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Why Haven’t Riots Hit the US Yet?
As is
already well known, inflation has begun to spread throughout the financial
markets and world economy.
As you can
see, commodities of all kinds are soaring. You’ll note, in particular, that
agricultural commodities have been top performers, trailing only Silver in
price appreciation. However, this performance is even more significant when you
consider that it occurred in half of the time period measured above.
Indeed,
Agricultural commodities were laggards during most of QE 1. It was only when
the Fed introduced QE lite in August ’10 and QE 2 in November ’10, that
Agricultural prices began to explode higher:
As you can
see, The Rogers Agricultural index only broke above its multi-year resistance
level after the Fed indicated it was going “all in” on its reflation efforts
with QE lite.
This in turn
has resulted in riots and revolutions worldwide. Already we’ve seen this occur
in Tunisia, Algeria, the Ivory Coast, Egypt, Libya, Bahrain, Iran, and now
Saudi Arabia. We’ve also seen the start of this in China.
The primary
driver of these situations has been higher food prices. Food accounts for 50%
of spending in many emerging markets. With food prices hitting record highs and
going higher, many folks are literally starving. As a result, they’ve become
violent and are moving to overthrow the elites in control of their countries.
This
situation is a stark warning of what’s to come in the US. While many
believe the US is immune to this
kind of disorder, ZeroHedge recently noted that the US has a similar wealth gap to most
emerging markets:
The reasons
the US hasn’t been gripped by riots are the following:
1) The
security nets (food stamps, welfare, etc) continue to keep lower income
Americans afloat… for now.
2) Food
in the US is so processed that increases in agricultural prices don’t pass
through as rapidly into higher food prices.
Neither of
this will last much longer. Regarding #1, the US Government is broke. In fact
they’re so broke than an aid to Nancy Pelosi (who I can’t stand) has revealed
that the US Government might actually shut down at some point in the near
future.
As for #2,
commodities will be spiking even higher once the following is digested by the
markets:
This is the
weekly chart for the US Dollar. As you can see, we have just broken the
multi-year trendline. What does this mean? That the momentum that maintained
the US Dollar from the 2008 lows has been BROKEN.
It is
literally now “do or die” time for the US currency. If the US Dollar does NOT
rally HARD right now… then we’re triggering the massive H&S pattern in
short course and on our way to a 50% devaluation:
Get Ready
Now!
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
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I call it The Financial Crisis “Round Two” Survival
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Again, this
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PPS. We ALSO
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You can
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Ben Bernanke to Jean-Claude Trichet: 'Hahahahahah my PONZI is BIGGER than your's'
ponzi envy?
JC Trichet's reply : Hahahahah...but I have Angela/Sarkozy for me. If you had Sarkozy to kick your butt every day and Angela's boobs to smother you silly...you'd realise I don't need a mega Ponzi to feel king of the heap. I'm the man...between a french rock and a hard soft place. Try telling the chinese not to finger me, like I do every day, you'll understand mandarin pickle burns deeper than Ben's tabasco sauce.
Whoever wasted time writng this piece.. leave your job and go riot. No? you dont want to do it? There you go .. you have your answer
God, I don' even have a job and I'm not rioting yet.
Snow
Rioting is just another job Americans just dont want to do.
Rioting isn't in the national character.
US citizens are not accustomed to - or even inclined toward - making demands of our government, whether it be for bread, jobs, money, free healthcare or regime changes. We leave that silly business to the French. We're more likely to walk away from a system than demand more of it.
With the exception of a few delusional socialist diehards on the coasts, all we want from our governments is for it to leave us alone, make it easy for us to go on with our business, and vigorously defend us militarily if the country - excuse me, "US interests" - are attacked. The only "social service" we demand is for our veterans.
The communists tried to get the people to "rise up against the government" during the first depression. Veterans (rightfully) agitated for the paychecks they earned, but otherwise citizens weren't interested in revolution, so the movement fizzled. The Powers ended up having to "give" us the socialism we never demanded (SSI).
Seems they try to pull it off every 40 years or so.
During the 70's they tried to capitalize on the idealism of the baby boom cohort. Much of the socialist agitation of the 70's was facilitated by the FBI (COINTELPRO), but no real "revolution" came out of it. We never demanded that the Federal goverment take over the educational system back then, for instance, so eventually they just "gave" it to us (Dept of Education).
Moving right along . . . Notice this time they're trying to "give" us nationalized health care, after having purposefully collapsed our country, figuring now boomers are corn-fed, dumbed down, unhealthy and needy and passively willing to let the government take over our care and feeding. Instead what they're getting is a bunch of admittedly fat, stupid, unhealthy, belligerent and ARMED citizens demanding the government get off their backs.
In other words: "Good luck with your revolution, guys!"
For exact reason you mentioned, the U.S. people really deserve the government they are having. LOL
but why don't you hire mexicans to do that for you?
You are so politically incorrect, SD. They are not all Mexicans. I prefer the term Talupas, which vaguely includes all illegal chili bellies regardless of point of origin.
When I am immigration czar, there will be a bounty on Talupas, and unlimited visas for Scandinavian Stewardesses and anyone recommended by WB7;)
YOU HAVE MY VOTE!!!!!!
Can you include some of those stewardesses from Singapore airlines as well???? damn they are sexy