Latest Inflation Riot Tally: Algeria, Tunisia, Morocco, Yemen And Jordan

Tyler Durden's picture

The Fed chairman is 100% confident inflation can be contained. Rapidly spreading rioting (5 countries so far) would take the under on that.

Latest on Tunisia:

Twelve people were killed in overnight clashes in the Tunisian capital Tunis and the northeastern town of Ras Jebel, according to accounts from two medical sources and a witness on Friday.

Ten of the victims were killed after clashes in the capital, two sources from Charles Nicolle hospital told Reuters.

A witness from Ras Jebel, who identified herself as Narjes, said: "I saw two dead people with my own eyes after police fired at youth".

Tunisian officials could not immediately be reached for a comment. It was not immediately clear whether the shootings took place before or after the country's president ordered police to stop using lethal force against demonstrators.

And now the violence has spread to Jordan:

Food price protests sweeping across North Africa and the Middle East reached Jordan on Friday, when hundreds of protesters chanted slogans against Prime Minister Samir al-Rifai in the southern city of Karak.

The peaceful protest was held despite hastily announced government measures to curb commodity and fuel prices. Similar demonstrations were held in three other towns and cities across the country, witnesses said.

"We are protesting the policies of the government -- high prices and repeated taxation that made the Jordanian people revolt," Tawfiq al-Batoush, a former head of Karak municipality, told Reuters at the protest outside Karak's Al Omari mosque.

Three days ago, after riots in Algeria and Tunisia over high prices, unemployment and falling living standards, Jordan announced a $225 million package of cuts in the prices of some types of fuel and of staple products including sugar and rice.

Other Arab countries have taken similar steps. Libya abolished taxes and customs duties on food products and Morocco offered compensation to importers of soft milling wheat to keep supplies stable after a surge in grain prices.

...Morocco (google translated)

Protests against price rises and unemployment moved from Tunisia to Morocco, where the streets of Rabat, yesterday, saw clashes between young protesters and police forces, which tried to prevent them from organizing a demonstration outside the Moroccan parliament, in protest against unemployment and high prices and the cost of living in Morocco

And Yemen:

In Yemen, Yemeni President Ali Abdullah Saleh fired Minister of Oil and Chief Executive, the Yemen Petroleum Company Omar Arhabi, yesterday, due to a lack in the supply of petroleum products, not available in the market, which led to bottlenecks in front of gas stations and the creation of indignation among the citizens.

Not like there is much to add here, but we would like to add that if a rising stock market was indiciative of "wealth" then the citizens of Zimbabwe have to be the richest people in the universe.

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orangedrinkandchips's picture

They dont care. 1 vs. 1billion...they dont care.

 

It's more than a shame.

Spalding_Smailes's picture

No inflation in the USA like the rest of the " dollar peg dogs ".

 

Those people burning tire should just ask for the peg to be broken from the dollar. Lol'

B9K9's picture

Why is everyone junking you for stating the obvious? We are exporting our inflation. If the host countries want to stop the pain, then simply remove the respective peg(s). Sheesh.

Ok, so now let's noodle through the effects as each country is forced (by social events) to remove their pegs. The $USD will weaken vis-a-vis a market basket of foreign currencies. Since we don't exactly import many goods/services from any of these countries, why are they hestitant to allow their currencies to rise in value?

SgtShaftoe's picture

Its an income vs food price issue, like during the french revolution:

http://freedomofoceania.blogspot.com/2011/01/inflation-impact-to-world-e...

 

StychoKiller's picture

Guns or butter -- guess what the Govts are spending currency on -- seen anyone getting killed from high-speed loaves of bread?

scaleindependent's picture

"Since we don't exactly import many goods/services from any of these countries, why are they hestitant to allow their currencies to rise in value?"

They do not do it because of us. They do it because of their trading partners who are also pegged to the USD. Remember, the dollar is currently the lingua franca of fiat. It has long been, pardon the pun, gold standard of currencies. IF they depeg first compared to their respective trading countries then they will lose competitiveness.

ecuador mike's picture

Don't they know that buring tires will be inflationary on tires??

bob_dabolina's picture

Ben can tame inlfation in 15 seconds with his eyes closed and his hands tied behind his back, underwater while weaving a wicker basket.

He's like a fuckin' inflation ninja.

bob_dabolina's picture

Inflation doesn't rise.

Ben Bernanke falls.

system failure's picture

Excellent thesis to sum it all up, of which, it worked in 2001-2003, when people had jobs per say. We shall watch it fail the second go around as people starve to death and reach reality of the madness. In addition, each state of the union are now falling prey to the madness one by one. Kind of hard for Ben when he has no other choice, or Ben can viewed as such his intials, as small as a BB. Let's make that Daisy BB, if Doc Holiday was still around.

bronzie's picture

"Ben can tame inlfation in 15 seconds"

actually he can - the same way Volker did it - by raising interest rates into the double digits

of course the downside to this approach is that real estate prices will collapse and take down the rest of the economy ...

bob_dabolina's picture

Well thats the trick isn't it.

