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Qtec
02-02-2011, 08:02 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The Little-Known Story of How a Financial Crash that Began on Wall Street is Setting the Middle East on Fire
By Danny Schechter, AlterNet
Posted on January 31, 2011, Printed on February 2, 2011
http://www.alternet.org/story/149736/

This is an upstairs/downstairs story that takes us from the peak of a Western mountaintop for the wealthy to spreading mass despair in the valleys of the Third World poor.

It is about how the solutions for the world financial crisis that the Ceos and Big pols are massaging in a posh conference center in snowy Davos Switzerland have turned into a global economic catastrophe in the streets of Cairo, the current ground zero of a certain to spread wave of international unrest.

Yes, the tens of thousands in the streets demanding the ouster of the cruel Mubarek regime are there now pressing for their right to make a political choice but they are being driven by an economic disaster that has sent unemployment skyrocketing <u><span style='font-size: 11pt'>and food prices climbing.</span>

People are out in the streets not just to meet but by their need to eat.</u>

As Nouriel Roubini who was among the first to predict the financial crisis while others were pooh-poohing him as “Dr Doom” says don’t just look at the crowds in Cairo but what is motivating them now, after years of silence and repression.

<span style='font-size: 14pt'>He says that the dramatic rise in energy and food prices has become a major global threat and a leading factor that has gone largely unreported in the coverage of events in Egypt.</span>

"What has happened in Tunisia, is happening right now in Egypt, but also riots in Morocco, Algeria and Pakistan, are related not only to high unemployment rates and to income and wealth inequality, <u>but also to this very sharp rise in food and commodity prices," Roubini said.</u>

<span style="color: #990000">Prices in Egypt are up 17% because of a worldwide surge in commodity prices that has many factors but speculation on Wall Street and big banks is a key one.</span>

As IPS reported, “Wall Street investment firms and banks, along with their kin in London and Europe, were responsible for the technology dot-com bubble, the stock market bubble, and the recent U.S. and UK housing bubbles.They extracted enormous profits and their bonuses before the inevitable collapse of each."

<span style='font-size: 17pt'>Now they've turned to basic commodities. The result? At a time when there has been no significant change in the global food supply or in food demand, the average cost of buying food shot up 32 percent from June to December 2010, according to the U.N. Food and Agriculture Organisation (FAO). Nothing but price speculation can explain wheat prices jumping 70 percent from June to December last year when global wheat stocks were stable, experts say.
</span>
Here’s a key fact buried in a CNN Money report—the kind intended for investors, not the public at large: <u>“About 40% of Egypt's citizens live off less than $2 a day, so any price increase hurts.”</u> </div></div>

Q

Sev
02-02-2011, 08:11 AM
Have to disagree with one point.
Food prices began to spike once corn crops began to be used for ethanol production. This trend will continue as long as ethanol is produced using food staples.

Environmental and government interference initiated the trend to higher food prices. The commodities market has responded to it.

In the US expect it to be exacerbated due to the weakening dollar and the arrival of inflation.

Nations that do not have a readily available food supply often descend into chaos.

pooltchr
02-02-2011, 09:01 AM
I can see how many could consider the US responsible for so any problems throughout the world. For many years, the US has provided aid to many impoverished countries. We were a nation of great wealth, and we would freely share that wealth with those who didn't have as much. (redistribution of wealth)

But by doing that, we actually made many countries dependent on the US to provide so much for them. At some point, it had to come to an end. And when you create an addict, then see the supply cut off, the results can get ugly.

We are doing the same thing within our own country.

We don't do anyone any favors if we do not help people become independent, and to become self-sufficent.

Steve

LWW
02-02-2011, 02:30 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">Have to disagree with one point.
Food prices began to spike once corn crops began to be used for ethanol production. This trend will continue as long as ethanol is produced using food staples.
</div></div>

That is a huge part of the problem, no doubt.

A century from now, Al Gore's legacy is far more likely to as the fool who starved millions than the man who saved the planet.

Excellent post.

LWW

LWW
02-02-2011, 02:31 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pooltchr</div><div class="ubbcode-body">I can see how many could consider the US responsible for so any problems throughout the world.

Steve

</div></div>

I must agree with Q ... the US is to blame for this, and in ways beyond the Gore lunacy.

More to follow, otherwise ... excellent post.

