Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Food Riots: Is Bernanke Partially to Blame?
CNBC ^ | January 28,2011 | Larry Kudlow

Posted on 01/30/2011 2:57:50 PM PST by Hojczyk

Edited on 01/30/2011 3:10:01 PM PST by Admin Moderator. [history]

As we know, massive popular unrest has broken out against autocratic governments in North Africa and the Arab world. Egypt is the biggest story. But to varying degrees, the people have taken to the streets in Algeria, Jordan, Libya, Morocco, and Yemen.


(Excerpt) Read more at cnbc.com ...


TOPICS: Foreign Affairs; Government; News/Current Events
KEYWORDS: bernanke; economy; egypt; ethanol; federalreserve; food; foodcrisis; foodinsecurity; foodprices; foodriots; foodshortage; foodshortages; idiocy; kudlow; larrykudlow; lunacy; mtba; ntsa; stupidity; thefed; theqe2

1 posted on 01/30/2011 2:57:53 PM PST by Hojczyk
[ Post Reply | Private Reply | View Replies]

To: Hojczyk
then U.S. monetary policy has to shoulder at least some of the blame.

That's right. Blame everything on the mean ol' US. It's Bush's fault! It's Palin's fault! It's the Tea Party's fault! It's the GOP's fault! It's the Ugly American's fault!

2 posted on 01/30/2011 3:01:13 PM PST by bgill (Kenyan Parliament - how could a man born in Kenya who is not even a native American become the POTUS)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hojczyk

Egypt used to be the bread basket of the Roman Empire. There is no reason why they should be importing food as they’re perfectly capable of feeding themselves. The reason they cannot is simple: socialism.

Zimbabwe used to be an exporter of food, as well. No more. Government is the cause of food shortages in the Third World, not an American bureaucrat named Bernanke!


3 posted on 01/30/2011 3:01:25 PM PST by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SatinDoll

Our govt has done it’s share with ethanol..and lack of petroleum production lifting world oil prices.
As the world goes more socialist food will become a real problem.


4 posted on 01/30/2011 3:07:31 PM PST by Oldexpat
[ Post Reply | Private Reply | To 3 | View Replies]

To: bgill
Actually, it IS the fault of huge US budget and trade deficits, Fed-induced low interest rates, massive money creation to buy US debt, and the total abuse of the dollar as the world's reserve currency.

We have imported food price inflation to the world.

5 posted on 01/30/2011 3:11:33 PM PST by JustTheTruth (Sometimes the Truth hurts so much that the masses refuse to face or accept the obvious.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Hojczyk

Wait...If George Bush is to blame for Katrina...then certainly 0bama is to blame for food riots in Egypt.


6 posted on 01/30/2011 3:12:17 PM PST by Drango (NO-vember is payback for April 15th)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hojczyk
US - 41 million food stamp recipients - 99+ weeks unemployment benefits = ??

“Hungry bellies feed revolutions”...Stalin

7 posted on 01/30/2011 3:13:25 PM PST by Las Vegas Ron (The Tree of Liberty did not grow from an ACORN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bgill

Hate to bust your bubble, but we have sold over 1.5 million tonne’s of wheat to egypt in the last few months, wheat is higher in the good old united states because of the a/holes that want to pay farmers to grown fuel instead of food. Russia? cut them off last fall due to drought in Russia.


8 posted on 01/30/2011 3:13:57 PM PST by org.whodat
[ Post Reply | Private Reply | To 2 | View Replies]

To: Hojczyk

This is our future!!! Please call and write your congress person and tell them to redact ALL their food restrictions in this country. They’re garnering the land, putting unbelievable restrictions on farmers who find it too expensive - leave their farms which is then taken over by the government, we won’t even be able to grow our own food. Food and water is our lifeline and the ability to communicate with each other - the government is planning to take them. If this appears paranoid then so be it.


9 posted on 01/30/2011 3:14:19 PM PST by bronxville
[ Post Reply | Private Reply | To 1 | View Replies]

To: JustTheTruth

Exported.


10 posted on 01/30/2011 3:14:37 PM PST by JustTheTruth (Sometimes the Truth hurts so much that the masses refuse to face or accept the obvious.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: JustTheTruth

Trade deficits? I don’t think so.


11 posted on 01/30/2011 3:14:49 PM PST by 1rudeboy
[ Post Reply | Private Reply | To 5 | View Replies]

To: Oldexpat

It won’t take but a couple or three poor harvest years, with a resulting famine, to bring about political chaos. And when it comes I predict it will happen in Muslim dominated lands.

