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Sudan Next To Succumb To Bernanke's Inflationary Experiment, As Country Threatens Revolution Over Surging Food Prices

Tyler Durden's picture





 

About a month ago, some took offense at our characterization of the Chair-hewlettpackard-man as a "bearded mutant-cum-supreme genocidal overlord" after we predicted to the dot that his monetary policy would eventually lead to a global, well, genocide, presumably first in the developing world. Following riots, self-immolations and outright revolutions in Algeria, Tunisia, Morocco, Jordan, Yemen and Egypt, in the span of a few shorts weeks, we believe we have been once again validated. Putting the period in any debate of what Bernanke's runaway money printing means to the life-expectancy of increasing number of people, is the latest news coming out of Sudan where "security forces on
Tuesday arrested opposition leader Hassan al-Turabi and eight other
party officials after they called for a "popular revolution" if Khartoum
did not reverse price rises
." And since economic slack in Sudan is roughly in line with that of the abovementioned other 5 countries, it is safe to say that the bulk of this move is speculation frenzy related, which in turn is purely a function of pervasive and free global liquidity. And this is still just the beginning. As Bernanke will not stop before the Dow hits roughly 36,000 expect these kinds of headlines to be an hourly occurrence.

More from Reuters:

Turabi's arrest comes at a politically sensitive time for the government of President Omar Hassan al Bashir, who stands to lose control over the oil-producing south which last week voted in an independence referendum.

It also comes as Tunisia grapples with fallout from the ouster of its long-time president Zine al-Abidine Ben Ali, who fled the country on Friday after three weeks of violent unrest sparked by social grievances.

Sudan's opposition threatened on Sunday to take to the streets if the government did not remove its finance minister and dismantle parliament over the decision to raise prices on a range of goods.

"This is criminal - how can they arrest a man who is 78 years old and put him in prison? We are scared for him," Turabi's tearful wife Wisal al-Mahdi told Reuters.

Ben Ali's overthrow in Tunisia has reverberated across the Arab world, raising concerns about stability in other countries in the region which share the same mix of social, economic and political problems.

And on the topic of price increases specifically:

Sudan's price increases have sparked student protests in the country's northern agricultural heartland and Khartoum.

The country is grappling with a current account deficit and a currency devaluation that is driving up inflation.

This month Khartoum cut subsidies on petroleum products and key commodity sugar, prompting protests over the past week, quelled only by baton-wielding police firing teargas.

Perhaps it is time someone at 60 Minutes had a follow up interview with Blackhawk Ben, asking him if a united developing world revolution is something he is 100% confident he can also contain...

 


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Tue, 01/18/2011 - 08:52 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

ALLAHU AKBAR!

 

Tue, 01/18/2011 - 08:56 | Link to Comment grunk
grunk's picture

This is as much State Department policy as it is Federal Reserve policy.

Tue, 01/18/2011 - 09:13 | Link to Comment slippery johnny
slippery johnny's picture

Grunk, my thoughts exactly.  I am glad you posted this line of thinking.  But my question is why?  The only thing I can come up with is that the chaos will bring in a one world government after a global world war.  This sucks.

Tue, 01/18/2011 - 09:23 | Link to Comment grunk
grunk's picture

I think they're trying to bring China to the negotiating table (they have a higher food to income ratio than the U.S.), bust up some of these regimes the U.S. doesn't like (food aid to the ones it does like).

The U.S. is threatening to take down the whole world in a financial game of chicken.

bankonzhongguo put it very well on yesterday's China thread:

 "Its the grand game of the 21st century - for the last gasp of whithered colonialists to otherwise break China (again)."

Tue, 01/18/2011 - 12:25 | Link to Comment ElvisDog
ElvisDog's picture

Oh God, enough with the one-world government. What makes you think that even if such a thing was put into place that it wouldn't immediately descend into squabbling and chaos? I think James Howard Kunstler is right - that the world will go in the opposite direction towards smaller regional political units.

