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Surging inflation will stoke riots and conflict between nations, says report[Merrill Lynch]
The Guardian ^ | 23 May 2008 | Andrew Clark

Posted on 05/24/2008 10:47:40 AM PDT by BGHater

· Merrill says gap between rich and poor will worsen · Governments must curb rising prices, insists bank

Riots, protests and political unrest could multiply in the developing world as soaring inflation widens the gap between the "haves" and the "have nots", an investment bank predicted yesterday.

Economists at Merrill Lynch view inflation as an "accident waiting to happen". As prices for food and commodities surge, the bank expects global inflation to rise from 3.5% to 4.9% this year. In emerging markets, the average rate is to be 7.3%.

The cost of food and fuel has already been cited as a factor leading to violence in Haiti, protests by Argentinian farmers and riots in sub-Saharan Africa, including attacks on immigrants in South African townships.

Merrill's chief international economist, Alex Patelis, said this could be the tip of the iceberg, warning of more trouble "between nations and within nations" as people struggle to pay for everyday goods. "Inflation has distributional effects. If everyone's income moved by the same rate, you wouldn't care - but it doesn't," said Patelis. "You have pensioners on fixed pensions. Some people produce rice that triples in price, while others consume it."

A report by Merrill urges governments to crack down on inflation, describing the phenomenon as the primary driver of macroeconomic trends. The problem has emerged from poor food harvests, sluggish supplies of energy and soaring demand in rapidly industrialising countries such as China, where wage inflation has reached 18%.

Unless policymakers take action to dampen prices and wages, Merrill says sudden shortages could become more frequent. The bank cited power cuts in South Africa and a run on rice in Californian supermarkets as recent examples.

(Excerpt) Read more at guardian.co.uk ...


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: conflict; economy; inflation; riots

1 posted on 05/24/2008 10:47:40 AM PDT by BGHater
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To: BGHater

Economic warfare is going to take on a whole new meaning in the 21st century.


2 posted on 05/24/2008 10:49:53 AM PDT by OB1kNOb ("We like Mr. Obama and we hope he will win the election." - Ahmed Yousef, Hamas PM advisor)
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To: OB1kNOb

I hope I live long enough to see the foreign debt get called in and the entitlement class trying to cash worthless monthly checks.

By that time pensioners will screaming too.


3 posted on 05/24/2008 10:52:07 AM PDT by Rebelbase (McCain: The Third Bush Term ?)
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To: BGHater
Has anyone actually seen the report or are we just suppose to believe the words of prove liars at Leftist propaganda outlet “The Guardian” that the report exists? If so, does the report actually say any of this or is this just the wishful thinking of the Leftist clowns at “The Guardian” projecting their own political delusions onto the report?
4 posted on 05/24/2008 10:53:04 AM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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To: BGHater

“Riots, protests and political unrest could multiply in the developing world as soaring inflation widens the gap between the “haves” and the “have nots”, an investment bank predicted yesterday.”

Let me be the first to say it...Bush’s Fault™.

Time to elect Nobama...right?


5 posted on 05/24/2008 10:54:34 AM PDT by bigfootbob
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To: OB1kNOb

“Economic warfare is going to take on a whole new meaning in the 21st century.”

We will lose big unless we become energy independent ASAP.


6 posted on 05/24/2008 10:55:56 AM PDT by 353FMG (What marxism and fascism could not destroy, liberalism did.)
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To: BGHater

Drill for oil.


7 posted on 05/24/2008 10:57:01 AM PDT by oprahstheantichrist (Stop calling them "liberals," they're Bolsheviks!)
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To: BGHater

Why didn’t any of this happen under ‘Jimmuh Cahtah’ when interest rates were at 21%?


8 posted on 05/24/2008 11:01:40 AM PDT by lexusppd
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To: BGHater

I read a report that negative reports on the economy get more reporting in an election year, mainly by lefty reporters when a Democratic may be reporting for duty in November. I’m just reporting on the reporters reporting reports.


9 posted on 05/24/2008 11:02:12 AM PDT by TheWasteLand
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To: oprahstheantichrist

The next gloom/doom problem thest the left will try to indicate that only centralized /one world government can fix. Like the UN produces peace and the USSR was able to provide food to all except the Georgians of course.
The New & improved Globull warming excuse.


10 posted on 05/24/2008 11:03:31 AM PDT by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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To: BGHater

And where do the Saudi’s get most of their food? They want higher prices for oil? I wonder how much the price of their food will go up? Something is going on that we don’t know about.

One thing to remember, if we dump oil into the salt caves, where are other nations, like China dumping their oil and why?


11 posted on 05/24/2008 11:08:55 AM PDT by RC2
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To: BGHater

Duh, waht in the hell do they think the reason the Socialists have been doing the things that are causing the prices to get out of control for?

They need a revolution to take over.

Keep your powder dry folks.


