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Belarus Hyperinflation Update: Food Runs Out As Friendly Foreigners Take Advantage Of The "Favorable" Exchange Rate Arb

Tyler Durden's picture




 

Yesterday we had the first case study of what happens in a hyperinflation, when we noted that the local central bank had just hiked interest rates from 22% to 27%. Net result for the economy? Zero. Today is case study #2 where we learn what happens to an imploding economy which happens to be surrounded by friendly neighbors who just happen to find themselves in a massive arbitrage courtesy of a currency that is losing multiples of its value on a monthly if not daily basis. Per Bloomberg: "Belarus’s supermarkets are running out of meat as Russians take advantage of a currency crisis that a devaluation and the world’s highest borrowing costs have failed to stem. “All meat has gone to Russia,” Alexander Andreyevich, an 82-year-old former tractor-plant worker, said Aug. 25 in Minsk, the capital. “My relatives near the Russian border called me a few days ago and said the shops are empty."..."Private stall owners simply go and buy meat from state- owned vendors and sell it a couple of steps away for a hefty profit,"Deputy Agriculture and Food Minister Vasily Pavlovsky told reporters in Minsk Aug. 24. The government banned individuals in June from taking basic consumer goods such as home appliances, food and gasoline out of the country. Russians, buoyed by the removal of border checkpoints July 1 as part of a customs union, have circumvented the restrictions." Funny- if the locals had preserved their purchasing power by holding their money in gold, they would not find themselves in a position where those who still have a stable fiat exchange rate (for the time being) can literally steal products from under their noses for a paltry sum as sellers scramble to converts products into some currency before it is devalued even more tomorrow.

More from Bloomberg:

The crisis has sparked protests as Belarusians vent their anger at President Alexander Lukashenko, dubbed Europe’s last dictator by the administration of former U.S. President George W. Bush. While the authorities have sought to control food costs to quell public discontent, buyers from neighboring Russia have pushed meat prices higher.

 

Belarus will allow the ruble to float from mid-September and will remove restrictions on depositors seeking to exchange local currency for dollars and euros, Lukashenko said yesterday.

 

“The Belarusian ruble’s exchange rate will be determined by supply and demand, as with any other commodity,” he told the government and central bank, according to the Belta news service. “We will not support the exchange rate artificially.”

What happens then is simple: revolution, as the currency will collapse into a hyperinflationary vortex. We fully expect the exchange rate a year from today to be several million percent higher, as the ghost of Weimar and all other failed Keynesian experiments moves in to haunt this former Soviet satellite country.

It gets worse:

As well as meat, services are also attracting Russians, who make up one in two visitors at the ‘Lode’ spa 160 kilometers (100 miles) north of Minsk and prefer luxury suites, a representative of the resort, Natalya Varvantseva, said Aug. 26 by phone.

 

Many of them pay with Russian rubles or dollars, the scarcity of which has pushed black-market exchange rates far below the central bank’s official 5,061 rubles per dollar.

 

The unofficial rate slipped to 9,900 by Aug. 25, according to a survey of companies offering foreign currency conducted by Infobank.by, a financial-news website. Prokopovi.ch, a service that matches buyers and sellers of foreign currency online, quoted 8,842 rubles per dollar yesterday.

And again, the case for gold:

The only legal way for citizens to obtain foreign currency is by waiting at licensed exchange booths, where queues often exceed a hundred and the names of people who have left their details on previous visits are called daily.

If only these people had known in advance what happens when a deranged Keynesian madman is in charge of it all... Oh well, they will learn now.

 

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Wed, 08/31/2011 - 13:27 | 1619408 nope-1004
nope-1004's picture

Predatory.

Coming to another country near you.

 

Wed, 08/31/2011 - 13:29 | 1619419 Max Hunter
Max Hunter's picture

Bennie can stop that in its tracks from happening here... in ummm... 20 minutes... maybe 22

Wed, 08/31/2011 - 13:31 | 1619434 SheepDog-One
SheepDog-One's picture

220, 221....whatever it takes.

Wed, 08/31/2011 - 13:40 | 1619481 redcorona
redcorona's picture

President Alexander Lukashenko, dubbed Europe’s last dictator by the administration of former U.S. President George W. Bush.

So he's a good guy then.  Was this a plutocratic take down? 

Wed, 08/31/2011 - 14:11 | 1619628 russki standart
russki standart's picture

Read and weep. This will, to some extent exactly what happens in the US when the dollars depreciates dramatically against other currencies and commodities.  Foreigners will out bid us on many of the essentials. 

Wed, 08/31/2011 - 14:20 | 1619678 kridkrid
kridkrid's picture

As for other currencies, it's a race to the bottom, brother.  As for commodities... everyone has the same opportunity to convert their paper money into something of value.  Every man for himself.