Tue, 01/18/2011 - 13:28 | Link to Comment DocLogo
DocLogo's picture

I think we are heading towards a single currency. And the governing body in charge of regulating that currency could be considered a government. I still think we'll have regional elections like we do now. I just think they will be meaningless...sort of the way they are now. I mean, let's face it, it wouldn't be that much different than what we have today. Congress has no oversight over the Fed.

Tue, 01/18/2011 - 09:22 | Link to Comment sushi
sushi's picture

Hillary "Pork Belly" Clinton recently gave a speech in Saudi to the GCC in which she warned them of increased social unrest due to self-serving quasi goverment kleptocrats, inflexible, autocratic political systems and extremely wrong headed fiscal and monetary policies. SHe warned them that if they continued to emulate the US they would be faced with riots and rebellion.

Less than 2 weeks later this prophecy comes true in a US client state. A lot of folks in the ME will now be asking exactly whose side the US is on when it offers "support."

Tue, 01/18/2011 - 10:53 | Link to Comment ChanceIs
ChanceIs's picture

+10 !!!!  LOL .......  "Pork Belly " Clinton

ZH posted a table of the richest politicians yesterday.  "Pork Belly" came in there at about $30 megabucks.  Not that I mind people making money and being rich.  But pleasssssssseeeeeee.  How do you do that on a government salary, President's wife, NY Senator or Secretary of State???  What did she average salarywise since 2000 .... $150K?  Maybe its Bubba's money from all of the speaking engagements.

Just what is our foreign policy anyway???  I guess a national Stockholm Syndrome WRT our Chinese overlords is the goal.  Its so nice not having to worry about making decisions.  Just kiss the hand that so foolishly lends to you and do everything it says.

Tue, 01/18/2011 - 10:26 | Link to Comment pan-the-ist
pan-the-ist's picture

Yes.  We make other nations dependant on our cheap food (cheaper than they can produce themselves thanks to our socialist farmers), and 'modernize' their economies.  Really, who wouldn't rather stitch a baseball then harvest rice?

As Jesus said, give a person free fish and they don't have to fish for themselves.  The next generation will not know how to fish, and famine will take care of the rest.  (Oh, and cheap real estate when the dust settles.)

 

Tue, 01/18/2011 - 10:44 | Link to Comment Doctor sahab
Doctor sahab's picture

south Sudanese oil maybe?

Tue, 01/18/2011 - 08:57 | Link to Comment John Law Lives
Tue, 01/18/2011 - 08:58 | Link to Comment The Rock
The Rock's picture

The Bernank, like a broken record, will just repeat in his pussy-lipped way:

"100 percent"

Tue, 01/18/2011 - 09:09 | Link to Comment EscapeKey
EscapeKey's picture

The Sudanese are clearly mistaken, we are experiencing severe deflation, and besides, producer input prices don't have anything to do with consumer prices, so what are they rioting for?

/At least according to Keynesian students on reddit.

Tue, 01/18/2011 - 09:10 | Link to Comment cossack55
cossack55's picture

I'm sure it is about Steve Jobs and all their Apple stocks.

Tue, 01/18/2011 - 09:19 | Link to Comment Sudden Debt
Sudden Debt's picture

 

 

The "Steve Jobs app." is no longuer supported by Itunes due to errors in the DNA code.

 

 

 

Tue, 01/18/2011 - 11:10 | Link to Comment e_goldstein
e_goldstein's picture

funniest thing i've read this morning.

Tue, 01/18/2011 - 09:12 | Link to Comment John Law Lives
John Law Lives's picture

Wheat and corn prices are surging:

http://www.bloomberg.com/news/2011-01-18/soybeans-decline-on-speculation...

The Ben Bernank should donate his brain to science.  Many scientists believe pathological liars have an altered brain chemistry.  It is good to be 100% of a reference point.

Tue, 01/18/2011 - 10:29 | Link to Comment pan-the-ist
pan-the-ist's picture

We need to end ethanol subsidies.

