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An Arabian Revolution

Jack H Barnes's picture




 

 

The
League of Arabian states has just experienced its first populist
revolution in modern times in Tunisia. The prime minister has announced
that he is in control now that the President of the last 23 years or so
has fled the nation.  The nation has only experienced 2 leaders during
its existence.

There is a long list of national leaders who have to be looking
around, wondering if they could be next.  Autocratic dictators, despots
and or Presidents for life have always ruled the region.  This changed
today when the population of Tunisia over-threw their President.

It appears that the Federal Reserve’s intentional actions of
exporting inflation to the world, has claimed its first government.  The
people have grown angry watching the very staples of life become to
expensive to purchase on meager earnings.

This is but the first of what will probably be many events like this
around the world.  The people in mass can be cowed and systematically
robbed, but if you take away their food they will rise up quickly.

Marie Antoinette’s supposed comment about “let them eat cake”, and
the response of the French masses, is as likely and dangerous today to
leaders who fail to understand its meaning, as it was to her health
then. The people will respond violently to rapid food inflation costs.
Nations will fall.

The inflation in food prices is a worldwide crisis, that is still
building.  The heavy rains in Australia and Brazil, will have longer
lasting impacts than the global markets are noticing yet.

The worldwide reserve of spare calories is shrinking as we experience
global issues in places like Russia, Australia & Brazil.  The US is
one of the last nations with any form of strategy food reserves, and we
have very very little left.

The price of fresh food is going to continue to increase as the price
of energy continues to rise.  As a nation, we have grown use to food
being shipped to our grocery stores from all over the world.

New Zealand Apples, or Raspberry’s from Chile, or Mexican Avocado’s
our world food supply choices are shipped in bulk using ever more
expensive energy.  The western world fiat devaluation process will have
real world issues in food prices, in domestic currency terms.  Tunisia
will just be the first example.

Nations that have subsidized staples will find the process of
introducing real world prices harder and harder as we go forward.  It
will cause ever growing examples like Tunisia, where the pent up anger
finally finds a subject it can focus on.  The west may be unleashing
democracy into the world’s dictatorships via the inflation exportation
approach.

Market dynamics will either bankrupt these emerging markets via
rising import costs, or their exports will be impacted by the currency
wars.

This Arabian Revolution will not be the last, the genie is out now. 
Their leaders should be worried about putting the genie back in the
bottle.

Confessions of a Macro Contrarian www.jackhbarnes.com

 

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Fri, 01/14/2011 - 23:22 | 878237 Mark Medinnus
Mark Medinnus's picture

Never interrupt an enemy when he is making a mistake.

Fri, 01/14/2011 - 17:19 | 877426 Bartanist
Bartanist's picture

They can always blame it on the zionists who control the prices... and then go to war.

Fri, 01/14/2011 - 16:53 | 877325 midtowng
midtowng's picture

Hopefully some good will come out of all this.

Fri, 01/14/2011 - 23:08 | 878212 Freddie
Freddie's picture

Meanwhile a very corrupt country with a muslim leader, slips deeper into insolvency as the docile and servile masses get brainwashed 24x7 in HD.

Fri, 01/14/2011 - 19:28 | 877806 Thorny Xi
Thorny Xi's picture

Not a word in the WaPo about food costs in relationship to this...

Fri, 01/14/2011 - 19:25 | 877799 ajax
ajax's picture

 

Mr. Barnes really ought to get out a little more:

http://www.thenational.ae/news/worldwide/unemployed-saudi-teachers-stage...

 

 

Fri, 01/14/2011 - 17:38 | 877481 covert
covert's picture

it will. it's the start of representative govt. in that region though, it would very hard to maintain. it also begins the freedom of the local markets. free markets are often manipulated carefully after fiat is established.

http://covert2.wordpress.com

 

Fri, 01/14/2011 - 18:38 | 877671 Cleanclog
Cleanclog's picture

Free markets are a lovely concept.  Where are they these days?  Certainly not in the USA.  Or maybe that is what you meant by them being often manipulated after fiat is established.  Certainly the case in the medicated manipulated USA where markets are for the HUGE and Insiders.

Fri, 01/14/2011 - 18:30 | 877646 Tom Servo
Tom Servo's picture

Representative government in Tunesia, yeah right.  I'm going to say "I'm from Missouri" on that one.... THe IMF is probably going to roll in with some "reconstruction loans" and stand up the next dictator.

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