Wed, 08/31/2011 - 14:24 | 1619710 tmosley
tmosley's picture

Depends on what is the first to fall, or if they will all fall at once.  These are unprecedented times.

Of course, the owners of gold and silver will keep a strong bid on things as well.

Wed, 08/31/2011 - 15:17 | 1619962 spiral_eyes
spiral_eyes's picture

stop inflation in 15 minutes, bitchez

Wed, 08/31/2011 - 14:49 | 1619833 Oh regional Indian
Oh regional Indian's picture

Krid, so the game really becomes where said commodities are grown/found and who controls the supply routes in the face of $200 + oil (easily in 3 months when the food crisis will really hit). America's current concentration is oil supply chain, but Agenda 21 looks like they will have an iron-lock on the food supply chain in the continental US anyways. And it is happening fast, in lock-step with an ever increasing population on SNAP. None of this is of course co-incidental.

It's going to get really interesting really fast, because the one thing no government can control for too long  without violence, is a hungry population.

Next WAR will be triggered over food/water, not oil.

V

http://aadivaahan.wordpress.com/2011/08/30/humor-me/

 

Wed, 08/31/2011 - 16:09 | 1620297 Mike2756
Wed, 08/31/2011 - 14:42 | 1619796 Todd Horlbeck
Todd Horlbeck's picture

I don't buy the case for gold in hyper-inflation, if you actually want to continue live a country that is going through it.  If I had limited food, I wouldn't trade it for gold if I had plans to stay put.  Society completely disintergates and breaks down to a barter society for nessisities.

In other words, if you had limited food would you really trade it for gold and see your family starve?

However, if I had plans to leave, I'd convert everything to gold which would store value until I arrived at my destination.

 

Wed, 08/31/2011 - 14:48 | 1619828 MFL8240
MFL8240's picture

What do you see as the answer to the confetti game and inevitable hyperinflation.  

Wed, 08/31/2011 - 15:27 | 1620032 Jason_1sandal
Jason_1sandal's picture

I see the soundness of having gold in this situation. You could sell your gold for, what is it, Russian rubles, and afford to buy food cheap. You never know the Peso may be worth more than the dollar soon....

Wed, 08/31/2011 - 15:38 | 1620093 Potemkin Nation
Potemkin Nation's picture

Gold isn't for use during the hyperinflation.  It's for after.

Wed, 08/31/2011 - 15:48 | 1620159 Raymond Reason
Raymond Reason's picture

Agreed. 

Wed, 08/31/2011 - 16:03 | 1620261 Jason_1sandal
Jason_1sandal's picture

I agree also, I have had to sell a small portion of my PM's to catch up on some long over due bills. I'm not saying to sell all of it, but in a pinch it has been a godsend. I won't have to worry about food as I have stocked up quite enough. I won't be doing anything with my PM's now except to hold until we reset or whatever happens.

Wed, 08/31/2011 - 20:59 | 1621219 Praetorian Guard
Praetorian Guard's picture

"Reset"??????? Thats not the same rosey picture as DoD speculates...

Wed, 08/31/2011 - 20:58 | 1621214 Praetorian Guard
Praetorian Guard's picture

If the shit fails globally, copper and lead will do you more good than gold.

Thu, 09/01/2011 - 03:53 | 1621969 AnAnonymous
AnAnonymous's picture

I don't buy the case for gold in hyper-inflation, if you actually want to continue live a country that is going through it.

///////////////////////////////////////////////////////////////////////////

But no, that is right. Gold would protect nothing. People with the fiat money would transfer the gold to their own pockets.

What is shown here is the effects of Smithian economics. People with gold would only transfer their gold to money fiat users.

But hey, that is a run for profit blog. And propaganda is better to build profits than facts. It is all the story of marketing. Propaganda aiming at collecting a profit.

So yep...

Wed, 08/31/2011 - 15:43 | 1620123 Mike2756
Mike2756's picture

That's ok, it'll boost exports.

Wed, 08/31/2011 - 13:26 | 1619409 achmachat
achmachat's picture

does this mean the US meat will end up in Canada and Mexico?

Wed, 08/31/2011 - 13:50 | 1619522 NotApplicable
NotApplicable's picture

I was going to comment that I'm glad I don't live anywhere near the border, but then I remembered the NAFTA superhighway complete with a Mexican port in Kansas City. Between all of the rail, air, freeway and river transportation avenues available (KC is the most escapable major city in the US), that place could become the black hole that swallows the output of all of the flyover states.

Interestingly enough, KC is also where fedgov hoards all of its purchased dairy products (cheese!). Will they be exported too? Or used to bait the FEMA camps?

Wed, 08/31/2011 - 14:07 | 1619607 Abiotic Oil
Abiotic Oil's picture

Are you talking about the NAFTA SuperHighway that Bilderberg puppet Rick Perry was a big proponent of?  Before he was forcibly vaccinating young girls and and vetoing legislation to shut the TSA down?

