Saturday, February 5, 2011

The Commodity Bubble and Rebellion in Egypt

By now it is not news, but there is no fault in looking at another reasoned explanation about how the Federal Reserve’s money printing (aka QE 2) has fueled an ongoing commodity bubble that has driven food prices so high that people in less developed countries can barely afford to eat.

As the Spengler column and many others have pointed out, the rise in food prices has directly influenced the rebellions that are taking place in Egypt and across the Middle East.

While Chairman Bernanke glows with pride at his ability to create enough inflation to defeat the dark forces of deflation while juicing the stock market, people around the world are going hungry.

In a recent appearance on the Dylan Ratigan Show, famed money manager Bill Fleckenstein offered an analysis of the situation.

Link here.

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2 comments:

  1. RetrieverFebruary 5, 2011 at 6:12 AM

    Look to the speculators...The commodity traders, hedge funds, etc. were major factors in the food crisis of 2007-8 (and tried to blame weather) and the gas crisis of 2008 (blaming OPEC)

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  2. AnonymousFebruary 5, 2011 at 3:13 PM

    TO: All
    RE: Heh

    While Chairman Bernanke glows with pride at his ability to create enough inflation to defeat the dark forces of deflation while juicing the stock market, people around the world are going hungry. -- Stuart Schneidermna

    Every nation is just three meals away from a revolution.

    Regards,

    Chuck(le)
    [You can not talk philosophy to a man with bodily hunger in his eyes.]]

    ReplyDelete