"The mind is a compact, multiply connected thought mass with internal connections of the most intimate kind. It grows continuously as new thought masses enter it, and this is the means by which it continues to develop."

Bernhard Riemann On Psychology and Metaphysics ca. 1860

Today's Elites


Saturday, January 22, 2011

How We Like Sheep Do Go Astray--

The Darker Side of Inflation… is Death

Phoenix Capital Research's picture




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.

Good Investing!

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 for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.

PPS. We ALSO publish a FREE Special Report on Inflation detailing three investments that have all already SOARED as a result of the Fed’s monetary policy.
You can access this Report at the link above.



While I agree with the gist of your writing, the attempt to sell survivalism rather than a economic solution allows any wary reader to wave away the reality you report as merely another case of a crank trying to scam some dough. Unless the speculative bucket shop gambling casino is shut down and we return to sovereign credit systems based upon productive investments in the physical economy, no amount hand wringing survivalism makes a bit of difference to the future well being of humanity. And after all, we all are going to kick the bucket sooner or later...What matters is what we leave behind us, don't you think?

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