Feed: Egypt 2011: Preview of America in 2015 - AggScore: 13.0

Egypt 2011: Preview of America in 2015

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img classalignright srchttpthaiintelligentnews.files.wordpress.com201012r12813083785.jpg alt width300 Take a good look at whats happening in Egypt during February, 2011. Whats happening there may happen in the U.S. within four short years.Thats the grim forecast made by the a relnofollow hrefhttpinflation.usabout.html targetblankNational Inflation Associationa NIA in the frightening advisory recently released by the normally staid organization. The NIA is warning that the Federal Reserve policies have primed a ticking inflationary time bomb that could explode into a misery index unseen even during the Jimmy Carter years.If such a scenario unfoldsand they contend the U.S. economy is rushing towards that dire destination like a runaway freight trainthen in only a handful of years America will be erupting in chaos worse than whats transpiring in Cairo.The unrest that has broken out in the Middle East has galvanized the attention of the world, yet similar unrest broke out in the UK during the latter months of 2010 and in East Africa too. Those riots and demonstrations were mostly ignored by the U.S. media.What is driving the breakouts of demonstrations and civil unrest is the price of food. The commodity prices have soared as much as 30 to 50 percent during the last year for such staples as wheat, corn, rye, soybeans and sorghum.Overall the third world has been much more greatly impacted by the jump in prices than the Western nations. Some countries populations, like Yemen and Egypt, spend as much as half their annual income on food. The food they do purchase usually is enough for two modest meals a day. With prices catapulting into the stratosphere, many families have been forced to fall back on little more than one and a half meals a day.In other words, they are barely hanging on and tipping into the chasm of starvation.How this all came about can be directly traced back to the Federal Reserves monetary policy during the last 18 months. The socalled Qualitative Easing 1 QE1 and subsequent QE2 dumped many hundreds of billions into the U.S. and world economy. The money is funnymoney. Nothing backs it. In essence, the Fed just snapped its fingers and declared the dollars exist.More than one trillion dollars created out of thin air and then channeled into money center banks and capital markets has both a shortterm and longterm inflationary impact.The shortterm impact is immediately reflected in commodity prices grains, oils, meats and precious metals. All have seen huge upswings.As the Fed struggles to kickstart the American economy the unintended consequence is slow starvation for many of the poorer, nonindustrialized countries. The Middle East may be just the beginning. Food riots followed by demonstrations and civil unrest could spread across most of Africa, Asia, and Central and South America. Other Middle Eastern countries could be also affectedincluding Pakistan. And that countrys sitting on up to 100 nuclear missiles.Those are the shortterm consequences. The longer term impact could spill over into Eastern and Western Europe and jump the Atlantic to North America.Mexico has already had their tortilla food riots during 2009 and 2010. The demonstrations were primarily driven sharp spikes in corn prices due to the U.S. energy policy of using corn to create ethanol. That caused a shortage of corn on the world markets and the Mexican staple is corn.The NIA has assessed all these factors and sees the world having entered an extended period of inflation panics.One thing NIA is almost 100 sure of is that come year 2015, middleclass Americans will be spending at least 30 percent to 40 percent of their income on food, similar to Egyptians today, states the organization in its recent news release. Because of this, the NIA is strongly urging Americans to prepare for hyperinflation to avoid being caught up in future panic buying.The Feds policy is unchanging. Recently, private banking consortium even went so far as to float the idea of a QE3. The more the money supply is diluted, the greater the likelihood that hyperinflation will explode onto the U.S. economy with devastating results.At least in Egypt, their currency still has purchasing power and their citizens are trying to implement a regime change before it is too late. By 2015 in America, it will already be too late and the civil unrest here has the potential to be many times worse, the NIA advisory warns.As the dollar continues to weaken and inflationary pressures mount, more commodities will become scarce. Cocoa and sugar have already felt huge impacts and to a lesser degree, wheat, which fueled the uprising in Yemen, Egypt and to a smaller degree the Kingdom of Jordan.Large international hedgers have moved in and gigantic food processing companies are attempting to hold the line on the upsurge in prices. But Washington seems to have no intention of changing its policies andaccording to many savvy tradersmay even be oblivious to the fallout its policies are generating.