He can raise rates to double digits but in the same stroke unemployment goes to 20%

But its ok because he said there is no inlation so there is no concern.

TheBillMan's picture

Real unemployment is already > 20%.

Bagbalm's picture

You mean OFFICIAL unemployment goes to 20%. Real unemployment is already near 20% and real unemployment would go to 30% easily as well as the under employed increasing.

flacon's picture

As the interest rates rise, the value of the underlying asset approaches zero and since the FED owns the assets it will go bust.

 

 

SheepDog-One's picture

T's go up 1% from here and the FED is insolvent. Very little wiggle room for them. Damn I'd rather walk a tight rope over the grand canyon than have to deal with this BS every day.

Sean7k's picture

Volker had to raise interest in the 80's to get people to buy the dollar. It is different this time. People are still using the dollar as a safe haven because ALL currencies are falling in value. 

A rise in interest rates now would only make things worse as it will increase the demand for dollars to hoard, rather than to spend while raising federal debt. The FED would have to print even faster- hyperinflation on a fast track, then collapse.

InconvenientCounterParty's picture

Clearly, he's got 2-3 options in mind. If you can hit the quinella you can make an assload of credits.

What's he going to dump from the balance sheet first and what's the trigger?

ideas???

flacon's picture

The Ben Bernank is a Keynesian:

"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." ~ John Maynard Keynes

flacon's picture


And here is Lenin on the topic:

 

“Hundreds of thousands of rouble notes are being issued daily by our treasury. This is done, not in order to fill the coffers of the State with practically worthless paper, but with the deliberate intention of destroying the value of money as a means of payment. There is no justification for the existence of money in the Bolshevik state, where the necessities of life shall be paid for by work alone.

Experience has taught us it is impossible to root out the evils of capitalism merely by confiscation and expropriation, for however ruthlessly such measures may be applied, astute speculators and obstinate survivors of the capitalist classes will always manage to evade them and continue to corrupt the life of the community. The simplest way to exterminate the very spirit of capitalism is therefore to flood the country with notes of a high face-value without financial guarantees of any sort.

Already even a hundred-rouble note is almost valueless in Russia. Soon even the simplest peasant will realise that it is only a scrap of paper, not worth more than the rags from which it is manufactured. Men will cease to covet and hoard it so soon as they discover it will not buy anything, and the great illusion of the value and power of money, on which the capitalist state is based will have been definitely destroyed.

This is the real reason why our presses are printing rouble bills day and night, without rest.”

 


Bernanke is not copying Keynes, he is copying Lenin.

http://investmentwatchblog.com/bernanke-is-not-copying-keynes-he-is-copying-lenin/

I am more equal than others's picture

The pain in Spain will fall mainly on the plains... except it will start with former European colonies.  The secret is out when less economically diverse countries can no longer hide the realty of The Bernank.  The world has been shanked by Bernank.

CH1's picture

Amen, let it burn. The whole setup is an evil scam.

Ragnarok's picture

Crimes against humanity.  Bernanke better have a good plastic surgeon and some land in SA.

Spalding_Smailes's picture

Not his problem.

They control the peg .... 

Hephasteus's picture

Who the food rioters or the central banks that give them the inflation?

Spalding_Smailes's picture

Each country controls its own peg, every country can change any day they want....

The host banking system would be blowtorched, they cant break the peg. They are importing our inflation .... 

ZEITGEIST's picture

JUST SHOWS EVERYONE WHAT AN ASSHOLE YOU ARE...

Spalding_Smailes's picture

Your a fucking moron. How am I wrong you fuck, read a few books before you post again.

pods's picture

He called you an asshole, not an idiot.

I would have added arrogant, but to each his own.

pods

Spalding_Smailes's picture

Every poster I have ripped into did so first ....

 

I have been talking about the peg, dollar denominated debt, china, for months ... Sorry I come off that way but everyone has blinders on ....

Hephasteus's picture

Ok. Go educate them on the "peg" and explain to them how it causes the "inflation" and then their masters can serve them by removing the "peg" and ridding them of the "inflation".

http://www.youtube.com/watch?v=IsvfofcIE1Q

These are not faceless pawns in a justification arguement. These are people. People without a sense of security and well being with survival on the line.

pods's picture

Thanks for this Hep, I was going to write something along these lines.  To be so casual about exporting our inflation whilst sipping a latte, complaining that coffee is up 30%.

The other half is literally getting the top of their heads blown off (vid from the other night) because they are further down on the shit pyramid.  These are not numbers, these are people whose lives are being destroyed by what the banksters are doing.

