The first map is a disturbing illustration of food and inflation riots around the globe in 2011 (updated through Feb. 19) I came across on Google. The second map is actually an infographic from The Economist explaining the politics behind the military action against Libya.
Google Map Legend
Fist = Overthrown Governments
Flames = Actual food / inflation riots
Police = Protests / other riots
$ = Price increase announcements / Price Controls / Stock market issues
! = Strike in inflation / food related industries
Phone = Internet/ Twitter /shutdown
Most of the inflation riots and protests are concentrated in the MENA (Middle East and North Africa) region, but as you can see on the Google map, they are starting to migrate into Europe, as well as China and India.
In the U.S., anemic growth, an ongoing housing depression, high unemployment and two rounds of quantitative easing (QE) probably have laid a pretty solid foundation for a similar riot map if Chairman Bernanke decides to grace us with QE3. I guess we shall find out when he delivers his speech at Jackson Hole on Friday morning, Aug. 26.
Adding to the food inflation riot is the international military action against Libya. It looks like Muammar Qaddafi's 42-year rule of Libya has finally come to an end. As the rebel put up a $1.7 million bounty on Gaddafi, the mystery of the day is the whereabouts of Gadaffi who's last known to be still in Tripoli.
Regardless, it might take some time to restore Libya to the pre-NATO state, which undoubtedly would give oil speculators plenty of excuse to drive up oil prices touting the Sweet Libyan Crude shortage myth.
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August 26, 2011
4 comments:
Popular to blame QE2 for food inflation and indeed QE2 was meant to have and inflationary influence but let's at least be a little fair. Almost the entire Russian wheat crop was lost last year with exports embargoed and thus all the normal users of Russian sourced wheat had to turn and scramble to replace those purchases elsewhere. Most of that took place before QE2 was even in place. Global food supplies dropped without any input from the Fed. Bernanke is powerful but he doesn't influence the weather.
Yes, Mr. Bernanke could not be blamed for what Mother Nature did, but the point is that QEs so far has not stimulated the economy has they were intended (we have written several articles discussing this), and only exacerbate the inflationary pressure. When income/wage fails to keep pace with inflation by a significant scale, that's when riots and unrest start.
You missed a cell phone stoppage on the Bay Area Rapid Transit system (BART) in the San Francisco Bay Area about two weeks ago. The shutdown was to prevent a group that was protesting the BART police shooting of a person that threatened them on a station platform to coordinate their activities via social networks and text messaging.
scary stuff, thanks for sharing
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