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Have Bernanke And Ethanol Sunk Egypt? The People Cannot Afford To Buy Bread
IDB Editorials ^ | February 1, 2011 | LAWRENCE KUDLOW

Posted on 02/01/2011 5:03:46 PM PST by Kaslin

Decades of autocratic government and a lack of free elections are, of course, the main drivers of the political upheaval in Egypt. But did the sinking dollar and skyrocketing food prices trigger the massive unrest now occurring in Egypt — or the greater Arab world for that matter?

In addition to Egypt, the people have taken to the streets to varying degrees in Algeria, Jordan, Libya, Morocco and Yemen. Local food riots have even broken out in rural China and other Asian locales.

While the mainstream media focus on the political aspects of this turmoil, they are overlooking the impact of rising inflation, driven mainly by record food prices. For example, former Bush adviser Dan Senor notes that Egypt is the world's largest wheat importer. Yet because of skyrocketing prices, Egyptian inflation is now over 10%, while some experts estimate that Egyptian food inflation has risen to as much as 20%.

So I have to ask this tough question: Is Ben Bernanke's ultra-easy QE2 money pump-priming partially to blame?

Commodities are priced in dollars, and the Federal Reserve has been overproducing dollars for more than two years. Consequently, emerging markets throughout the world — and the food sector in particular — are suffering from rising inflation.

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


TOPICS: Business/Economy; Culture/Society; Editorial; Foreign Affairs
KEYWORDS: algeria; aswandam; bernanke; buyopecoilinstead; china; economy; egypt; ethanol; federalreserve; foodriots; idiocy; inflation; jordan; kudlow; larrykudlow; libya; lunacy; morocco; mtba; myass; ntsa; stupidity; thefed; theqe2; totalbs; whocares; yemen
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1 posted on 02/01/2011 5:03:49 PM PST by Kaslin
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To: Kaslin

let them eat cake.


2 posted on 02/01/2011 5:07:47 PM PST by Mercat ( I remained nestled in cognitive dissonance)
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To: Kaslin

Frankly, this may be a little harsh, but I couldn’t care less about Egypt... or All of Africa or the Middle East, for that matter.

Decades of economic assistance have done nothing for us, and we are hated by the very people we are trying to help. Eff ‘em. They can starve or kill each other, for all I care.


3 posted on 02/01/2011 5:14:14 PM PST by clee1 (We use 43 muscles to frown, 17 to smile, and 2 to pull a trigger. I'm lazy and I'm tired of smiling.)
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To: Kaslin
Obama and his Regime have RUINED EVERYTHING THEY HAVE TOUCHED!!!!

I hope all of the Jewish liberals are really proud for voting for Obama and all the anti-Israel Democrats that have now SUNK and DESTROYED Israel!!

As for the 99% Blacks that voted for this puke, well one anti-Semite knows another.

4 posted on 02/01/2011 5:14:42 PM PST by Ann Archy (!!!!!)
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To: Kaslin

A bit of a reach there. Not a lot of corn goes to the ME.


5 posted on 02/01/2011 5:16:16 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Kaslin
Larry is dead on here. Ethanol is so destructive that even the leftists like Gore are running away from it. It is only a matter of time we will have massive food spikes here because of this stupid process.


6 posted on 02/01/2011 5:16:19 PM PST by Lazlo in PA (Now living in a newly minted Red State.)
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To: Ann Archy

.


7 posted on 02/01/2011 5:16:42 PM PST by Ann Archy (Abortion is the Human Sacrifice to the god of Convenience.)
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To: Toddsterpatriot; Mase; expat_panama
What does Kudlow know? He's a globalist®.
8 posted on 02/01/2011 5:18:19 PM PST by 1rudeboy
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To: Kaslin

Exactly. Our gov’t has been thinking to inflate their way out of debt until our economy “catches up”. The reality that their idiocy is going to cause third-world hunger and therefore wars... all seems academic to the administration, because so many of them are so... academic. I’ll bet that some of them though were not at all surprised, IYKWIM.