There will be a special place in hell for them.  Lets hope they get there soon.

(I cannot stream at work, I assume your vid is along the same lines?)

pods 

mess nonster's picture

I m a fkng moron. Explain the peg. Please.

 

tmosley's picture

You don't seem to get it.  When a major currency like the dollar starts to crumble, people flee investments denominated in that currency, and instead run to real goods.  This drives the prices of those things up for EVERYONE.

Don't believe me?  

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

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

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

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

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

Jordan is the only one with a dollar (SDR) peg.

Sell your stupid someplace else.

 

Spalding_Smailes's picture

 Holding the peg means buy more treasuries ... Wrong again.

 

Opec = Peg. China, India, Russia, Vietnam ect,ect,ect,ect,ect,ect  

tmosley's picture

Wow, you don't even know what a currency peg is.

Spalding_Smailes's picture

 

Is that the school bell I hear, run along.

 

As the actions of China and Syria indicate, no list of pegged currencies can always be accurate

 

Nevertheless, as of 2008, there were at least 17 national currencies pegged to the U.S. currency,

Not counting other organizations that maintain a similar link.

 

 

 

These include the Netherlands Antillean guilder, Aruban florin, Jordanian dinar, Bahrain's dinar, Lebanon's pound, Oman's rial, Qatar's rial, the Saudi riyal, Emirati dirham, Maldivian rufiyaa, Venezuelan bolivar, the Belize dollar, the Bahamian dollar, the Hong Kong dollar, the Barbados dollar, the Trinidad and Tobago dollar, and the Eastern Caribbean dollar, which is used by Antigua, Dominica, St. Kitts, St. Lucia, St. Vincent, the Grenadines and Grenada.

 

 

 

tmosley's picture

You can bluster all you want, that won't make your asinine assertion correct.

mess nonster's picture

Look, I AM a dumbshit, because I can't follow you. Let me see if I have it right.

Country A pegs currency to $... food prices soar, because dollar devalues (hence domestic currency devalues), causig prices to rise (inflation).

 

All fine as long as wages rise, but they do not, why?

 

Could it be that global M1 continues to shrink, while M3 soars to bloated levels unimaginable? Inflation is no worry if you have enough money to keep up with it. When you don't... that's when the riots start.

How does coming of the peg change this? Catch 22... on the peg you get riots because M3 inlation, M1 deflation is how we are robbed. Off the peg, your currency is worthless, your cronies won't let it happen- off with his head, same result as riots.

 

Bad time to be the ruler of US vassal state...

Spalding_Smailes's picture


    Potential
  1. When a currency loses value, prices tend to rise in a phenomenon called "inflation" and currencies pegged to the declining currency also succumb to price inflation. The huge decline in the value of the dollar in the last half of the 20th century and the acute depreciation between 2005 and 2008 caused several countries to rethink their dollar pegs. Some, such as Syria, have instead moved towards diversified reserves including euros and gold. Some oil bourses have even contemplated pricing in local currencies and euros in addition to dollar, eroding demand for dollars. Though the dollar appreciated in the last half of 2008, many speculated further declines would ensue as a result of the huge economic stimulus and bailout packages aimed at the credit crisis.
  2. Time Frame
  3. As the actions of China and Syria indicate, no list of pegged currencies can always be accurate. Nevertheless, as of 2008, there were at least 17 national currencies pegged to the U.S. currency, not counting other organizations that maintain a similar link. These include the Netherlands Antillean guilder, Aruban florin, Jordanian dinar, Bahrain's dinar, Lebanon's pound, Oman's rial, Qatar's rial, the Saudi riyal, Emirati dirham, Maldivian rufiyaa, Venezuelan bolivar, the Belize dollar, the Bahamian dollar, the Hong Kong dollar, the Barbados dollar, the Trinidad and Tobago dollar, and the Eastern Caribbean dollar, which is used by Antigua, Dominica, St. Kitts, St. Lucia, St. Vincent, the Grenadines and Grenada.


Significance

  •  Currency pegs are usually undertaken by small countries and those whose economies are based on exports. The dollar became the world's reserve currency after WWII because represented the largest physical gold reserves. As those reserves dwindled and currencies left the gold standard, the fact crude oil is priced primarily in U.S. dollars on most exchanges helped maintain a constant demand for dollars around the world and reaffirm the dollar's status as the world's reserve currency. Countries that primarily export oil or have direct trade with the U.S. as a major component of their GDP are the most likely to have a U.S. dollar peg.


  • Raging Debate's picture

    Good commentary Spaulding. As you note, the countries are diversifying away from dollars but they can't do this overnight. The Yuan will become the reserve currency after the next round of steep dollar devaluation and Yuan slow but steady appreciation, around 2013 by my estimates.

    Spalding_Smailes's picture

    Pettis think's it will be 2030 before they can run free -