Having been a little over a year ago since I penned my last blog about Federal Reserve Chairman Ben Bernanke,and how I thought his policies would wreak havoc on the world financial system,it is time for a update.
He has publicly admitted to using your tax payer funds to send into orbit stocks,commodities,gold,oil,gasoline and whatever else banks,hedge funds,can find to speculate,manipulate,to make a profit on.
Meanwhile maybe your 401k has recovered more than half since the meltdown of 2007-08,if your unlucky to be a homebuyer since 2000 you've lost up to 50 pct of it's value since the top in 2005. A rising stock market does little to offset the millions of forclosures in the last 3 years.
There are now 40+ million Americans on food stamps and the employment percentage of the American public is as low as 1984. Yes no kidding!
Read on please.
Tunisia food riots,that brought down their government.
I admit I was way early on my "TIme Is Up" diary,but I believe that just because my timing is bad I will still be prophetic.
Time is up diary link
http://www.dailykos.com/...
The recent world events in Tunisia and just now in Egypt are in fact partly to blame on the Quantitive Easing policy put in place by Ben Bernanke and our Federal Reserve.
Since Bernanke first announced the program in July of 2010,soft goods commodities have gone straight to the Moon. Wheat,Corn,Rice,Oats,Coffee,Cocao,Live Cattle,you name it,it has gone Banannas. While dropping the living standard for billions of people in the developing world not to mention the poor,disabled,working poor and middle class everywhere.
Back in the early 1980's the word was "Stagflation",well it is back with a vengeance. Nobody talks about it,but it is alive and well.
Check out what Kraft Foods says about it's price outlook.
Please click on link
http://finance.yahoo.com/...
"Kraft Foods Inc., like many of its peers, is feeling some pricing pressure.
The company reported Thursday that price increases it made to cope with higher ingredient costs are not going to be enough to sustain its profitability and it plans further hikes this year.
As one of the world's largest food companies, Kraft is feeling the pinch from higher costs for wheat, corn, sugar and other commodities.
The company already raised prices on most of its products in Europe and more than half in North America. But it said its input costs rose nearly $500 million during the fourth quarter and its profit margins suffered accordingly."
Also the Giant commercial food service company Sysco.
Please click on link
http://www.marketwatch.com/...
"Sysco said accelerating food costs hampered customer purchases. Sysco said its food cost inflation was up 4.5%, spurred by double-digit inflation for meat, dairy and seafood. That compared to deflation of 3.5% in the year-ago period."
I call this the "Bread Revolution" a simplistic term to describe the upcoming financial upheavel that the Federal Reserves complete policies of idiocy will unleash on this country as it already has in parts of the under devoloped world.
Ben Bernanke will be reponsible for the financial crisis of 2007,2008 and also the present 2011 crisis that is just starting to rear it's ugly head.
World interest rates are heading higher. Since the first of the year rates from 1 to 30 year maturity have risen upto 40 pct at this time.
Please see link below and view data 2011 to date.
http://www.treasury.gov/...
If this continues who will bail the USGOV and the Federal Reserve out, who's balance sheet is massively bloated with mortgage backed securities and US Treasury debt.
There is one "out" to this problem and the Fed knows it. Crash the Stock Market. That will produce a wholesale run for safety and drop the yields down to depression levels. Maybe and Maybe not! If Bernanke panics and another round of money printing begins the Bond Market could collapse. The result would be much like what Greece and Portugal are experiencing right now. Massive budget cuts and a deflationary spiral,exactly what Bernanke wants to avoid.
No matter what you hear,all the tout and made up hopium,things are setting up to be very problematic in the next few years.
This Stagflation will continue to erode your living standard well after the bubbles burst and the Stock market crashes down, atleast for a year after it happens.
China has the largest property bubble in the world at present and food price inflation running double digits a year. The Chinese governments plan is to gently engineer property prices down 30 pct. All I can say is good luck, we all have seen what happens when a property bubble bursts. This will have far reaching implications around the world.
I could go on and on. Maybe some day we Americans will have to say no to the reckless and ill thought out engineered policies of our Central Bank and with the implicit approval of our Government at the highest levels.
Egypt did just that! The "Bread Revolution" is a reality.
A chart on the price of Sugar that started up exactly when Bernanke announced his intentions for another round of Quantative easing.
It has more than doubled since.
A chart of the Reuters CRB Index, take note of the move since June '10
Please click on link for chart
CRB Chart