by Bill Bonner
Wednesday, February 23, 2011 ▪
Well, what do you think of Ben Bernanke ... He fights for freedom! Look what he did in the Middle East!
Whenever we open a newspaper, another dictator seems to fall. Where does this lead us, we ask ourselves? What would the world without dictators? Without them, to whom the secret service would they give our money?
The last flight (but who does not abandon completely), is Muammar Gaddafi, Libya.
Wait ... Is it an enemy or friend? We do remember more. Was it not against us a few years ago? But recently we heard he had passed on our side. He helped the United States in its war against terrorism. And it sells oil.
Friend or foe, we do not know ... but whatever it is, it seems that coming to an end. The newspapers reported yesterday he had lost control of the second largest city. Its troops fired on demonstrators in the capital, where he locked himself in a few government buildings with guards loyal.
His son has vowed to fight. He announced that he will flow "rivers of blood" before it gives up.
The image of "rivers of blood" was used by Enoch Powell in Britain 50 years ago. It comes from the Virgil Aeneid, in which a predicted figure "wars, terrible wars, and the Tiber foaming with blood".
Powell was referring to the effects in Britain of immigrant from Africa and elsewhere. He thought to see happen racial wars and struggles for power. But
Gaddafi son uses language as a threat, not as prophecy.
Anyway, it has not helped Powell. Maybe Gaddafi is more likely. It is more likely to flee the country before the blood in question is his. This will bring to three the number of regime changes in recent weeks. This leads us to ask us a question: what's going on?
▪ The answer comes from our old friend Jim Davidson. For him, Ben Bernanke is behind the revolution. Behind the discontent People are neither the desire nor the freedom to call elections - but the food. And behind the rise in food prices is Bernanke.
The Arab world is a model of Malthusian disaster, says Davidson. The population has soared. Not food production. What makes the Arab countries the largest importers of cereals in the world. And when the price of food rises, the masses are rising.
Well, what do you think of that, dear reader? All those billions of dollars spent to install dictators - 70 billion, as was the cost of U.S. support for Hosni Mubarak Egypt alone - and here comes the Fed and reverses.
The Fed lowers the price of silver so that speculators can borrow in the rate of inflation. Then it prints trillions of additional dollars - just to decorate the world money.
Is it any wonder that food prices go up? Imagine you are a farmer ... or speculator. You can sell food, or store. You know it is precious. You know the world has more mouths to feed every day. You know that food production is limited. And you know that Ben Bernanke can print unlimited dollars. What are you doing?
Do you sell immediately? Or do you drag your feet ... and keep your precious grains while prices are reaching new heights?
Davidson says, "while Mr. Bernanke modestly disclaims any responsibility for the destabilization of much of the world, careful analysis confirms that he has played the role of informer. The program 'QE2' consisting of counterfeit thousands of billions of dollars from nothing helped ignite a runaway bull market in commodities and food - a up 28% over the last six months. The fact that the U.S. dollar has been so far the world's reserve currency means that almost all commodity prices are denominated in dollars. They are simple math: When the dollar falls, commodity prices tend to climb.
Today, Libya. ... Tomorrow Yemen? Or Saudi Arabia.
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