Bernanke to Egypt and Tunisia…”Let them eat cake!”

Bernanke takes credit for rising stock market prices, but not crazy high food prices. Seriously?  I guess he doesn’t want to admit he has blood on his hands.

Contrary to what gets blathered about on CNN, the cost of food is the primary impetus behind unrest in Tunisia and Egypt. Though they claim otherwise,  Bernanke, the TBTF banks, and speculators are causing food prices to climb higher and higher.  Price spikes are a direct, if delayed result, of reckless money printing.

Who does this hit the hardest? The poorest 1 billion on the planet, obviously.  In reality, the world’s poor are now paying the price for the bailout of the TBTF banks in 2008/2009, QE1, and QE-lite.

Think of it. If you’re spending all of your income on food to survive, if prices go up even 5-10%, let alone double, you’re gonna be hungry and damn pissed off. See Egypt and Tunisia. Tomorrow it could easily be Pakistan, Indonesia, Haiti, or India. What we’re seeing now are the effects of the bailouts and QE1. We’ll see the effects of QE2 later this year and next.

It’s not gonna be pretty folks.

Some claim that it’s demand that driving prices higher. I say not so fast. If you look at the BDI index, you can see that demand has been fairly flat, or even falling that past 3 months or so. It’s not a perfect indicator, but you’d think that if there truly was a screaming demand for dry shipping goods (read grains) around the world, the index would at least blip up, not down.

Weather has played a role too, as floods, fires, and droughts destroyed vital crops. (Personally, I worried about honey-bee populations as well.) Weather being what it is, however, I think that a flat BDI indicates that the higher price of food is mostly from beaucoup dollars chasing every apple, orange, and grain of rice, courtesy of Bennie and the Feds.

The Bernank is lying through his teeth. He knows damn well that flooding the globe with newly printed money is gonna get people killed.

“Ben, the peasants have no bread,” we say.

His response it seems, is simple: “Let them eat cake.”

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4 responses to this post.

  1. Posted by Sista on February 8, 2011 at 12:04 am

    Liberté! égalité! fraternité!
    I only wish I had the stomach for the guillotine. (What is the modern equivalent?) I’m surprised The Bernank didn’t try to spin the suffering of others as a necessary evil for rebuilding the economy.
    “The men of all countries are brothers, and the different peoples should assist one another as much as possible like citizens of the same state. He who oppresses one nation declares himself the enemy of all.” –Maximilien Robespierre, French National Convention 1793
    I suppose as a sheltered American, this is one time I am grateful our system of economics is so complicated. It may take awhile for my 3rd world brothers to figure out where to point their fingers. The Revolution this time around just might be global.
    Love to the brother! Got any cake?

    Reply

    • Posted by the rookie cynic on February 8, 2011 at 8:09 am

      No guillotine needed: just buy and bank locally, trade in your FRNs for silver and gold, and grow a garden. That’s how I’m planning to “win the future.” (Did I just quote Obama? Woah!)

      Reply

      • Posted by Sista on February 8, 2011 at 10:03 pm

        I’m already looking into where I can move my mortgage; however, everyone I’ve talked to sells loans off to bigger banks. Gardening is super difficult right now. We’ve failed for two consecutive years. I’ll be storing rice, beans, wheat, and peanut butter.

      • Posted by the rookie cynic on February 9, 2011 at 8:16 am

        Don’t forget the spam!

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