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The Darker Side of Inflation… is Death

Phoenix Capital Research's picture




 

Ben Bernanke
always was a revisionist liar… but now his misguided policies are actually killing people... literally.

 

In case
you’ve missed it, food riots are spreading throughout the developing world
Already Tunisia, Algeria, Oman, and even Laos are experiencing riots and
protests due to soaring food prices. 

 

As Abdolreza
Abbassian, chief economist at the UN’s Food and Agriculture Organization (FAO),
put it, “We are entering a danger
territory.”

 

Indeed, these
situations left people literally starving… AND dead from the riots.

 

And why is
this happening?

 

A perfect
storm of increased demand, bad harvests from key exporters (Argentina, Russia,
Australia and Canada, but most of all, the Fed’s money pumping.

 

If you don’t
believe me, have a look at the chart of the Rogers Agricultural commodities
index below:

 

 

As you can
see, it wasn’t until the Fed announced its QE lite program that agricultural
commodities exploded above long-term resistance. And in case there was any
doubt, QE 2 sent them absolutely stratospheric.

 

As a
consequence of this, many developing nations (where food accounts for a larger
percentage of income) have already broken out in riots, protests, and other
demonstrations.

 

Some
commentators see this situation and say, “so what, that will never happen in
the US.” These folks are in for a RUDE surprise in the coming months.

 

Indeed, you
can already see the impact hitting the US:

 

-Kraft Raises Prices On Maxwell House,
Yuban Coffees

 

-General Mills to raise prices

 

-McDonald’s plans to raise prices in 2011

 

-Food Sellers Grit Teeth, Raise Prices

 

-Kroger to Pass Along Food Price Gains

 

It’s really
a striking situation to see academics employ policies that result in actual
people starving and still say with a
straight face “inflation is contained.” Seriously, how does Bernanke see the
situations occurring abroad (and now in the US) and NOT think he might be off base
(yes, I know the answer, it’s a rhetorical question).

 

Most folks
talk about inflation and think of the images of Weimar Germany where people
literally burned money for fuel. They don’t think of starvation and food riots.
But that’s exactly what’s occurring in the world right now as a result of
Bernanke and his cronies attempts to keep the big banks (all of which are
insolvent) in business and cranking out the bonuses.

 

This is the
darker side of inflation folks. It’s the side most people don’t want to talk
about. But it’s real.

 

Good
Investing!

 

Graham
Summers

 

PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.

 

I call it The Financial Crisis “Round Two” Survival
Kit
. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).

 

Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.

You can
access this Report at the link above.

 

 

 

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Sat, 01/22/2011 - 14:09 | 895875 satansanus
satansanus's picture

jews ran the central bank in prehitler germany just like they run the central bank during our current economic disaster.

 

Until the system is by americans for americans we will never have stability.

 

The jews gain far more control by having a permanently destabilized nation. Shut em down

Sat, 01/22/2011 - 13:08 | 895785 Its the Vatican...
Its the Vatican Stupid's picture

Anorexia is going DOWN, bitchez!!!

Sat, 01/22/2011 - 12:18 | 895721 walcott
walcott's picture

 

Publix. You buy two for one on everything. Have to adjust what you eat.

I don't eat meat other than tuna or shrimp and salmon.

You can buy cauliflower for like $2 a bunch. Got 5-10 lbs of sweet potatoes at $39 a lb.

I bought 3lbs of pears the other day for one dollar!

 

get everything on sale. Like for cereal I get cornflakes a 24 oz box $2.69 every day.

My diet is excellent. I don't eat any crap. Brownie mix and candy bars and crappy chips are for idiot flouride heads. I've taken the red pill actually bottles of them.

I understand the BS that's happening. But you have to make adjustments. 

 

If you have to go to wal-mart for bulk and paper products go there at 3-4 a.m. And limit any trips to once every couple or three months. If you just stop going altogether even better. Don't play NWO's crappy games.

One must really look at this as if you are training for the fight of your life. In other words train like a son of a bitch. Turn your body into a weapon.

 

 

Sat, 01/22/2011 - 10:58 | 895630 topcallingtroll
topcallingtroll's picture

Hello? The food riots are because these countries have official or de facto dollar pegs as they try to steal our capital base. No non- pegging country is having dollar inflation food riots. End the pegs and your people wont starve.

Sat, 01/22/2011 - 12:40 | 895745 ATM
ATM's picture

There is another side to that coin. If they end the peg then their currency will surely rise but that means the jury rigged export economy that these countries have built will suffer meaning fewer jobs.