9 posted on 02/01/2011 5:19:03 PM PST by PieterCasparzen (Huguenot)
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To: redgolum
In most of the world human beings don't eat corn. Instead they purchase meat raised in America on a corn diet.

Americans, though, eat corn. We like it as cakes, patties, crakers, breads, fillers, thickeners, ........ etc.

Many Americans can't imagine that other people don't eat corn.

10 posted on 02/01/2011 5:20:03 PM PST by muawiyah
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To: Kaslin

bump


11 posted on 02/01/2011 5:20:09 PM PST by WashingtonSource
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To: Lazlo in PA

this cartoon may not have been approved by Archer Daniels Midland or Mobil Oil.... but it may be close to the right answer....


12 posted on 02/01/2011 5:22:09 PM PST by pointsal
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To: Kaslin

All commodities have risen astronomically in the past few years, but the state media reports none of it. Business channels show the numbers, but it’s all just blah, blah, blah, they don’t connect any political dots. So basically as this has been going on the most that the bulk of Americans have noticed has been higher prices at the supermarket.


13 posted on 02/01/2011 5:22:32 PM PST by PieterCasparzen (Huguenot)
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To: clee1

“Frankly, this may be a little harsh, but I couldn’t care less about Egypt... or All of Africa or the Middle East, for that matter.

Decades of economic assistance have done nothing for us, and we are hated by the very people we are trying to help. Eff ‘em. They can starve or kill each other, for all I care.”

I hear yah. But the fact of the pumping of our money supply is causing inflation for the rest of the world. What is bad about that is that someday, when there is a revulsion of the dollar, all those overseas dollars will ALL come back to the good ol’ USA, and cause at least massive inflation or a hyperinflation currency crisis. It could destroy the dollar. Can you say, New World Order, with NEW currency???

And all of those shit holes where our dollars held up dictators will blame US for their problems. Stinks, doesn’t it?


14 posted on 02/01/2011 5:26:59 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: Kaslin
Have what?

Wheat?

I can't eat that stuff. Certainly plenty of it leftover for someone else.

15 posted on 02/01/2011 5:28:09 PM PST by muawiyah
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To: Kaslin

I’m old enough to remember saying, “some day, bread will cost a dollar a loaf and gasoline will hit $.50 per gallon, cigarettes $.50 per pack”


16 posted on 02/01/2011 5:30:03 PM PST by Graybeard58 (Don't tell Obama what comes after a trillion)
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To: redgolum

I have to read the article again, but I don’t think it said anywhere that we are exporting corn to Egypt


17 posted on 02/01/2011 5:32:39 PM PST by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: BOBTHENAILER; Ernest_at_the_Beach; fish hawk; tubebender; Liz; editor-surveyor; SierraWasp; ...
The pushers and financiers of Mythanol appear to be racist mass murdering serial green eco killers of the poor across the globe.

Decades ago they banned DDT and each day thousands of innocent people of color across the globe die from malaria.

Now they are starving the innocents of color around the globe to death with their mythanol policies.

"To be fair, not all of the food inflation can be blamed on the Fed. A good part of this problem can also be placed at the doorstep of bipartisan U.S. policies to subsidize ethanol."

"According to the Wall Street Journal, in 2001, only 7% of U.S. corn went to ethanol. By 2010, the ethanol share was 39%. So instead of growing wheat, our farmers are growing corn in order to cash in on ethanol subsidies."

18 posted on 02/01/2011 5:37:33 PM PST by Grampa Dave (ILLEGAL IMMIGRATION IS DESTROYING AMERICA-LOOK AT WHAT IT DID TO THE WHITE HOUSE!)
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To: Kaslin

Hrmmmmm, can somebody explain the corn ~ wheat link? Or are they talking ‘bout the cornbread shortage?


