nobodypanic wrote:on that note, i have to say i am rather surprised this thread isn't getting more play here.
Have to agree, this is the thread to be watching at the moment. Bernanke's "loose money" policies sure seem to be causing
a lot of unattended consequences. I guess that's what happens when you own the imperial currency;
Roubini Says Jump in Food, Energy Prices ‘Can Topple Regimes’By Tom Keene and Stuart Wallace - Jan 26, 2011 10:42 AM CT
A surge in food and energy costs is stoking inflation in emerging markets and causing riots that may topple governments, said Nouriel Roubini, the New York University economist who predicted the financial crisis.
Global food costs monitored by the United Nations jumped 25 percent last year, reaching a record in December, and crude oil traded in New York is at $86.38 a barrel, about 53 percent more than its average over the last decade. There have been protests in Algeria and Egypt, and Tunisia’s President Zine El Abidine Ben Ali fled the country on Jan. 14.
“In emerging markets, it’s leading to rising inflation, to reduction in disposable income, it’s leading to riots, demonstrations and political instability,” Roubini said in an interview in Davos, Switzerland, today with Tom Keene on Bloomberg Television’s “The Pulse.” “It’s really something that can topple regimes, as we have seen in the Middle East.”
Governments from Beijing to Belgrade are increasing imports, limiting exports or releasing supply from state stockpiles to curb food inflation. Countries probably spent at least $1 trillion on food imports last year, with the poorest paying as much as 20 percent more than in 2009, the UN says.
The Standard & Poor’s GSCI Agriculture Index of eight futures rose 44 percent last year, the biggest advance since 1974, data compiled by Bloomberg show. The gains were led by cotton, corn and wheat as flooding in Canada, China and Australia and drought in Russia and Europe ruined crops.
But, never fear, Heli-Ben intends to keep on printing, so more fireworks to come?
FOMC stays the courseBy Staff Reporter | January 26, 2011 2:27 PM EST
The Federal Open Market Committee (FOMC) kept its key interest rate unchanged at the record low range of 0 percent to 0.25 percent, as widely expected. The FOMC also remained committed to its $600-billion Treasury purchase program.
The vote was unanimous.
The policy committee specifically stated that underlying inflation is trending downward, despite the rise commodity prices. Noting that the U.S. economy is recovering, the pace of such recovery was not sufficient to meaningfully improve conditions in the labor market.
“Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit,” The FOMC statement read.