So they can either starve because they are working and can't afford the food, or the food can be more affordable but they won't have any money to pay for it.

Riots are going to happen either way because the current global system is unsustainable. It falls apart in either event.

Sat, 01/22/2011 - 10:26 | 895607 gwar5
gwar5's picture

Methinks food shortages are just beginning. That's why the global warming fraud fixes are so criminal. Millions will starve due to massive food shortages if they get their way. Diabolically Malthusian, or just stupid?

And things like shutting off the water in the fertile central CA valley has turned the area into a large food stamp village instead of a thriving world food exporter. It's criminally stupid. Surely TPTB leading the charge must know the depopulation consequences.

Sat, 01/22/2011 - 12:20 | 895727 cossack55
cossack55's picture

Which begs the question: Who had the Georgia Guidestones built and why?

Sat, 01/22/2011 - 09:04 | 895563 Spigot
Spigot's picture

IMO nations with marginal economics that are net food importers may very well end up doing what China and Russia just did in bilateral trade: bypass the US$ and trade directly using ther own currencies.

The real problem is the US$ and its abuse. At some point nations will have to make decisions to move away from using the dollar in order to regain some control of their input costs. It looks like this may be driven my their rioting populations (Tunisia, Algeria) forcing political collapses.

Food crop harvests in major "bread basket" areas of the world have seen a number of catastrophic failures in the past 6-9 months: Russia (potato crops failure last summer), Argentina (corn, soy, wheat happening now), Australia (wheat wipe out due to floods).

The Russian potato harvest failure is as much a cultural situation as not since this staple is central to the Russia Psyche. So, they are buying up alot of the storage crops in the USA right now in order to export to Russia which will drive up prices and cause shortages in the USA.

Seems that weather and financial stupidity are taking a walk together these days around the world. And it may precipitate unforseen consequences for currencies such as the US$.

Sat, 01/22/2011 - 08:27 | 895542 Thingumbob
Thingumbob's picture

While I agree with the gist of your writing, the attempt to sell survivalism rather than a economic solution allows any wary reader to wave away the reality you report as merely another case of a crank trying to scam some dough. Unless the speculative bucket shop gambling casino is shut down and we return to sovereign credit systems based upon productive investments in the physical economy, no amount hand wringing survivalism makes a bit of difference to the future well being of humanity. And after all, we all are going to kick the bucket sooner or later...What matters is what we leave behind us, don't you think?

Sat, 01/22/2011 - 12:49 | 895757 walcott
walcott's picture

it's going to take more than singing kumbaya and voting for fake politicians to end the current economic stranglehold of banksterism. Have word from a serious player.

The plan is to eliminate at least half the world population of useless eaters.

You won't have any money once you give up your liberty.

Sat, 01/22/2011 - 12:18 | 895720 cossack55
cossack55's picture

NO. What matters is how many of the scum go out with you.  Choice: observer/victim......participant/human

Sat, 01/22/2011 - 03:35 | 895376 walcott
walcott's picture

other than GSeneral JP mills NWO cereal boxes which have been haved.

I have not seen any price increases. Yet anyway. And talked with my water

delivery guy and asked him if there was a need to stock up on water.

He looked at me like wtf? Joked about any supply, there's tons of water!

If you buy shitty Kraft coffee hopefully the price increase will make stop drinking that gut rot crap. And McDonalds if you're stupid enough to eat that shit you already have a death wish.

Sat, 01/22/2011 - 10:24 | 895601 TheDriver
TheDriver's picture

Please tell us all where you shop and aren't seeing price increases. As a baker concerned about rising prices, I decided to run some numbers yesterday. My flour costs this month are up 27.1% over last month.

Sat, 01/22/2011 - 12:07 | 895712 walcott
walcott's picture

Publix. You buy two for one on everything. Have to adjust what you eat.

I don't eat meat other than tuna or shrimp and salmon.

You can buy cauliflower for like $2 a bunch. Got 5-10 lbs of sweet potatoes at $39 a lb.

I bought 3lbs of pears the other day for one dollar!

 

get everything on sale. Like for cereal I get cornflakes a 24 oz box $2.69 every day.

My diet is excellent. I don't eat any crap. Brownie mix and candy bars and crappy chips are for idiot flouride heads. I've taken the red pill actually bottles of them.

I understand the BS that's happening. But you have to make adjustments. 

Don't play NWO's crappy games.

Sat, 01/22/2011 - 12:07 | 895711 walcott
walcott's picture

Publix. You buy two for one on everything. Have to adjust what you eat.