Why? Because Muslims are generally sub-standard farmers and most Muslims inhabit what can only be called marginally arable lands with Egypt, Pakistan, and Indonesia being the exceptions.


12 posted on 01/30/2011 3:14:58 PM PST by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Hojczyk

riots are nothing...we will have food wars in the near future...


13 posted on 01/30/2011 3:15:17 PM PST by surfer (To err is human, to really foul things up takes a Democrat, don't expect the GOP to have the answer!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hojczyk

No the rise in food costs is the unintended consequence of using ethanol added to our fuel. The farmers switched to corn rather than wheat. This caused the price of wheat to escalte.


14 posted on 01/30/2011 3:18:58 PM PST by Carley (IDEOLOGY TRUMPS FACTS IN THE LEFT'S QUEST FOR POWER)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hojczyk

The rise in food prices is not entirely The Benbernank’s fault, but his practice of printing $100 billion per month weakens the US dollar and axiomatically raises prices for everything.


15 posted on 01/30/2011 3:27:33 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: All

Let's Put This Baby To Bed!!
Less Than $400 To Go!!
Please Help End The FReepathon

16 posted on 01/30/2011 3:31:14 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
[ Post Reply | Private Reply | To 15 | View Replies]

To: SatinDoll
The whole population of Europe during the days of Roman was less than the current population of Egypt.
17 posted on 01/30/2011 3:31:28 PM PST by org.whodat
[ Post Reply | Private Reply | To 3 | View Replies]

To: org.whodat

Correct.

But today there are improved plant lines and methods of agriculture. The problem isn’t with the growing of food, it is the government getting in the way of that production.

(In the case of Egypt, it isn’t just food production that has been thwarted, but all types of businesses. Socialism kills the desire of the individual to work and succeed.)


18 posted on 01/30/2011 3:41:51 PM PST by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
[ Post Reply | Private Reply | To 17 | View Replies]

To: org.whodat

When we have riots, can we blame it on them for the high price of oil?


19 posted on 01/30/2011 3:48:17 PM PST by bgill (Kenyan Parliament - how could a man born in Kenya who is not even a native American become the POTUS)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Hojczyk

Isn’t it great that the Limp Duck congress extended the ethenol subsidies another 3 yrs.

Pray for America


20 posted on 01/30/2011 3:58:14 PM PST by bray (Support Palin to make heads explode on both sides?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hojczyk

He apparently has a nice beard and is therefore qualified.


21 posted on 01/30/2011 4:00:12 PM PST by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Carley

-——The farmers switched to corn rather than wheat———

Reference please


22 posted on 01/30/2011 4:05:24 PM PST by bert (K.E. N.P. N.C. D.E. +12 .....( History is a process, not an event ))
[ Post Reply | Private Reply | To 14 | View Replies]

To: DuncanWaring
his practice of printing $100 billion per month weakens the US dollar and axiomatically raises prices for everything.

Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

23 posted on 01/30/2011 4:31:00 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: bert

Check out the Farmland Forecast...........it’s easy to use google.com

try it, you’ll like it.

It is more profitable to grow corn.


24 posted on 01/30/2011 4:37:31 PM PST by Carley (IDEOLOGY TRUMPS FACTS IN THE LEFT'S QUEST FOR POWER)
[ Post Reply | Private Reply | To 22 | View Replies]

To: DuncanWaring; JustTheTruth; All

That’s true but it’s doing the same thing here perhaps we should all be in the streets :).

Bernanke is a liar he claimed he wouldn’t monetize our debt and he has. This all works out to be a plus for the obama administration he can continue to spend, along with soros and the International Crisis Group they have fomented enough unrest to install the man of their choice El Baradei into Egypt.

http://www.crisisgroup.org/en.aspx

El Baradei poses as a critic of the United States, note not because of meddling in the Middle East, but because they are not doing enough. In the media El Baradei berates the US for not intervening in what he calls “social disintegration, economic stagnation, and political repression” in Egypt all the while working with soros/obama/brezinski.

http://www.thedailybeast.com/blogs-and-stories/2011-01-26/mohamed-elbaradei-the-return-of-the-challenger/


25 posted on 01/30/2011 5:07:36 PM PST by FromLori (FromLori">)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Carley

The use of corn for ethanol will have even more consequence when oil prices increase. That will cause the cost of farm production to increase, which will drive up food prices. It will also drive up the cost of ethanol.