Wed, 08/31/2011 - 14:13 | 1619636 russki standart
russki standart's picture

No, I think you are confusing Rick Perry with governor Rick Perry, notorious switch hitter and sexual pervert.

Wed, 08/31/2011 - 14:16 | 1619656 Abiotic Oil
Abiotic Oil's picture

Oh right...  And I need to be careful not to confuse Governor Rick Perry and "candidate" Rick Perry with pre-Governor Rick Perry who said Hillarycare and forced health insurance were great, just before he was Al Gore's Texas campaign manager.

Wed, 08/31/2011 - 14:44 | 1619810 Oh regional Indian
Oh regional Indian's picture

Brilliant exchange gentlemen. 

<Golf Clap>

V

Wed, 08/31/2011 - 16:12 | 1620311 Mike2756
Wed, 08/31/2011 - 17:08 | 1620553 FEDbuster
FEDbuster's picture

That isn't the same Rick Perry who was Al Gore's campaign chairman in Texas, was it?

Wed, 08/31/2011 - 13:27 | 1619410 LFMayor
LFMayor's picture

How's this one chart on the "Baltic dry ass drubbing" index?

Wed, 08/31/2011 - 13:30 | 1619430 SheepDog-One
SheepDog-One's picture

'Tractor plant worker'....ominous.

Wed, 08/31/2011 - 13:37 | 1619464 Gully Foyle
Gully Foyle's picture

SheepDog-One

"'Tractor plant worker'....ominous."

I've seen that movie.

Wed, 08/31/2011 - 13:35 | 1619433 Henry Chinaski
Henry Chinaski's picture

"Private stall owners simply go and buy meat from state- owned vendors and sell it a couple of steps away for a hefty profit,"

"Private banks simply go and buy fiat money from the FED and sell it a couple of steps away for a hefty profit."

fixed it

Wed, 08/31/2011 - 13:33 | 1619446 PSEUDOLOGOI
PSEUDOLOGOI's picture

Never let a good crisis go to waste.  Here comes Russia to the "rescue" one way or another...  The world is heating up...

Wed, 08/31/2011 - 13:36 | 1619460 Gully Foyle
Gully Foyle's picture

Good fucking lord! This is the perfect opportunity for Bono and Geldoff to stage a massive concert.

Quick, quick name a Belorussian band. We need that local flavor.

Fuck me, Gore needs some media coverage...maybe Global warming, scratch that, Climate change can be combined with SAVE THE BELORUSSIANS.

GOT IT! SAVE THE BELORUSSIANS WITH CAP AND TRADE!

Written by Sting [& Sergei Prokofiev!]

In Europe and America there's a growing feeling of hysteria
Conditioned to respond to all the threats
In the rhetorical speeches of the Soviets
Mister Krushchev said, 'We will bury you'
I don't subscribe to this point of view
It'd be such an ignorant thing to do
If the BeloRussians love their children too

How can I save my little boy
From Oppenheimer's deadly toy?
There is no monopoly on common sense
On either side of the political fence
We share the same biology
Regardless of ideology
Believe me when I say to you
I hope the BeloRussians love their children too

There is no historical precedent to put
Words in the mouth of the president
There's no such thing as a winnable war
It's a lie we don't believe anymore
Mister Reagan says 'We will protect you'
I don't subscribe to this point of view
Believe me when I say to you
I hope the BeloRussians love their children too
We share the same biology
Regardless of ideology
What might save us, me and you
Is if the BeloRussians love their children too

 

 

Wed, 08/31/2011 - 14:07 | 1619609 russki standart
russki standart's picture

Brilliant!, Gully Foyle <G>

Wed, 08/31/2011 - 14:50 | 1619838 Oh regional Indian
Oh regional Indian's picture

Oppenhiemer's deadly toy. Hmmmmmm!

Awesome Gully.

V

Wed, 08/31/2011 - 20:17 | 1621124 Goldenballs
Goldenballs's picture

If the Foreigners have brought all the the food and there is nothing to eat,eat the Foreigners and why let a good crisis go to waste.

Wed, 08/31/2011 - 13:36 | 1619461 disabledvet
disabledvet's picture

How the hell do you buy gold in a communist dictatorship? Anywho i find it hard to believe Venezuala isn't next. Sounds like intervention risk...

Wed, 08/31/2011 - 13:49 | 1619507 Id fight Gandhi
Id fight Gandhi's picture

Smuggle it in. Melt it into unassuming objects and paint it.

If the gov. doesnt like it, fuck em. They're fine with everyone starving.

I would assume someone could come in use gold buy tangible goods to export them out and also be "paid" in the fiat currency to make it look legit.