I don't eat meat other than tuna or shrimp and salmon.

You can buy cauliflower for like $2 a bunch. Got 5-10 lbs of sweet potatoes at $39 a lb.

I bought 3lbs of pears the other day for one dollar!

 

get everything on sale. Like for cereal I get cornflakes a 24 oz box $2.69 every day.

My diet is excellent. I don't eat any crap. Brownie mix and candy bars and crappy chips are for idiot flouride heads. I've taken the red pill actually bottles of them.

I understand the BS that's happening. But you have to make adjustments. 

Don't play NWO's crappy games.

Sat, 01/22/2011 - 12:07 | 895709 walcott
walcott's picture

Publix. You buy two for one on everything. Have to adjust what you eat.

I don't eat meat other than tuna or shrimp and salmon.

You can buy cauliflower for like $2 a bunch. Got 5-10 lbs of sweet potatoes at $39 a lb.

I bought 3lbs of pears the other day for one dollar!

 

get everything on sale. Like for cereal I get cornflakes a 24 oz box $2.69 every day.

My diet is excellent. I don't eat any crap. Brownie mix and candy bars and crappy chips are for idiot flouride heads. I've taken the red pill actually bottles of them.

I understand the BS that's happening. But you have to make adjustments. 

Don't play NWO's crappy games.

Sat, 01/22/2011 - 12:16 | 895718 cossack55
cossack55's picture

I would recommend buying the brownies.  Stick them in the closet and use them for barter.  The addicts will trade PMs for brownies.

Sat, 01/22/2011 - 09:00 | 895561 Tacreamer
Tacreamer's picture

Portion sizes are cut, have you seen the Fun-size Snicker, thats not fun.

Sat, 01/22/2011 - 11:01 | 895636 topcallingtroll
topcallingtroll's picture

Noooo! Not the snicker! Oh dear god.

Sat, 01/22/2011 - 08:45 | 895556 Coast Watcher
Coast Watcher's picture

Haven't been to a supermarket lately, have you. Meat, dairy, fruits, hell even my favorite boxed brownie mix are up significantly.

Sat, 01/22/2011 - 06:59 | 895503 cossack55
cossack55's picture

You really need to think about getting out more.  Do you have flouride in your water?  Look up Neotame.  Do some research or die fat and stupid.

Sat, 01/22/2011 - 03:10 | 895362 Lord Koos
Lord Koos's picture

It's not just inflation that starves people, speculation can have the same effect. Speculating in food commodities ought to be banned IMO - if you aren't going to take delivery of the 100 tons of corn then you shouldn't be playing.

Sat, 01/22/2011 - 10:56 | 895629 Rogerwilco
Rogerwilco's picture

Speculation/hedging in commodities has been part of the markets for thousands of years, and there is nothing wrong with it as long as it's part of the normal flow.

The problem we have today is that the markets have been distorted by large flows of excess capital from irresponsible central banks.

Sat, 01/22/2011 - 11:02 | 895637 Just_Another_User
Just_Another_User's picture

agreed.

Sat, 01/22/2011 - 06:58 | 895500 cossack55
cossack55's picture

So, who do you think is speculating (with free money from the Feds discount window)?

Sat, 01/22/2011 - 05:44 | 895456 AnAnonymous
AnAnonymous's picture

Only one thing is known to be efficient against speculation: mass production (abundance)

Sat, 01/22/2011 - 08:40 | 895551 Bob
Bob's picture

Nice deflection in a world of growing population and leveling production. 

Are you saying that you don't know that barring "speculation" as defined by the commentor wouldn't be "efficient"?

Sat, 01/22/2011 - 00:38 | 895302 AnAnonymous
AnAnonymous's picture

Yet, for the most, that is classical US business. Not the first time the US uses inflation to starve people.

Sat, 01/22/2011 - 00:37 | 895299 Spitzer
Spitzer's picture

Bernank just looks at the CPI, he probably thinks that domestic deflation will cause people to die too.

Sat, 01/22/2011 - 00:29 | 895293 BigDuke6
BigDuke6's picture

Don't be scared - bloody wiemar germany again... yawn.

It is true that soft commodities and grains have outperformed gold and metals for the last 6 months but its also that things were abnormally good for a while on debt and now its back to reality.

Keep the anger on vs Wall str - weird thing is it would take another wiemar situation for blankfiend and his pals to ever be held to account for their 'jewish confetti'.

Sat, 01/22/2011 - 00:25 | 895288 redbud
redbud's picture

I checked RJA back 3 years, and it appears that the index was much higher then. Why?