What is the elephant in the Egyptian room is the cost of energy. The cost of production and transport of food is rising because of rising oil prices. This is the cause of Egypt’s economic problem. And what bodes for Egypt will also be a danger for the United States.

As in the United States, interference by Big Government has caused Egypt’s economic troubles. What is of concern is what will replace Egypt’s dictatorship—another dictatorship? Whatever form of government, Egypt like nations around the world have the cost of energy to deal with. That problem will not be solved with Big Government that interferes with the creative ability of Capitalism to come up with answers.


26 posted on 01/30/2011 5:12:32 PM PST by jonrick46 (We're being water boarded with the sewage of Fabian Socialism.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: jonrick46

Another unintended consequence is that the ethanol is ruining automobiles and gasoline pumps.


27 posted on 01/30/2011 6:11:37 PM PST by Carley (IDEOLOGY TRUMPS FACTS IN THE LEFT'S QUEST FOR POWER)
[ Post Reply | Private Reply | To 26 | View Replies]

To: 1rudeboy
Yes, trade deficits do contribute in part. We export dollars in exchange for real goods. Massive amounts of dollars and t-bills. The world is starting to wake up to the consequences of currency inflation with US dollars flooding the world. True wealth is not increasing, but the quantity of currency is.

US debt and currency expansion feeds it. Fiat currency from other debt-laden nations adds to the problem. We get "stuff" in exchange for paper and promises. The music is going to stop.

28 posted on 01/30/2011 8:22:46 PM PST by JustTheTruth (Sometimes the Truth hurts so much that the masses refuse to face or accept the obvious.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Hojczyk

Egypt has a very long history of government subsidies of bread....For a time in the 80’s, people were buying bread at a penny a loaf and using it to feed livestock. Probably, worldwide inflation and Bernacke are not to blame, more likely that the Mubarek government reduced the subsidy, sending prices higher.


29 posted on 01/30/2011 8:26:36 PM PST by cookcounty (Knives, Guns, Enemies and Axx-Kicks: The Gentle Political Speech of President Barrimore Soetero.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bert
"-——The farmers switched to corn rather than wheat——— Reference please"

It's pretty well established that the ethanol cash cow has pushed farmers to plant much more corn than previously, leading to less acreage for other crops.

30 posted on 01/30/2011 8:29:51 PM PST by cookcounty (Knives, Guns, Enemies and Axx-Kicks: The Gentle Political Speech of President Barrimore Soetero.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Toddsterpatriot

Commodities are priced in dollars world-wide in international trade. So is oil. As the dollar continues to drop in value against non-devaluing assets (which excludes the Euro and Yen which are falling slightly slower), food and energy cost more everywhere. People are not recognizing - yet - what happens when the world’s reserve currency is abused and devalued by America. The real purposes of this action are to enable govt spending (to re-elect politicians) and to save banks. The ostensible purposes are to help the economy grow and to reduce unemployment. Keynesian lies, but clever.


31 posted on 01/30/2011 8:30:35 PM PST by JustTheTruth (Sometimes the Truth hurts so much that the masses refuse to face or accept the obvious.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: JustTheTruth
Commodities are priced in dollars world-wide in international trade. So is oil. As the dollar continues to drop in value against non-devaluing assets (which excludes the Euro and Yen which are falling slightly slower), food and energy cost more everywhere.

Let's say the dollar is worth 5 Egyptian Pounds. Now the dollar drops 20%, suddenly it's worth 4 Egyptian Pounds.

Prices rise 25%. How is the Egyptian consumer hurt when wheat goes from $8 to $10 a bushel?

32 posted on 01/30/2011 8:54:46 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 31 | View Replies]

To: Hojczyk

Prices right here have risen high. there is no end in sight.
The fed can not continue to just print money as they wish. The value drops and the prices on everything go up.
It is just simple economics.

Eventually we will have to dump the dollar and go with gold to get any stability.

It is gonna get ugly before we are done. It is just starting people. Buckle up .. it’s gonna be a wild ride.


33 posted on 01/31/2011 12:30:23 AM PST by Munz (All tyranny needs to gain a foothold is for people of good conscience to remain silent.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cookcounty; Carley

.....It’s pretty well established that the ethanol cash cow has pushed farmers to plant much more corn......

I’ll accept that with no problem. Fallow land in the corn region would be planted. It is the market at work.