Wed, 08/31/2011 - 13:51 | 1619530 fuu
fuu's picture

"We have to use the indefinite article, "a dildo", never … your dildo."

Wed, 08/31/2011 - 13:50 | 1619524 Missiondweller
Missiondweller's picture

Same way Vietnam does, on the black market.

Wed, 08/31/2011 - 14:34 | 1619765 PSEUDOLOGOI
PSEUDOLOGOI's picture

bribes work

Wed, 08/31/2011 - 13:39 | 1619473 becky quick and...
becky quick and her beautiful mouth's picture

does this mean i can get a screaming deal on a belarus tractor now?

Wed, 08/31/2011 - 13:50 | 1619521 DosZap
DosZap's picture

becky @13:39,

Yep, but shipping cost is  a bitch.

Plus you will be arrested for a State Violation of Agenda 21 for attempted USE.All foods henceforth must be Monsanto, or ADM certified 10-15yrs/ All monies ur possession forfeited to STATE agency who are caught ju max penalty for eating food grown elsewhere.

Ju haff vin varrned!!

Wed, 08/31/2011 - 14:29 | 1619736 Strider52
Strider52's picture

All of your Belarus tractors are now belong to us.

Wed, 08/31/2011 - 14:33 | 1619757 bbq on whitehou...
bbq on whitehouse lawn's picture

Do you have a big sail boat? If so, then yes. There is risk involved, like sinking, pirates and such. if you pay in cash, just pray those dollars you bring dont collapse to zero before you get there. Otherwise the deal is off.

 

Wed, 08/31/2011 - 15:20 | 1619984 Debugas
Debugas's picture

some farmers in neighbouring Lithuania do get EU financing and use it to buy cheap tractor and other machinery for their farms from Belorussia because it is much cheaper than buying from Germany.

Wed, 08/31/2011 - 13:41 | 1619485 baby_BLYTHE
baby_BLYTHE's picture

John Maynard Keynes on run-away inflation:

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens."
"Lenin was certainly right," John Maynard Keynes continued in his 1919 classic, The Economic Consequences of the Peace.
"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."

Wed, 08/31/2011 - 14:53 | 1619857 bbq on whitehou...
bbq on whitehouse lawn's picture

Always liked Marx and Lenin.  Because to their ownself they were true.

Wrong, but you dont have to be right to believe.  They held on to their belief to the bitter end.

You can have character and be wrong. its those without character who hold nither moral or ethical nor logical bearings that i dispise.

"To thy'n own self be true."  You can't lie to your heart nor to your god. Only you can fine morality and only you can ignore it.

Humanity is all and nothing. It is all we create for ourselves and nothing we do not. The flower has no morality nor does the spider who hides within.

Only us few in the universe have a sense of betterment. We can be and act better then the flower or spider. We can and do decide to be and act with a moral code.

"Judge not yet the be judged. " I am ready for judgement; are you?

 

Thu, 09/01/2011 - 03:55 | 1621971 AnAnonymous
AnAnonymous's picture

"Judge not yet the be judged. " I am ready for judgement; are you?

--------------------------------------------------------------------

US citizens collegial answer: "we are ready to be the judge; are you?"

Wed, 08/31/2011 - 13:42 | 1619489 Texas Ginslinger
Texas Ginslinger's picture

"Private stall owners simply go and buy meat from state- owned vendors and sell it a couple of steps away for a hefty profit,"...

One more reason to go vegetarian .....

Wed, 08/31/2011 - 13:44 | 1619497 Comay Mierda
Comay Mierda's picture

just imagine when this shit hits Amerika

 

 

Wed, 08/31/2011 - 13:50 | 1619523 Kurion
Kurion's picture

How far down do you surmise those profits trickle down?

Wed, 08/31/2011 - 13:51 | 1619531 TooBearish
TooBearish's picture

TY - in other news -

Greece Denies Reports It Hired U.S. Law Firm for Euro Exit

Wed, 08/31/2011 - 13:51 | 1619532 kaiten
kaiten's picture

Greece should take a note. This will happen, when/if they leave the eurozone. New drachma down 90%, prices up 90%.

Wed, 08/31/2011 - 13:53 | 1619540 High Plains Drifter
High Plains Drifter's picture

black market here we come?  wait a minute. i aready do that...............oh my

Wed, 08/31/2011 - 13:54 | 1619548 JJSF
JJSF's picture

For those offshoring their businesses there the expenses just get lower and lower until things eventual get so bad that everything in the office is stolen.

Wed, 08/31/2011 - 13:56 | 1619555 Shameful
Shameful's picture

Huh amazed that the MSM hasn't cheered on this as a massive success to boost exports.  Can't even keep meat on the shelves, everyone is hungry to by cheap Belorussian goods, the Belorussians are just hungry.  Central planning works...just ignore the suffering of the people.

