Terminal limits scrolling

Go to Edit -> Profile Preference -> Scrolling Tab

Now just tick the Unlimited box below Scrollback.

You will now be able to see your entire output.

Since the question is now over three years old, I just want to post an update:

In Ubuntu 15.10 it is pretty similar to the accepted answer, there it looks the following:

• Go to Edit -> Profile Preference -> Scrolling Tab.

• Untick the box beside "Limit scrollback to:".

Supposedly Gnome terminal has an option for that, please check Edit->Profiles->Default->Edit->Scrolling->Scrollback