19 posted on 02/01/2011 5:39:05 PM PST by gilor (Pull the wool over your own eyes!)
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To: Kaslin

Good Question.


20 posted on 02/01/2011 5:40:03 PM PST by CPT Clay (Pick up your weapon and follow me.)
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To: muawiyah

We don’t send alot of meat to Eygpt. We don’t have that many plants that can.


21 posted on 02/01/2011 5:49:13 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum

You’ve gotta read the whole piece. They eat wheat over there. Lots of American farmers (from 10% a decade ago, to almost 40% now) have gone from planting wheat to planting corn....for the subsidies.

meh


22 posted on 02/01/2011 5:54:11 PM PST by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: clee1
Decades of economic assistance have done nothing for us, and we are hated by the very people we are trying to help.

Pretty much how welfare works - you feed the poor thinking you're doing the right thing, but instead, you're merely feeding your enemy and allowing them to strengthen.

23 posted on 02/01/2011 5:55:06 PM PST by meyer (We will not sit down and shut up.)
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To: Grampa Dave

I believe that the ethanol scam was a deliberate attack on 3rd world populations, in keeping with Agenda 21.


24 posted on 02/01/2011 5:57:48 PM PST by editor-surveyor (NOBAMA - 2012)
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To: Daisyjane69

They didn’t stop planting wheat to get corn subsides. They stopped because corn is a much higher yield crop that is more tolerant than wheat.

Trust me. My Grandpa hated government money, and had stopped growing wheat long before I was born. The reason? He got tired of losing one in five crops.


25 posted on 02/01/2011 6:08:31 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: PieterCasparzen

If TPTB had to admit ‘inflation’ was present, it would mean unpleasant measures would be required and even more unpleasant consequences for us.
It’s going to happen. The only question is when.
I’ve adopted the attitude that the less I have, the less I have to lose. I’ve been poor before.


26 posted on 02/01/2011 6:15:51 PM PST by griswold3 (We defend conservatism by our very way of life.)
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To: redgolum

Stem rust (Ug99) is a major factor in the ME wheat production difficulties.


27 posted on 02/01/2011 6:19:05 PM PST by griswold3 (We defend conservatism by our very way of life.)
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To: Daisyjane69

Why is it always ‘American’ farmers’ greed (wanting subsidies) that’s to blame? Doesn’t the Middle East have the Nile, the Mesopotamia bread-basket, and all that idle agricultural real estate in Africa that European farmers where run off of? Is it America’s fault those yahoos can’t stop stoning each other long enough to grow a freaking crop or two?


28 posted on 02/01/2011 6:19:11 PM PST by blueplum
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To: redgolum
As long as we can keep Albania stocked up with frozen chicken they can send goat and sheep kids and lambs to Egypt and elsewhere if there are Moslems who have cash.

We do not need to directly export corn, or meat, to Egypt to make a deal ~ and the ME is where they invented that sort of thing.

It's one of their art forms.

29 posted on 02/01/2011 6:21:49 PM PST by muawiyah
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To: Ann Archy

Someone should tell that to kissinger

http://www.bloomberg.com/news/2011-02-01/kissinger-says-u-s-should-stay-out-of-egypt-dispute-video.html


30 posted on 02/01/2011 6:24:10 PM PST by FromLori (FromLori">)
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To: Graybeard58
I remember when a cigarette vending machine charged 30 cents a pack. As a high school senior, I enjoyed filling my Honda CB175 with premium gas at 25.9 cents per gallon. That was a price "war" between adjacent stations. Premium usually sold for 33 cents and was jacked up to 38 cents on holiday weekends.
31 posted on 02/01/2011 6:27:34 PM PST by Myrddin
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To: redgolum

If the federal government was not paying farmers to grow corn a lot of the corn land would be producing two crops of wheat each year. Since it cost less to grow.