The issue I had was planting corn rather than wheat.

My reasoning.....
Corn and wheat are grasses. Corn grows best in the tall grass regions...the corn belt. Wheat grows best in the short grass regions.... the wheat belt. Corn doesn’t grow well in the plains.

That is in regions where the most wheat is grown, farmers could not switch and obtain the same value per acre. That is why I asked.

In the east where both are grown, perhaps it would be more profitable to plant corn rather than wheat except..... it takes different harvest machines


34 posted on 01/31/2011 4:22:13 AM PST by bert (K.E. N.P. N.C. D.E. +12 .....( History is a process, not an event ))
[ Post Reply | Private Reply | To 30 | View Replies]

To: Toddsterpatriot
Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

I guess you've never heard of carry trade.

35 posted on 01/31/2011 4:27:26 AM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Toddsterpatriot
Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

The Egyptian Pound may or may not be formally linked to the US Dollar, but the exchange rate has been roughly 5.5 EGP per USD, plus-or-minus 5% for the last five years.

The exchange rate has been rising recently, meaning it takes more EGP to buy a USD, making it even more difficult to buy dollars to pay for things that are priced in dollars, whose price in dollars is also increasing.

36 posted on 01/31/2011 6:13:54 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: palmer
I guess you've never heard of carry trade.

I guess you can explain what that has to do with the price of wheat in Egypt.

37 posted on 01/31/2011 6:19:38 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 35 | View Replies]

To: DuncanWaring
The exchange rate has been rising recently, meaning it takes more EGP to buy a USD

So the blame for higher prices belongs to the Egyptian Pound, not the US Dollar.

38 posted on 01/31/2011 6:24:09 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: Toddsterpatriot

The exchange rate is still roughly what it was five years ago; it’s only reverting to the norm.


39 posted on 01/31/2011 6:27:11 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 38 | View Replies]

To: DuncanWaring

Yup.

40 posted on 01/31/2011 6:32:01 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 39 | View Replies]

To: Toddsterpatriot

Misdirected capital forces increases in resources and commodities which leads to food prices increases along with a cycle of speculation (demand increases due solely to anticipation of more demand). Then at some point it all unravels, the prices overshoot and then drop. At the same time the unwind kicks in and dollars quickly rise in demand which forces further price increases on particular commodities (e.g. wheat) with large U.S. sources. A slower effect of the carry trade and unwind is the unavailability of capital for ordinary uses such as increasing food production by investing in equipment or even borrowing for seasonal planting.


41 posted on 01/31/2011 6:34:04 AM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
[ Post Reply | Private Reply | To 37 | View Replies]

To: palmer
Misdirected capital forces increases in resources and commodities which leads to food prices increases along with a cycle of speculation

But that's not a carry trade.

A slower effect of the carry trade and unwind is the unavailability of capital for ordinary uses such as increasing food production by investing in equipment or even borrowing for seasonal planting.

So dollar carry trades mean no money is available to finance agricultural production?

You should probably find the real definition of carry trade and try again.

42 posted on 01/31/2011 6:45:56 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 41 | View Replies]

To: Toddsterpatriot

It is the result of carry trade. The money that flows overseas for higher rate returns is loaned out there for short term speculation. The carry trade itself is more narrowly defined as borrowing low, loaning high, by going overseas. But I am looking at the direct effects, not just the textbook definition.


43 posted on 01/31/2011 7:49:52 AM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
[ Post Reply | Private Reply | To 42 | View Replies]

To: Hojczyk

Didn’t the govt try to pass the food safety act recently?

That should help us.


44 posted on 01/31/2011 7:56:22 AM PST by Texas resident (Hunkered Down)
[ Post Reply | Private Reply | To 1 | View Replies]

To: palmer
The money that flows overseas for higher rate returns is loaned out there for short term speculation.

You could make the case that easy money leads to "excess speculation" or it leads to inflation fears that cause prices to rise. You'd have a harder time making the case that cheap money here flows over there to speculate in dollar denominated commodities. World wide capital is flowing into the US, not out of the US, net-net.

The carry trade itself is more narrowly defined as borrowing low, loaning high, by going overseas.

Or borrowing low, loaning high, staying here. More importantly, you're buying higher yield and wheat futures have no yield.

But I am looking at the direct effects, not just the textbook definition.

That's good, because your definition was wrong.

45 posted on 01/31/2011 9:44:14 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 43 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson