It means the cost for just about everything will go up.
It means you will be paying higher prices because your dollar is worth less.
From http://inflation.us/ecbitalybailout.html
“...The extremely high levels of debt in both Europe and the U.S. need to be liquidated as soon as possible. If Italy can’t sustain itself with 7% interest rates, which is only average on a historical basis, think about how large the crisis will be in the U.S. when interest rates here reach 15% as price inflation spirals out of control. Less than three months ago Italy’s interest rates were below 5%. Fundamentally, Italy’s economy is the same as it was three months ago, but perceptions in the marketplace change quickly. Today, U.S. treasuries are still perceived to be a safe haven, but this will change 180 degrees in no time.
Just like how the U.S. government understates inflation when calculating COLA adjustments, they also understate inflation when calculating GDP growth. The U.S. recently reported 3Q GDP growth of 1.62% on a year-over-year basis, which used a price deflator of only 2.52%. If they used the real rate of price inflation, they would have reported negative GDP growth. The Federal Reserve just lowered forecasts for U.S. GDP growth in 2012 to between 2.5% and 2.9%, down from a forecast in June of between 3.3% and 3.7%. In order to ensure that we even meet the Fed’s new projections, the Fed will soon be launching QE3. NIA predicts that the Fed will use fears of contagion from the European Debt Crisis as their excuse for launching QE3 in the near-future. Combined with massive inflation from Europe as the ECB monetizes debt to save banks with exposure to Italian bonds, gold will soon skyrocket to new all time highs with silver likely beginning to once again outperform gold.” November 9, 2011
It is simple if you keep your eye on the ball. Remember that the right to call on goods and services from the economy is determined by the amount of money each player has. That call on goods and services can be devoted to capital investment (increasing physical or human capacity to produce future goods and services through training, education, research, or investment in physical plant, transportation, etc), or it can be consumed (buying food, housing, yachts, private island in the Caribbean and a private jet to get there).
So, the only question is, who gets first access to the additional calls on goods and services (credit or actual dollars created). If it goes to corporate investment in productive enterprise, that may be good if we all gain in the long term. It if goes into your pocket that is ok too. But if it goes to the super consuming class (government and welfare or high end playboys - and there are A LOT of these these days) then you lose.
I suspect you will find that little of Bernanke's slush lands in your pocket, and if this is the case, then guess what. Since printing and distributing dollars is a zero-sum game (for every winner there is a loser), it is really simmple. YOU LOSE! (Total dollars chasing the same goods increases, which means prices increase, but the dollars you have to buy them stays flat).
It doesn't mean anything. When the swaps are repaid, the dollars we be extinguished. Nothing will change.