Tue, 01/18/2011 - 11:21 | Link to Comment John Law Lives
Tue, 01/18/2011 - 11:34 | Link to Comment ciscokid
ciscokid's picture

Brain ? They will find a rotten pea inside his head.

Tue, 01/18/2011 - 09:09 | Link to Comment cossack55
cossack55's picture

Well, if he can control inflation in about 15 minutes, world hunger he can cure on his lunch hour. Nothing is impossible for The Ben Bernank.

Tue, 01/18/2011 - 09:11 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Lighten up, Sudanese. Have you seen the new iPhone 4? It's so much cooler than eating.

Tue, 01/18/2011 - 09:30 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Irony.........

Tue, 01/18/2011 - 09:54 | Link to Comment buzzsaw99
buzzsaw99's picture

It's the shizzle. Sudan should order some takeout and chill.

Tue, 01/18/2011 - 09:12 | Link to Comment Hernando
Hernando's picture

Bernanke along with Greenspan, Hank Paulson, Rubin, former Sen Gramn of TX, Larry Summers should be tried for treason and crimes against humanity.  After an open and fair trial they will easily be convicted.  After the conviction they should be executed by military firing squad.  This is the only message these pigs will understand.

Tue, 01/18/2011 - 09:32 | Link to Comment cossack55
cossack55's picture

Don't forget criminal Graham's wife, the former dishonorable chairwoman of the CFTC.

Tue, 01/18/2011 - 10:23 | Link to Comment Calmyourself
Calmyourself's picture

Firing squad?  far too quick.  Imo, caged no food, except for the four course meal left just outside their reach every day

Tue, 01/18/2011 - 09:13 | Link to Comment Sudden Debt
Sudden Debt's picture

Algeria is the country to watch right now :)

actually... better watch the entire continent of Africa...

Tue, 01/18/2011 - 10:32 | Link to Comment DonnieD
DonnieD's picture

Perhaps in 5 years we look back at Tunisia as the black swan when most eyes were focused on Europe and elsewhere.

Tue, 01/18/2011 - 11:43 | Link to Comment Problem Is
Problem Is's picture

If Mubarak flees Egypt with 1 and half tons of gold... Then I will see black swans and take notice...

Tue, 01/18/2011 - 09:15 | Link to Comment Sudden Debt
Sudden Debt's picture

This month Khartoum cut subsidies on petroleum products and key commodity sugar, prompting protests over the past week, quelled only by baton-wielding police firing teargas.

Sugar went up. No wonder why they are upset! That means Coca Cola and Candy prices will rise!

AND NO MORE CHEAP CAKE!!!

 

Tue, 01/18/2011 - 09:20 | Link to Comment EscapeKey
EscapeKey's picture

So, from what I understand, the gov't got tired of having to spend progressively larger amounts subsidising key commodities, and pulled the rug; same as Indonesia with oil a few years back?

Tue, 01/18/2011 - 10:31 | Link to Comment pan-the-ist
pan-the-ist's picture

Your Coka Cola has sugar in it?  Ours has Corn Syrup.  I assumed Europe had Corn Syrup as well.

Tue, 01/18/2011 - 11:46 | Link to Comment Problem Is
Problem Is's picture

"AND NO MORE CHEAP CAKE!!!"

Hostess Donut Price Increases = Amerikan Riots!

Sheeple:
"No donuts! No peace!"
"No donuts! No peace!"
"No donuts! No peace!"

Tue, 01/18/2011 - 09:22 | Link to Comment Oh regional Indian
Oh regional Indian's picture

if everything originated Out Of Africa, then so might TEOTWAWKI?

Watching the onions here in India. Just to give you an idea of the difference between public demand and market prices... the government is promising a quick return to 5 rupees (8 cents) a kilo while the market is Rs. 60 (approx. $1.50) or more.

TV is a good anti-dote for public fury. 

