Escape sequence \f - form feed - what exactly is it?

From wiki page

12 (form feed, \f, ^L), to cause a printer to eject paper to the top of the next page, or a video terminal to clear the screen.

or more details here.

It seems that this symbol is rather obsolete now and the way it is processed may be(?) implementation dependent. At least for me your code gives the following output (xcode gcc 4.2, gdb console):

hello
    goodbye

If you were programming for a 1980s-style printer, it would eject the paper and start a new page. You are virtually certain to never need it.

http://en.wikipedia.org/wiki/Form_feed

It skips to the start of the next page. (Applies mostly to terminals where the output device is a printer rather than a VDU.)