32 posted on 02/01/2011 6:34:25 PM PST by org.whodat
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To: redgolum

If the federal government was not paying farmers to grow corn a lot of the corn land would be producing two crops of wheat each year. Since it cost less to grow.


33 posted on 02/01/2011 6:34:51 PM PST by org.whodat
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To: griswold3; PieterCasparzen

“If TPTB had to admit ‘inflation’ was present, it would mean unpleasant measures would be required and even more unpleasant consequences for us.

It’s going to happen. The only question is when.”

It has already begun here they just don’t report on food/gas inflation anymore but you see it for yourself at the check out and in the reduced packaging.


34 posted on 02/01/2011 6:40:01 PM PST by FromLori (FromLori">)
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To: Mercat

Let them eat cake or their oil. We should cut off all aid to muslim countries. You can’t buy people into liking you and I think after the billions we’ve given to these ingrates proves that point. Let their idol allah take care of them.


35 posted on 02/01/2011 6:40:45 PM PST by Bluebeard16
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To: FromLori

By the time TPTB admits there is inflation, it will be too late.


36 posted on 02/01/2011 6:43:02 PM PST by griswold3 (We defend conservatism by our very way of life.)
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To: org.whodat

Are you a farmer?

Again, wheat doesn’t yield as much, and you have failed crops much more often than corn.


37 posted on 02/01/2011 7:03:09 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: muawiyah

And here on FR we often get the popcorn out:)


38 posted on 02/01/2011 7:10:52 PM PST by Cold Heart
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To: redgolum

My daddy was a farmer and yes I live on a farm. Now it is not about yield it is about rerun on investment. If you take out the welfare payments for growing corn, the farmer needs to grow what he can put in the ground the cheapest that will give him the most return. Corn is produce by mostly commercial farmers that lease as much land as possible for the million dollars of equipment it takes to produce thousands of acres of corn. So where is your farm?


39 posted on 02/01/2011 7:11:40 PM PST by org.whodat
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To: org.whodat

Eastern Nebraska, north of Omaha a ways.

Though I think Dad is getting out of it this year, and I am not in a situation where I could go back. Not enough land or money to make a go of it.


40 posted on 02/01/2011 7:14:02 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Grampa Dave; redgolum; SunkenCiv; muawiyah; Kaslin
A bit of a reach there. Not a lot of corn goes to the ME.

But a lot of wheat stopped going there due to corn ethanol subsidies.

"To be fair, not all of the food inflation can be blamed on the Fed. A good part of this problem can also be placed at the doorstep of bipartisan U.S. policies to subsidize ethanol."

"According to the Wall Street Journal, in 2001, only 7% of U.S. corn went to ethanol. By 2010, the ethanol share was 39%. So instead of growing wheat, our farmers are growing corn in order to cash in on ethanol subsidies."

Bingo! The article has great arguments against Keynesian economics, the Fed and subsidies. I'll be happy if we don't get another war.

41 posted on 02/01/2011 7:38:57 PM PST by neverdem (Xin loi minh oi)
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To: org.whodat
There are zones where you can double crop wheat with soybeans. There are other zones where you get far higher productivity by double cropping corn with soybeans.

Not all land in this country is best suited for wheat ~ at the same time much of the land best suited for corn is also devoted to roads, houses, and various public construction projects.

42 posted on 02/01/2011 7:48:16 PM PST by muawiyah
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To: Kaslin
I'm not trying to say that things aren't tough in Egypt, but relative to the size of Cairo (16 million), the size of these demonstrations are not impressive. Also note the means of communication: Internet and cell phones, which in Egypt are still upper-middle class appliances. And note all the signs in English. When they say "Mubarek, get out, game over" in english, are they attempting to communicate to Mr. Mubarek? The more I look at this, the stronger Mubarek's position seems to be.
43 posted on 02/01/2011 8:48:28 PM PST by cookcounty (Knives, Guns, Enemies and Axx-Kicks: The Gentle Political Speech of President Barrimore Soetero.)
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To: Lazlo in PA
Ear Of Corn
44 posted on 02/02/2011 12:34:49 AM PST by preacher (A government which robs from Peter to pay Paul will always have the support of Paul.)
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To: Kaslin
Sweet Justice!

