Although food and fuel inflation is rampant worldwide already, we are only seeing the very beginning. Massive oil price rises are likely to continue as a result of the geopolitical situation as well as peak-oil. The Middle East is a time bomb waiting to go off. Israel is in an extremely precarious position and the involvement or non-involvement of the US in this conflict would both have dire consequences for Israel and peace in the world. Food prices will continue to rise dramatically. Major parts of the world are living below the poverty line today and this will increase exponentially.
The lethal concoction of rising food and fuel prices is already affecting the Western world. The Continuous Commodity Index – CCI, (60% food, 17% energy and 23% metals) has almost doubled since the low in early 2009 and has gone up 42% in the last 12 months. The almost vertical rise of the CCI is one of the best indicators of hyperinflation being imminent. A catastrophe of astronomical proportions is looming. This will hit the world at a time when there is no capacity whatsoever to take any real measures that could alleviate the problems.
(snip)
Never before in history has the world run out of real money as well as (affordable) food and fuel simultaneously. But his is exactly what is happening now and it will get substantially worse in the next few months and years.
Financial misery, famine and high unemployment combined with governments that will not be in a position to give real help are a recipe for disaster that will lead to social unrest and revolutions not only in developing countries but also in the West. Hungry people are desperate people and desperate people do desperate deeds. We could see already in 2011 food shortages, and riots both in Europe and in the US.
Hyperinflation Watch
The following are INDISPUTALBLE FACTS:
The US dollar is down 82% against gold since 1999
The US dollar is down 49% against the Swiss Francs since 2001
The Dow Jones is down 81% against gold since 1999
The Continuous Commodity Index is up 100% since 2009
The above facts are clear evidence of an economy that has been totally mismanaged. But more importantly most of these trends are now starting to accelerate – a clear sign that hyperinflation is just around the corner.
From Egon von Greyerz of Matterhorn Asset Management
http://www.zerohedge.com/article/egon-von-greyerz-hyperinflationary-deluge-imminent-or-why-bernankes-motto-apr%C3%A8s-nous-le-d%C3%A9lu
Something's got to give here. Don't have a link handy, but I've read and posted about the fact new debt is no longer creating new money.. that right there demands collapse.
So many other things coming together, like how there's so much more paper gold and silver than the physical metal. And insane valuations, like the company that makes Farmville is really worth $7-10 billion??? That's Zynga's big hit, pixel corn on the web, and they're worth up to ten billion.
Meanwhile real food and commodity prices are skyrocketing around the world, even here in the US (as I've posted about before).
And.. peak oil decline is really just starting. Everything going on now is just prelude.