LWW

LWW
02-02-2011, 02:38 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 17pt'>Now they've turned to basic commodities. The result? At a time when there has been no significant change in the global food supply or in food demand, the average cost of buying food shot up 32 percent from June to December 2010, according to the U.N. Food and Agriculture Organisation (FAO). Nothing but price speculation can explain wheat prices jumping 70 percent from June to December last year when global wheat stocks were stable, experts say.
</span></div></div>

Q </div></div>

What the author didn't have the stones to ask is ... <u><span style='font-size: 14pt'>who</span></u> is doing the speculating?

The regimes insane monetary policy ... called quantitative easing ... had bought $2,100,000,000,000.00 in a lame effort to prop up markets.

This has led to a stock bubble ... a commodities bubble ... and a precious metals bubble.

Q had no idea when he started this ... but he has blamed the regime and his beloved state meddling for the problems in Egypt.

In that back handedly accurate assessment ... he is largely correct.

LWW

cushioncrawler
02-02-2011, 03:06 PM
Here kum the muslims.
mac.

".......I do not know what the protesters are going to gain even if they win. Removing Egyptian "President" Mubarik will not end the droughts. It will not stop the practice whereby those who can afford to eat meat bid grains away from those who cannot. It will not end the free market demand for ethanol, nor will it likely end the forced transfer of wealth by government from those who can barely afford corn as food to those who can afford corn as fuel.

What we need to do is to take steps to make sure that food goes to those who need it to eat first, and to those who want it for something less valuable second, even when the latter can afford to bid the food away from the former on the open market, and even when the latter have the ability to use government to force food transfers from the poor to the rich......"

Sev
02-02-2011, 03:12 PM
Well there is now gunfire in the streets. Cairo museum is on fire. Its getting ugly.

cushioncrawler
02-02-2011, 03:22 PM
"..... then let them eat cake".
mac.

Ozz iz next. Koz bananas are going to go throo the roof. Koz, in Queensland, this morning, the roofs went throo the bananas. And i havtahav a banana for my lunch every day. The last time this happened bananas went from 50c each to 200c each -- gulp.

Ground zero for the hurricane woz Mission Beach (house blocks $1,000,000). There iz a peninsula there and the whole of it belongs to a relativ of a relativ, and they recently built a house on it -- solid concrete i think -- probly ok.

Chopstick
02-02-2011, 03:46 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">"..... then let them eat cake".
mac.

Ozz iz next. Koz bananas are going to go throo the roof. Koz, in Queensland, this morning, the roofs went throo the bananas. And i havtahav a banana for my lunch every day. The last time this happened bananas went from 50c each to 200c each -- gulp.

Ground zero for the hurricane woz Mission Beach (house blocks $1,000,000). There iz a peninsula there and the whole of it belongs to a relativ of a relativ, and they recently built a house on it -- solid concrete i think -- probly ok.
</div></div>

Why don't you grow your own? You just cleared out all them trees. I guess it would be hard to save them all and keep them fresh.

LWW
02-02-2011, 03:46 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">Here kum the muslims.
mac.

".......I do not know what the protesters are going to gain even if they win. Removing Egyptian "President" Mubarik will not end the droughts. It will not stop the practice whereby those who can afford to eat meat bid grains away from those who cannot. It will not end the free market demand for ethanol, nor will it likely end the forced transfer of wealth by government from those who can barely afford corn as food to those who can afford corn as fuel.

What we need to do is to take steps to make sure that food goes to those who need it to eat first, and to those who want it for something less valuable second, even when the latter can afford to bid the food away from the former on the open market, and even when the latter have the ability to use government to force food transfers from the poor to the rich......" </div></div>

Your error is that the free market demand for ethanol is below production costs.

If this wasn't true the gubmint wouldn't feel obliged to subsidize it.

Remove the gubmint mandate and ethanol production ... from food stocks anyway, other countries are using sugar cane stalks with different results ... vanishes.

LWW

cushioncrawler
02-03-2011, 02:51 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">Ozz iz next. Koz bananas are going to go throo the roof. Koz, in Queensland, this morning, the roofs went throo the bananas. And i havtahav a banana for my lunch every day. The last time this happened bananas went from 50c each to 200c each -- gulp. Ground zero for the hurricane woz Mission Beach (house blocks $1,000,000). There iz a peninsula there and the whole of it belongs to a relativ of a relativ, and they recently built a house on it -- solid concrete i think -- probly ok.</div></div><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Chopstick</div><div class="ubbcode-body">Why don't you grow your own? You just cleared out all them trees. I guess it would be hard to save them all and keep them fresh.</div></div>I dont think anyone grows good bananas in Victoria unless in a hothouse. I remember we had a banana tree when we lived in Townsville, Queensland.
mac.