Yes Ethanol has been part of the equation but consider this;

The cost of anything in this world to a significant degree is based on the fuel to produce it and the fuel to move it.

The very governments who are at risk over high food prices are the same ones who have been jacking up the price of oil for 30 years.

Since the 1st oil embargo in the 70's some folks have pushed for a tit-for-tat, oil-for-wheat system of exports to get back at those who produce oil and nothing else. Fact is that system has always been in place and now we are seeing the payback.

45 posted on 02/02/2011 2:17:08 AM PST by M.K. Borders (All I require of my government is the liberty my Grandfathers were born to.)
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To: redgolum

The article suggested that farmers were enticed by subsidies.

That said, as a gardener who has been thwarted by a crop or two in my time, I’m sure not going to argue with anyone’s Grandpa about choosing reliable crops.

:)


46 posted on 02/02/2011 2:37:23 AM PST by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: Kaslin

There are really three main drivers of rising food prices here, the two Kudlow discussed, and one other.

1) Helicopter Ben’s financial policies which have created commodity price inflation.

2) Ethanol subsidies and mandates. Burning food! Such a great idea! What could go wrong!?

And finally, not discussed by Kudlow, and quite important,

3) Huge shortages in the Russian wheat crop in 2010.

Egypt in a normal year imports a *lot* of Russian wheat.

Drought ruins Russia wheat, U.S. says no world crisis
Thu Aug 12, 2010
http://www.reuters.com/article/2010/08/12/us-russia-heat-idUSTRE6751T820100812

Russia Wheat Export Ban Pushes Prices Near 2-Year High
August 6, 2010 at 3:15 PM EDT
http://www.pbs.org/newshour/rundown/2010/08/russia-export-ban-pushes-wheat-prices-near-two-year-high.html


47 posted on 02/02/2011 4:08:51 AM PST by FreedomPoster (Islam delenda est)
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To: pointsal

ADM had a really nice bump yesterday. Worried about increase in food price? Hedge


48 posted on 02/02/2011 4:27:54 AM PST by bert (K.E. N.P. N.C. D.E. +12 .....( History is a process, not an event ))
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To: editor-surveyor

“I believe that the ethanol scam was a deliberate attack on 3rd world populations, in keeping with Agenda 21.”

Isn’t amazing, if we attend a Tea Party rally or say right on, we become racists in the MSM’s eyes.

Yet, the MSM/Serial Killing Greens and our Rats push abortion on the poor in this country and around the world, banned DDT which kills thousands of innocents each day, and now push Mythanol to the point that our wheat crops are down which forces the prices of wheat up and ends up starving poor around the world.

The real racists are our rats, the socialists around the world, the Green Serial Killers of the poor and those who finance their “kill the innocent poor” deadly agendas.


49 posted on 02/02/2011 7:44:56 AM PST by Grampa Dave (ILLEGAL IMMIGRATION IS DESTROYING AMERICA-LOOK AT WHAT IT DID TO THE WHITE HOUSE!)
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To: neverdem

There were some problems in Russia, and I forget where else (not the US) that led to wheat supplies (and barley, it says here) going shorter than expected in 2010. As always, it had zero, nothing, nada to do with corn for ethanol.

Ag prices are sensitive to petroleum prices, not the other way around.

Nice of the WSJ to shill for OPEC though. No surprise there. Conversions I looked up; 1 metric ton = 45.9296 bushels, One Hectare = 2.47 acres:
50 posted on 02/02/2011 4:09:39 PM PST by SunkenCiv (The 2nd Amendment follows right behind the 1st because some people are hard of hearing.)
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