Aurelius (161-180) when the fineness of silver dropped once more to approximately 75%. Septimius Severus (193-211), the winner of a four-way civil war, also reduced quality while doubling military pay and expanding the Army.

His successor Caracalla (211-217) introduced a new silver coin, the antoninianus, of approximately 50% purity, worth two denarii, which weighed however only 1.5 times as much as the denarius. Meanwhile the government preferred to collect taxes in older, purer money, which when melted down yielded a premium to the face value of the coin, kept by the Treasury.

Little wonder it is that massive coin hoards from this period have been found and turn up continously, buried in the fields or sometimes, plastered within the walls of houses in ceramic jugs and oil lamps.

By the 260's, the antoninianus had become a miserable copper coin with a silver wash. Through a forgotten chemical process, the top layer of copper molecules was evaporated and replaced by silver - an ancient version of Sheffield Plate. Millions or Billions of these coins were minted, which can be procured for as little as 25 cents each in poor condition, almost 2,000 years later.

Inflation ravaged the countryside and cities, along with a cessation of monetary commerce, replaced sometimes by PIK-payment in kind. The emperor Diocletian, a Trumanesque "the buck stops here" figure, tried to curb the problem by introducing new coins of more reliable denomination and metallurgy; e.g. the argenteus; however the rampant inflation continued, leading to this proclamation (inscription from Aphrodisias, in Asia Minor)


Diocletian, Maximian, Constantius, and Galerius declare:

"As we recall the wars which we have successfully fought, we must be grateful to the fortune of our state, second only to the immortal gods, for a tranquil world that reclines in the embrace of the most profound calm, and for the blessings of a peace that was won with great effort. That this fortune of our state be stabilized and suitably adorned is demanded by the law-abiding public and by the dignity and majesty of Rome. Therefore we, who by the gracious favor of the gods previously stemmed the tide of the ravages of barbarian nations by destroying them, must surround the peace which we established for eternity with the necessary defenses of justice.

If the excesses perpetrated by persons of unlimited and frenzied avarice could be checked by some self-restraint—this avarice which rushes for gain and profit with no thought for mankind…; or if the general welfare could endure without harm this riotous license by which, in its unfortunate state, it is being very seriously injured every day, the situation could perhaps be faced with dissembling and silence, with the hope that human forbearance might alleviate the cruel and pitiable situation. But the only desire of these uncontrolled madmen is to have no thought for the common need. Among the unscrupulous, the immoderate, and the avaricious it is considered almost a creed… to desist from plundering the wealth of all only when necessity compels them. Through their extreme need, moreover, some persons have become acutely aware of their most unfortunate situation, and can no longer close their eyes to it. Therefore we, who are the protectors of the human race, are agreed, as we view the situation, that decisive legislation is necessary, so that the long-hoped-for solutions which mankind itself could not provide may, by the remedies provided by our foresight, be vouchsafed for the general betterment of all….

We hasten, therefore, to apply the remedies long demanded by the situation, satisfied that no one can complain that our intervention with regulations is untimely or unnecessary, trivial or unimportant. These measures are directed against the unscrupulous, who have perceived in our silence of so many years a lesson in restraint but have been unwilling to imitate it. For who is so insensitive and so devoid of human feeling that he can be unaware or has not perceived that uncontrolled prices are widespread in the sales taking place in the markets and in the daily life of the cities? Nor is the uncurbed passion for profiteering lessened either by abundant supplies or by fruitful years….

It is our pleasure, therefore, that the prices listed in the subjoined schedule be held in observance in the whole of our Empire….

It is our pleasure that anyone who resists the measures of this statute shall be subject to a capital penalty for daring to do so. And let no one consider the statute harsh, since there is at hand a ready protection from danger in the observance of moderation. . . . We therefore exhort the loyalty of all, so that a regulation instituted for the public good may be observed with willing obedience and due scruple, especially as it is seen that by a statute of this kind provision has been made, not for single municipalities and peoples and provinces but for the whole world….

The prices for the sale of individual items which no one may exceed are listed below in denarii."

(note: modius = 8.496 liters sextarius= .531 liter

commodity measure price

Wheat 1 army modius 100
Barley 1 army modius 60
Rye 1 army modius 60
Millet, ground 1 army modius 100
Millet, whole 1 army modius 50
Panic grass 1 army modius 50
Spelt, hulled 1 army modius 100
Beans, crushed 1 army modius 100
Beans, not ground 1 army modius 60
Lentils 1 army modius 100
Pulse 1 army modius 80
Peas, split 1 army modius 100
Peas, not split 1 army modius 60
Rice, cleaned 1 army modius 200
Barley grits, cleaned 1 modius 100
Spelt grits, cleaned 1 modius 200
Sesame 1 army modius 200

Likewise, for wines:

Picene 1 Italian sextarius 30
Tiburtine 1 Italian sextarius 30
Sabine 1 Italian sextarius 30
Falernian 1 Italian sextarius 30
Aged wine, first quality 1 Italian sextarius 24
Aged wine, second quality 1 Italian sextarius 16
Ordinary 1 Italian sextarius 8
Beer, Gallic or Pannonian 1 Italian sextarius 4
Beer, Egyptian 1 Italian sextarius 2

Likewise, for oil:

From unripe olives 1 Italian sextarius 40
Second quality 1 Italian sextarius 24
Salt 1 army modius 100
Spiced salt 1 Italian sextarius 8
Honey, best quality 1 Italian sextarius 40
Honey, second quality 1 Italian sextarius 24

Likewise, for meat:

Pork 1 Italian pound 12
Beef 1 Italian pound 8
Leg of pork,
Menapic or Cerritane, best 1 Italian pound 20
Pork mincemeat 1 ounce 2
Beef mincemeat 1 Italian pound 10
Pheasant, fattened 250
Pheasant, wild 125
Chickens 1 brace 60
Venison 1 Italian pound 12
Butter 1 Italian pound

Likewise, for fish:

Sea fish with rough scales 1 Italian pound 24
Fish, second quality 1 Italian pound 16
River fish, best quality 1 Italian pound 12
River fish, second quality 1 Italian pound 8
Salt fish 1 Italian pound 6
Oysters 100 100

For wages:

Farm laborer, with maintenance (daily) 25
Carpenter, as above (daily) 50
Wall painter, as above (daily) 75
Picture painter, as above (daily) 150
Baker, as above (daily) 50

Shipwright working on a seagoing ship (daily) 60
Shipwright working on a river boat (daily) 50
Muleteer, with maintenance (daily) 25
Veterinary, for clipping hoofs (per animal) 6
Veterinary, for bleeding and cleaning (per animal) 20

Barber (per man) 2
Sewer cleaner, working a full day, with maintenance (daily) 25
Scribe, for the best writing (per 100 lines) 25
Scribe, for second-quality writing (per 100 lines) 20
Noary, for writing a petition or legal document (per 100 lines) 10
Elementary teacher per boy (monthly) 50
Teacher of arithmetic, per boy (monthly) 75
Teacher of shorthand, per boy (monthly) 75
Teacher of Greek or Latin language
and literature, and teacher of geometry, per pupil (monthly) 200

Teacher of rhetoric or public speaking, per pupil (monthly) 250
Advocate or jurist, fee for a complaint 250
Advocate or jurist, fee for pleading 1000
Teacher of architecture, per boy (monthly) 100
Check room attendant, per bather 2

Labels: Bear, bernanke, denarius, diocletian, edict, prices