Sat, 01/22/2011 - 00:06 | 895267 lynnybee
lynnybee's picture

this is the kind of article that actually scares me.     Our innocent elderly, who truly are the most innocent among us, most having lived a good up-standing lifestyle of prudence & saving, do not deserve what is coming their way.     The FEDERAL RESERVE BANK needs to be ended, this is the last straw.    i can tolerate most anything, but, i CANNOT TOLERATE seeing innocent children & elderly being harmed by a BUNCH OF CORRUPT, DEGENERATE, VULGAR, LYING, GREEDY, M.F. BANKERS .     (extend charity as best you can to those less fortunate; odds are it's not their fault they are in the situation.)    

Sat, 01/22/2011 - 12:38 | 895741 cdskiller
cdskiller's picture

lynnybee, you know what you have to do? You have to share these feelings with your representatives and begin working to find a democrat who will challenge Obama in 2012. Our current President is on his knees, servicing that bunch of corrupt, degenerate, vulgar, lying, greedy, M.F. bankers.

The rise in commodity prices is NOT the result of a rise in demand or a lack of supply due to lower harvests. That's just the spin. The conventional wisdom narrative intended to induce passivity, as if nothing can be done about it. Market forces at work, as if following some deep natural law. That's not the real story. The system is out of whack. And people are dying across the globe. Look it up. Get the facts.

Sat, 01/22/2011 - 06:56 | 895499 cossack55
cossack55's picture

Gee, your description of bankers also applies exactly to politicians. Huh? Who would have thought?

Mon, 01/24/2011 - 12:03 | 898828 vxpatel
vxpatel's picture

and priests...

Fri, 01/21/2011 - 23:42 | 895227 mark mchugh
mark mchugh's picture

If you've ever wondered why people allowed themselves to be herded into railcars and shuttled to their deaths, it's because they were starving.

Fri, 01/21/2011 - 23:56 | 895245 vxpatel
vxpatel's picture

starvation = obedience?

or

starvation = revolution?

 

we'll see...

Sat, 01/22/2011 - 00:35 | 895297 redbud
redbud's picture

More people on food stamps = more revenue for JPM

link: http://seekingalpha.com/article/247234-jp-morgan-profits-from-food-stamp...

Sat, 01/22/2011 - 09:02 | 895562 Hey Assholes
Hey Assholes's picture

This is criminal.

The incentives are perverse.

Where is the f*cking outrage (outside of ZH)?

There are so many outrages, perhaps the sheeple are simply stunned. More likley, they are asleep.

We are doomed.

Sat, 01/22/2011 - 10:30 | 895610 tsx500
tsx500's picture

I am outraged.     by the way what happened on American Idol this week ?

Sat, 01/22/2011 - 00:26 | 895289 mark mchugh
mark mchugh's picture

It all depends on how long you've been hungry....

Sat, 01/22/2011 - 11:00 | 895634 Landrew
Landrew's picture

Hi Mark,

Fascinating thought on the starvation of the German Jewish community! I would love to know more. I have never read anything on that specific topic, other than Germans in general were starving. Do you think this general starvation was intentional or an accidental policy that coincided with the eventual agenda of the Nazi? This hyperinflation was several years prior to the Nazi take-over. This would easily be worth writing a paper about.

Sat, 01/22/2011 - 00:10 | 895274 LowProfile
LowProfile's picture

Starvation = Obedience?  LOL, 72 hours w/o food and people riot.

Jews were taught to get along, and that's what they did.

Sat, 01/22/2011 - 11:35 | 895671 GreenSideUp
GreenSideUp's picture

Jews were taught to get along...

And Americans are not?  Think about the last time we had any notable civil unrest/rioting in the US.  Unless I'm missing something, it's been a while, and these days, anyone who so much as holds up a sign on a street corner is portrayed as being nuttier than a fruitcake (Tea Partiers, for example).  When I was growing up, there was all sorts of civil unrest on the nightly news: civil rights, Vietnam war, and so on.  

Naw, most Americans will just take their food stamps, unemployment and "free" health care and get on the cattle cars.  Just like the Jews did.

 

 

Sat, 01/22/2011 - 12:32 | 895735 vxpatel
vxpatel's picture

Damn you! We're no cattle, we're sheeple! And until they have streaming tv on iphones, I can't be expected to partake in street protests!

Palin / Quayle 2012

Fri, 01/21/2011 - 22:54 | 895151 DirtySouth
DirtySouth's picture

22s 6d

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