Food Prices Aren’t Rising, Fiat Currencies Are Collapsing, Massive Monetary Inflation
By: Jeff Berwick
Feb 04, 2011
It has been a most interesting month of January. A likely presage to an interesting year to come.
In these pages we have spoken often about what will be the first real domino to fall in causing a chain reaction ending up in massive global political and financial change. Often we follow our predictions with a statement something along the lines of, “but, in actuality, the defining primary event will likely come from somewhere that no one expects”.
I think it’s safe to say that no one expected TEOTMSAWKI (The End Of The Monetary System As We Know It) would begin in Tunisia!
It appears that people, including Americans and westerners, are willing to put up with all manners of oppression, taxation and economic stagnation until it reaches the point where they are so impoverished that they cannot even afford to eat.
It is, at that point, that they finally fight back against their oppressors as was the case in Tunisia – and which set off a chain reaction of protests and uprisings in Yemen and Egypt along with other related uprisings in Algeria, Lebanon and Jordan.
It is still far too early to begin to make any conclusions about these new developments caused partially by rising food prices in the Arab world but there are three very possible outcomes that all threaten the tenuous US dollar based financial system:
1. The worst case scenario: Many of the current governments in the Arab world are overthrown, giving way to the democratically elected devils they didn’t know, who delve the entire Middle East into war. This has any number of potential outcomes including nuclear war. It could also drag the US military into hostilities which would further increase the pace of US dollar monetary inflation (needed to pay for further war) which would further hasten the dollar hyperinflation.