ORI

http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-w...

Tue, 01/18/2011 - 12:28 | Link to Comment ElvisDog
ElvisDog's picture

4 cents per pound for onions. That seems really cheap. I told my kids that onions are the most commonly eaten vegetable in India and they were mystified/horrified.

Tue, 01/18/2011 - 09:27 | Link to Comment Pants McPants
Pants McPants's picture

The other day someone suggested the ultimate justice for The Bernank, et al would be to drop them in the streets of Tunisia.  If the group could convince the natives of the benevolence of their policies, they would live.  If not, well, we know what happens.

Tue, 01/18/2011 - 09:55 | Link to Comment sushi
sushi's picture

drop them in the streets

You mean like from a helicopter? Seems appropriate. Lots of meat on those bones. Mmmm.

Tue, 01/18/2011 - 09:28 | Link to Comment Quintus
Quintus's picture

Indian police used water cannons to dispel crowds protesting in New Delhi today against fast-rising food prices.

But, but...Ben said there was deflation!  He would never lie to us, would he?

Tue, 01/18/2011 - 09:40 | Link to Comment Sudden Debt
Sudden Debt's picture

THAT'S BECAUSE YOU'RE NOT WATCHING THE RIGHT CHANNEL!!

 

Tue, 01/18/2011 - 09:29 | Link to Comment BurningFuld
BurningFuld's picture

It becomes harder for the corrupt dictators of these countries to funnel off money when the amount going to food subsidies keeps going up. The Caymen Island Banksters must eat first.

Tue, 01/18/2011 - 09:29 | Link to Comment bania
bania's picture

Bernanke is 100% confident he can take a third of the gold from Fort Knox and hop on a plane to Malta... in 15min!

Tue, 01/18/2011 - 09:57 | Link to Comment sushi
sushi's picture

He may be right.

A third of the gold in Fort Knox probably would not even fill his waistcoat pockets.

Tue, 01/18/2011 - 10:08 | Link to Comment Paper CRUSHer
Paper CRUSHer's picture

A typical short late night bedroom conversation at Bennie's:

Mrs Bernanke:"Oh honey did you catch the late news last night.......there's alot of civil unrest going on in many african states due to rising prices?"

Mr Bernanke:"So what",

Mrs Bernanke:"The poor folks,this ain't normal honey. I know our great nation is a major exporter of monetary policy, I mean,could this have anything to do with it ...this QE2 stuff i mean? But look at the consequences of all this dear....please no more QE honey"

Mr Bernanke:"But toots,this time is different..... I have all the policy tools to deal with any situation.Just pass that jar of amphetamines over here and gimme a large glass of water to wash this shit down"

 

 

Tue, 01/18/2011 - 09:54 | Link to Comment alter ego
alter ego's picture

All of this is just a symptom of Peak Oil.

" every calorie of food we eat uses at least 10 calories of energy from oil"

                            

Almost every current human endeavour from transportation, to manufacturing, to electricity to plastics, and especially food production is inextricably intertwined with oil and natural gas supplies.

* Commercial food production is oil powered. Most pesticides are petroleum- (oil) based, and all commercial fertilisers are ammonia-based. Ammonia is produced from natural gas
* Oil based agriculture is primarily responsible for the world's population exploding from 1 billion at the middle of the 19th century to 6.3 billion at the turn of the 21st
* Oil allowed for farming implements such as tractors, food storage systems such as refrigerators, and food transport systems such as trucks
* As oil production went up, so did food production. As food production went up, so did the population. As the population went up, the demand for food went up, which increased the demand for oil. Here we go round the Mulberry bush
* Oil is also largely responsible for the advances in medicine that have been made in the last 150 years. Oil allowed for the mass production of pharmaceutical drugs, and the development of health care infrastructure such as hospitals, ambulances, roads, etc

 

Tue, 01/18/2011 - 10:42 | Link to Comment pan-the-ist
pan-the-ist's picture

1. Technology makes gathering food easier. This has been true for the last 20,000 years.

2. Technology makes gathering food easier. This has been true for the last 20,000 years.

3. Technology makes gathering food easier. This has been true for the last 20,000 years.

4. Technology makes gathering food easier. This has been true for the last 20,000 years.

5. Technology makes gathering food easier. This has been true for the last 20,000 years.*

*it has also made people lazier, hence the need for treatments of diseases that didn't exist 100 years ago.

