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.
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