Wed, 08/31/2011 - 13:59 | 1619573 High Plains Drifter
High Plains Drifter's picture

shades of price controls and nixon.........

 

if the inflationary vortex starts there, it will cause all neighboring fiat regimes to crumble as the downward spiral in the vortex gathers steam and speed and the black hole of finance gets bigger and bigger.  shall we in the gulag of amerika watch in awe and consternation this event, which is our future........

Wed, 08/31/2011 - 14:32 | 1619750 tekhneek
tekhneek's picture

We just printed their GDP while you were commenting. I don't think this domino will really do anything. The PIIGS will though.

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

GDP (PPP) 2010 estimate  -  Total $131.201 billion[3]   -  Per capita $13,909[3] 
Wed, 08/31/2011 - 14:02 | 1619588 High Plains Drifter
High Plains Drifter's picture

i wss watching the history channel last night and they were talking about the drug war.......they said a kilo of coke at the source is about 2000. by the time it hits the streets in chicago , it is about 100,000.  imagine what will happen to mexico if the united states goes into a inflationary vortex...

Wed, 08/31/2011 - 15:51 | 1620175 GFKjunior
GFKjunior's picture

Probably accept gold as payment. I used to live near the border and traveled throughout Mexico extensively and I have never seen a narco not wearing massive gold jewelry. Plus it's in our people's history, Mexico is the largest producer of silver. Billionaire Hugo Salinas Price strongly advocates returning to a silver dollar, mexico may have the last laugh in currencies.

 

 

http://www.cobdencentre.org/2011/05/hugo-salinas-price-silver-to-be-monetised-this-year-in-mexico/

Wed, 08/31/2011 - 16:02 | 1620253 bbq on whitehou...
bbq on whitehouse lawn's picture

The price of a kilo of coke will drop vs gold.

Gold isn't what is wanted  what is wanted is rent and women money.

It doesn't matter if rent costs a cool mill or 300$ a month that will always be the price of a gram.

Wed, 08/31/2011 - 14:04 | 1619594 Bam_Man
Bam_Man's picture

The Belarusian ruble has been reduced to rubble.

Wed, 08/31/2011 - 14:05 | 1619598 Negro Primero
Negro Primero's picture

"The main objectives of the National Bank (of Belarus) shall be as follows":

  • protecting the Belarusian ruble and ensuring its stability, including its purchasing power and the rate of exchange (link not working) relative to foreign currencies;
  • developing and strengthening the banking system of the Republic of Belarus; and
  • ensuring efficient, reliable, and secure functioning of the payment system.

...priceless: "Gaining profit shall not be the main objective of the National Bank."

P.D.

As for the site of the National Bank: "It's not just you! http://nbrb.by looks down from here!"

http://www.downforeveryoneorjustme.com/the%20site%20of%20the%20National%...

Wed, 08/31/2011 - 14:06 | 1619602 gratefultraveller
gratefultraveller's picture

It's not so extreme here on the german-swiss border, however the influx of suddenly-Euro-rich Swiss (their currency having appreciated by approx. 30% in the last 12 months) is certainly noticeable, in shops, restaurants and pubs, even 60-70 km inland.

For now that is a good thing, as there is still enough "stuff" in germany, and it keeps up the local economy (most edible stuff in the shops that is not pre-packaged comes from around here).

Funny enough, it is not Germany that has an export limit on meat, it is Switzerland that has an import limit - something like a couple of kilos - to protect (and rightly so) their local farmers.

Wed, 08/31/2011 - 14:19 | 1619669 Negro Primero
Negro Primero's picture

..but you should remember that not a long time ago it was just the opposite.

Wed, 08/31/2011 - 14:39 | 1619788 gratefultraveller
gratefultraveller's picture

Not sure how old you are, but I have to go back 45 years to remember times when we used to go shopping across the border. We used to pay something like 0,86 Deutschmark for a Swiss Franc. Shopping trip to Schaffhausen every saturday morning, then off we went to explore the swiss cities, mountain lakes and alpine passes. Very very few cars around back then. I remember I was impressed that there was warm water and background music in the restrooms of the supermarkets.

As for petrol I have to agree with you, at least for gasoline, I used to cross the border (10 mins from here) to "fill 'er up" until a few months ago.

However, I just realized that had the swiss not had protective tariffs on meat to keep their local (very high) costs/prices competitive, with travellers checked and transgressing ones heavily fined regularly at border crossings, we might have had a similar "meat exodus" to the one described in the article.

PS. Did you have to make that remark? Remembering those times so far back makes me feel old... lol.