12 posted on 05/24/2008 11:09:01 AM PDT by stockpirate (Typical bitter white person, not voting for McCain, he's socialist.)
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To: BGHater

“Oh no, oh no! We had better redistribute money to them before they hurt us...” /sarcasm


13 posted on 05/24/2008 11:10:37 AM PDT by AmericaUnited
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To: All

'Doomsday Dog' is never wrong! :)

14 posted on 05/24/2008 11:13:22 AM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: BGHater
Every single nation third world nation almost without exception, was prosperous and had enough food (IN MANY CASES ENOUGH TO EXPORT!!) when the EVIL British or other EVIL” colonialists had control over them. They all went starving when socialist/communist regimes took over.
15 posted on 05/24/2008 11:14:09 AM PDT by AmericaUnited
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To: BGHater
Ain't gona happen. As long as the sheeple have their TV to watch and their internet to play on they will be satisfied. We just had elections here and only 10% of the voting public showed up at the polls. They don't care.
16 posted on 05/24/2008 11:15:10 AM PDT by kempo (c)
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To: BGHater
Governments must curb rising prices, insists bank

Morons. The "Government" is the cause, not the solution. Of course this is the Guardian and who knows what was in the report.
17 posted on 05/24/2008 11:17:48 AM PDT by PA Engineer (Liberate America from the occupation media.)
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To: MNJohnnie
...does the report actually say any of this or is this just the wishful thinking of the Leftist clowns at “The Guardian”...

That was my first thought too, but whether "Merrill urges governments to crack down on inflation" or not, a more disturbing idea is the fact that there are so many idiot freepers on this thread that actually believe "Governments must curb rising prices" in order to reduce "the gap between the "haves" and the "have nots".

Anybody here know of some kind of spray that gets rid of socialists?

18 posted on 05/24/2008 11:20:00 AM PDT by expat_panama
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To: 353FMG
We will lose big unless we become energy independent ASAP.

Quite possible, but please excuse my cynical outlook of that happening even this time around. Having experienced the '70s oil embargo and gas rationing, our country had every reason then as now to make our nation and economy energy independent and for the following 30 years have failed miserably, in fact as far as the automobile industry is concerned, becoming even worse IMO, by the current glut of land yachts, SUV's, and power trucks currently flooding the highways.

We as a nation became collectively lazy and apathetic when the oil started flowing again and prices started dropping after the embargo, and quickly forgot the mess we were in during the crisis. With the mentality of self gratification and sense of entitlement this latest generation has grown to know, as fuel prices get higher and tempers get hotter this time around, it won't surprise me to see episodes of violence and chaos crop up in the not to distant future.

19 posted on 05/24/2008 11:21:16 AM PDT by OB1kNOb ("We like Mr. Obama and we hope he will win the election." - Ahmed Yousef, Hamas PM advisor)
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To: expat_panama

20 posted on 05/24/2008 11:22:29 AM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: lexusppd

Because during Carters time the global economy did not exist to the extent that it does today.


21 posted on 05/24/2008 11:47:41 AM PDT by peter the great
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To: kempo

Give it some time the truth is that this will not unfold exactly as the author has predicted but it will come to pass. Here in New Jersey the cost of living is so high people move to the Pennsylvania border and beyond and unless things change I see that trend reversing and when that happens you will start to see a little unrest.


22 posted on 05/24/2008 11:58:04 AM PDT by peter the great
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To: lexusppd

Because back then, we were more civil. One didnt hear the out and out hate spewed all over the place like you do now.


23 posted on 05/24/2008 12:03:30 PM PDT by crz
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To: Diana in Wisconsin

That ought to work. Thanks.


24 posted on 05/24/2008 12:04:28 PM PDT by expat_panama
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To: BGHater

Lighten up everyone, this is a common scare tactic used by the left to impose government control over everything. Didn’t you see the scream in there, the one that isn’t actually screamed but implied and implicitly stated in this quote “Merrill says gap between rich and poor will worsen · Governments must curb rising prices”. It is all about keeping the populace of the world scared so that left wing control over all countries can be implemented. First scare you, then pass laws that give them the control they want, with each scare more control is gained by the government. Global warming is part of the same tactic, so is environmentalism. Don’t buy into their BS.


25 posted on 05/24/2008 12:05:53 PM PDT by calex59
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To: oprahstheantichrist
Drill for oil in American controlled territories. Time to start weening America off of the Saudi oil teat.
26 posted on 05/24/2008 1:35:11 PM PDT by Ron H. (A lesser evil candidate is still an evil candidate even if it's a Republicrat!)
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To: BGHater
Image hosted by Photobucket.com

27 posted on 05/24/2008 3:19:09 PM PDT by Chode (American Hedonist ©® CTHULHU '08 - Nothing LESS!!!)
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To: BGHater

Good timing for the Supreme Court to uphold the 2nd Amendment ...


28 posted on 05/24/2008 7:06:47 PM PDT by 11th_VA (Klaatu Barada Nikto)
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