Tue, 01/18/2011 - 11:42 | Link to Comment trav7777
trav7777's picture

Do you grasp what technology IS?

It is the enablement of the use of energy.

Our technology has been the conversion of OIL joules into joules of other kinds...technology isn't magic that bringeth something from nothing.

"Easier"?  Not in an energy sense.  People act like the oil age has meant less expenditure of energy because people don't have to carry shit.  It's actually the opposite; we consume VASTLY more energy in this supposed "more efficient" and easier reality than we did when we lacked the technology that is supposed to be our savior from the very issues that technology has created.

Tue, 01/18/2011 - 11:49 | Link to Comment Green Leader
Green Leader's picture

You speak like one of us natural resources majors but with very solid financial knowledge.

Perhaps you, ORI and I could start a business...

Tue, 01/18/2011 - 23:04 | Link to Comment pan-the-ist
pan-the-ist's picture

So... it is more effecient to produce food without oil?  What's the problem again?

Tue, 01/18/2011 - 12:34 | Link to Comment ElvisDog
ElvisDog's picture

Technology and energy are different entities. All the technology in the world won't increase the energy content of a barrel of oil. The reality is that energy prices are tightly linked to food prices. We can't feed the current population of the Earth at the current prices without cheap oil.

Tue, 01/18/2011 - 23:06 | Link to Comment pan-the-ist
pan-the-ist's picture

So we have people and animals produce food instead of tractors?

Tue, 01/18/2011 - 11:50 | Link to Comment Dapper Dan
Dapper Dan's picture

Militaries that devour oil and resources in an effort to control oil and resources that they've just devoured, generating larger militaries that devour more of the diminishing resources to control it all along a diminishing return equation.

 

This is from a wise poster on ZH yesterday.

Tue, 01/18/2011 - 11:40 | Link to Comment Problem Is
Problem Is's picture

" we predicted to the dot that his monetary policy would eventually lead to a global, well, genocide, presumably first in the developing world..."

If a Ruling Oligarchy Is Going to Go Down in Flames
The Bernank, Jamie & Lloyd et al... prefer it go down in flames over there first, not over here...

Hence the whole idea behind QE1,2,3,3,4....

Tue, 01/18/2011 - 12:36 | Link to Comment jmc8888
jmc8888's picture

It's simple, the Sudan's will be sacrificed on the alter of British Imperialism.  That's been the plan for decades.  They finally got the north and south to shoot each other in the foot.  Now AFTER the secession, we NOW hear about all the conflicts that are unresolved that might lead to war.

Guess what, these were here before, and they know how to profit off them.  (both sides)

Sudan just bent over for the Queen of England and all imperial monetarists.

Guess whose military the Queen will use again (like vietnam, gulf, iraq, afghan, etc x100) to clean up the mess most likely.

Tue, 01/18/2011 - 12:54 | Link to Comment SDRII
SDRII's picture

Sudan prob morphs to  become the first proxy war of US / China. US has encircled it Somolia, Ethiopia Dijbouti etc. beachfront Indian ocean/red sea perch (AFRICOM) not an accident (in view of Nile water issues and  Iranian/Eritrea/Israeli nexus).  

http://seattletimes.nwsource.com/html/nationworld/2008932196_sudan27.html

Tue, 01/18/2011 - 12:47 | Link to Comment steve2241
steve2241's picture

And another thing!

How soon before we can expect an Interpol Red Notice for that missing 1.5 (light, sweet) tons of gold???

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