Wed, 08/31/2011 - 15:31 | 1620053 Negro Primero
Negro Primero's picture

...hahaha, but don't worry my friend, as one of your countrymen once said:

"Keep true to the dreams of thy youth"

- Friedrich von Schiller

Wed, 08/31/2011 - 14:09 | 1619617 Caviar Emptor
Caviar Emptor's picture

Great reporting by Tyler, as usual. Gold wins out when central bankers gone wild rule the roost. They're all going to look like crazy scientists that blew themsleves up

Wed, 08/31/2011 - 14:18 | 1619634 linrom
linrom's picture

Stupid post! It has nothing to do with hyperinflation, but it's just a plug for gold. Everyone should buy gold, and then buy all the meat in Belarus for 1994 scrap PC memory with gold-plated leads!

As long as long as mercantilist economies are allowed to collude with western bankers and corporate guidos to exploit floating exchange rates, then all fiat should turn to shit. And as long as you can buy gold with shit, gold is shit too. But this is too complicated for gold-bugs or Austrian School of economics types to understand. Only ex-finance types, the ones who sold you all the dot.com and net.com stocks hope to turn their amassed fiat into something worth anything. Fu*k you! You are no better than bankers and all those still working on Wall Street , and that's you TDs.

Wed, 08/31/2011 - 22:02 | 1621391 prole
prole's picture

linrom, although junked, did touch on my theory that the masters of the game, because they can print funny money and "buy" gold with it, can rule us forever. We have to earn money to buy gold, while they print and obtain free all they want, (again) forever.

Wed, 08/31/2011 - 14:14 | 1619644 gkm
gkm's picture

Is this like people using foodstamps to buy food they can punt to someone who isn't destitute?

Wed, 08/31/2011 - 15:23 | 1619998 Debugas
Debugas's picture

president ordered to give-away one-time rising food price compensation packages (in the amount of 100 USD payed in local currency of cause) for pensioners and other socially endagered groups

Wed, 08/31/2011 - 14:33 | 1619663 TomGa
TomGa's picture

Similar results occurred during the Irish Potato Famine.  It wasn't that there was an absolute shortage of potatoes, rather it was that a better price for what remained following the blight was obtained in the export market. The end result was that the Irish couldn't afford to eat and what food was left was sold abroad. History has a nasty way of repeating itself.  

Wed, 08/31/2011 - 14:36 | 1619775 Negro Primero
Negro Primero's picture

No sorry, it's different..

"Clearly, during the years 1845 to 1850, the British government pursued a policy of mass starvation in Ireland with intent to destroy in substantial part the national, ethnic and racial group commonly known as the Irish People...Therefore, during the years 1845 to 1850 the British government knowingly pursued a policy of mass starvation in Ireland that constituted acts of genocide against the Irish people within the meaning of Article II (c) of the 1948 [Hague] Genocide Convention."[134]

http://en.wikipedia.org/wiki/Great_Famine_%28Ireland%29

Wed, 08/31/2011 - 17:16 | 1620585 CompassionateFascist
CompassionateFascist's picture

Right. A Nation (then, Ireland) is destroyed...by destroying its urban/rural middle class. Like the Red Jews did (via Terror Famine) in White Russia, Ukraine, Kazakhstan during late 1920s-early '30s. And as the globalists intend to do now, worldwide.  

Wed, 08/31/2011 - 17:37 | 1620673 hedgeless_horseman
hedgeless_horseman's picture

The English landlords shipped the Irish produce to England and let the Irish starve.

Wed, 08/31/2011 - 22:06 | 1621400 prole
prole's picture

Please note the new Indian/Chinese/Saudi land grabs in Africa.

Thu, 09/01/2011 - 03:56 | 1621972 AnAnonymous
AnAnonymous's picture

Please note the new Indian/Chinese/Saudi land grabs in Africa.
'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

Yep but they are still behind the effort of Western countries, especially the US.

Wed, 08/31/2011 - 14:19 | 1619671 Fix It Again Timmy
Fix It Again Timmy's picture

I'll take all the "shit" you have, 5000 years of human interaction can't be all wrong...

Wed, 08/31/2011 - 14:20 | 1619679 buzzsaw99
buzzsaw99's picture

the frauderal preserve can fix this.

Wed, 08/31/2011 - 14:28 | 1619731 rambler6421
rambler6421's picture

Bread lines bitchez!

Wed, 08/31/2011 - 14:47 | 1619821 onlooker
onlooker's picture

---Becky----

Belarus Tractors can not be imported any more because they do not meet EPA standards. Australia and Viet Nam buy large numbers of them. Too bad, any 14 year old with a hammer and pocket knife can fix one.

Wed, 08/31/2011 - 14:56 | 1619879 Scalaris
Scalaris's picture

Kinetic Meatball Confiscation

Wed, 08/31/2011 - 15:00 | 1619897 americanspirit
americanspirit's picture

Ah yes, my family has no food. I think I shall go into my pasture where I have buried my gold coins and dig one up and take it to the market to buy food. Hmmmm. Who are these people following me home?

Wed, 08/31/2011 - 17:18 | 1620595 CompassionateFascist
CompassionateFascist's picture

Have gun, will Travel.

Wed, 08/31/2011 - 22:08 | 1621405 prole
prole's picture

Fertilizer for your new garden.

Wed, 08/31/2011 - 15:21 | 1619988 Leraconteur
Leraconteur's picture

if the locals had preserved their purchasing power by holding their money in gold, they would not find themselves in a position where those who still have a stable fiat exchange rate 

The problem with this is that the Russians are no fools and realize that the Belarussians will pay for a loaf of bread with silver or gold, so the exchange rate would be massively in favor of the Russians and they would NOT have preserved their purchasing power if they ever exercised the usage of gold/silver as means of exchange.

PM fanatics ignore this historical fact constantly. If you cannot exchange your PM for another currency, it is worthless when buying food and is subject to asset deflation and would be valued at pennies on the dollar just like other assets in a deflationary collapse.

Wed, 08/31/2011 - 15:25 | 1620015 Leraconteur
Leraconteur's picture

Clearly, during the years 1845 to 1850, the British government pursued a policy...constituted acts of genocide against the Irish people within the meaning of Article II (c) of the 1948.

 

Of course applying a ruling from 1948 to events a century prior is extremely logical.

 


Wed, 08/31/2011 - 15:42 | 1620112 Negro Primero
Negro Primero's picture

...oops, a new British Revisionism is coming?

Wed, 08/31/2011 - 18:14 | 1620814 Grimbert
Grimbert's picture

The problem with the Irish is that they have too long a memory. The problem with the British is that theirs is too short.

I heard that years ago, I don't kow who said it.

Wed, 08/31/2011 - 15:25 | 1620018 rustymason
rustymason's picture

"as the ghost of Weimar and all other failed Keynesian experiments moves in to haunt this former Soviet satellite country."  I don't understand.  I didn't think Lukashenko was a Keynsian. But he is letting his currency float, isn't he? Nevertheless, if all countries are trying to race to the bottom, then he would be a winner, wouldn't he?

Wed, 08/31/2011 - 15:25 | 1620020 Debugas
Debugas's picture

belorussians can go and exchange gold easily at national bank for local currency (but not vice versa). Damn they can even go to the neighbouring Latvia and sell there their gold for euros

Wed, 08/31/2011 - 16:55 | 1620504 Leraconteur
Leraconteur's picture

The exchange rate for this will also suck.

If you have ever sold your gold then you would know that the rate you get is crap. If conditions are dire and they know you need to sell, it's even worse. The Latvians/buyers aren't stupid and will screw them on the price.

When you need to use your PM and sell it to buy food or ammo, that's when PM's have the least value. No one who owns a farm is going to sell you non-surplus food, ammo or guns for gold. They will barter, trade or take a usable commodity.

If one has a farm and you come up to me and want to buy some chickens and potatoes and all you have is gold, I am not selling if the social situation is so dire that money has no value. I want something I can use.

If I have excess food then I take your PM at a rip-off rate. Your gold, at $6,000 an ounce, will purchase one chicken per ounce if TSHTF. I won't care that your last Zurich spot, printed on dog-eared paper, 'proves' that the gold is worth $6k. One ounce, one chicken. Take it or die.

Do some reading. This is what happens when things fall apart. During the Depression, escaping a collapsing Russia, getting out of Eastern Europe in 1946, escaping the Nazi's if you didn't see the signs - people will exchange an ounce of $6,000 gold for a $200 train ticket to get away from harm.

You guys simply haven't thought this through, and every time you are presented with evidence to the contrary of your thesis you stick your head in the sand.

Wed, 08/31/2011 - 22:12 | 1621417 prole
prole's picture

LeRaconteur you are well named brother! Thank you for providing that highly entertaining rant!

Wed, 08/31/2011 - 16:03 | 1620262 gwar5
gwar5's picture

There's always money changers in the streets and at the borders, they may charge a little more but the spot price can be good too. Too bad they can't eat their I-Pads.  Any news of gold confiscations by their dear leaders in the government?

 

 

Wed, 08/31/2011 - 16:08 | 1620294 Raymond Reason
Raymond Reason's picture

All of your meat now are belong to us. 

Wed, 08/31/2011 - 16:24 | 1620337 bbq on whitehou...
bbq on whitehouse lawn's picture

The Irish famine. The Irish farmers could sell their produce to England at a higher profit then locally. It resuted in over a million starving to death.

English absent renters insured that rents were high enough to see to no other result.

My heart cry's out for those in Belarus. May their "leaders" burn.

Hunger doesn't hurt so much as scares you. You  start to wonder when your heart will fail. When you will stop breathing, when you will just not wake up.

Hunger is best taken with "white fang" - Jack london; One chapter a day for each day you don't eat.

You will not die, but you will learn what hunger is by the end of that paper back.

We are human. Know that and believe.

I would like to hear from any to take up the challange. Or at least makes it to the second week.

Jack London. May the angles bless his soul.

Wed, 08/31/2011 - 17:47 | 1620708 hedgeless_horseman
hedgeless_horseman's picture

On about day three you start to get to know The Devil and begin to understand temptation.  Fasting is a great experience, as is reading this short publication on the topic.

http://www.quickfasting.com/ftp/quikfast.pdf

Wed, 08/31/2011 - 16:21 | 1620355 bankruptcylawyer
bankruptcylawyer's picture

i wonder when you start seeing a black market for swiss francs in the u.s. 

Wed, 08/31/2011 - 16:28 | 1620392 bbq on whitehou...
bbq on whitehouse lawn's picture

When you start seeing a market for Mexican and Canadian currency.

Us is open as far as Rap stars and ball players go. If you see and ball players move to other currencies in large numbers expect retail to follow. If only for show.

Nascar moveing to  some euro coin would make the fans think twice.

Or once as the case may be.

Wed, 08/31/2011 - 16:26 | 1620379 Bread Bullets B...
Bread Bullets Bullion's picture

Did the Russians debase the currency in Belarus? Is this their trial run on various economies? They seem to be in the markets quite early wrecking more economic hardships on the Belarusian people. Communism, for whatever you think about it, is a long term econmic vision shared by a select few who can make big decisions without any friction or political fallout. I mean if our leaders make a comment that grabs the media's attention, Rasmussen or Gallop runs a poll and gives the politician and his/her handlers instant feedback. Even if their original thought would have benefited the American people, they will quickly discard the idea if they think it will cost them politically. Impossible system with modern tech....

Wed, 08/31/2011 - 16:33 | 1620416 PulauHantu29
PulauHantu29's picture

Canadians are already swarming across the border grabbing "cheap American goodies" as the USD sinks further down the drain.

Hard Ass'ets are the way to go to preserve wealth.

Wed, 08/31/2011 - 16:37 | 1620435 Jack Kreuz
Jack Kreuz's picture

Not sellers, buyers scramble to convert their currency into products before it is devalued even more.

Wed, 08/31/2011 - 18:13 | 1620474 Fiat Money
Fiat Money's picture

GET A GRIP,  Tyler!  - when the GODDAMN-SACHS APPARTCHIKS  steal, swipe, SWINDLE the levers of  state power, it is NOT  "KEYNSIAN Economics" - it is pure, radical Right-Wing  "OF, BY, and FOR the BANKERS"  (hyper-wealthy robber-baron overlords)  e-con-omics - aka FEUDALISM.

   Keynes was about  USING government credit to CREATE JOBS for significant portions of the working-stiff population -   he RESIGNED IN PROTEST over the VERSAILLES TREATY, which HE PREDICTED would be so harsh, as to  foment ANOTHER  world war - he said that in 1919!!        The GS/jpm (= Fed, = r's) banksters are, as you may have noticed, about USING GOVERNMENT DEBT to GIVE THEMSELVES money,  as they do a RERUN of the British Anglo/money-power elites  IRISH HOLOCAUST,  "DISPOSING" of all those unwanted "socially inferiors" mouths... www.IrishHolocaust.org

     For you to call Summers, Geithner, Bernanke, schapiro, gensler, bernstein, klein and all the other RUBINITE HACKS running  Idiot Obama's  "e-con-omic policy" KEYNSIANS" is GROSS IGNORANCE.... or  neo-con propaganda lies.

    "Obama Picks Larry Summers’ Favorite Tennis Partner As His New Economic Chiefhttp://exiledonline.com/obama-picks-larry-summers-favorite-tennis-partner-as-his-new-economic-chief/   and -

http://exiledonline.com/larry-summers-a-suicidal-choice/  and -

 Michael Hudson: Obama’s Republican [Style] Class War Presidency (must-listen) 

http://dandelionsalad.wordpress.com/2010/02/09/michael-hudson-obamas-republican-class-war-presidency/

Wed, 08/31/2011 - 18:02 | 1620770 max2205
max2205's picture

Wow

Wed, 08/31/2011 - 19:06 | 1620964 Random_Robert
Random_Robert's picture

Hyper-transitory, bitchez....

Let me know when Gold is 500 Trillion Belarussian rubles per ounce... I might go over there and open a Brothel.

Wed, 08/31/2011 - 19:33 | 1621021 Buck Johnson
Buck Johnson's picture

That Hyperinflation will take hold well before next year.  In fact I see it happening in a month.

Thu, 09/01/2011 - 02:27 | 1621896 seoerlin
seoerlin's picture

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shacai's picture

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shacai's picture

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