Bernanke's Quantitative Easing and Rising Food Prices

[EL PRESIDENTE]

Any relation? I read elsewhere on teh interwebs that QE is a culprit for some of the rising food prices ...even extending to some of the tensions in egypt?


http://www.globalresearch.ca/index.php?context=va&aid=22907

As I've previously noted, interest rates have risen both times after the Fed implemented quantitative easing.

Graham Summers points out that food prices have also skyrocketed both times:

In case you’ve missed it, food riots are spreading throughout the developing world Already Tunisia, Algeria, Oman, and even Laos are experiencing riots and protests due to soaring food prices.
As Abdolreza Abbassian, chief economist at the UN’s Food and Agriculture Organization (FAO), put it, “We are entering a danger territory.”
Indeed, these situations left people literally starving… AND dead from the riots.
And why is this happening?
A perfect storm of increased demand, bad harvests from key exporters (Argentina, Russia, Australia and Canada, but most of all, the Fed’s money pumping. If you don’t believe me, have a look at the below chart:

 

[3RA1N1AC]

inflation raises the price of eveerything

also

the drought made this one of the weakest corn years ever, and pretty much every farm animal eats mostly corn, so crap

 

[Denny Crane]

inflation raises the price of eveerything

also

the drought made this one of the weakest corn years ever, and pretty much every farm animal eats mostly corn, so crap

Even in a non drought year, turning corn they normally feed to animals into ethanol means less animals can eat.

But the lower dollar value does cause other nations (china, arabs) to sell us their stuff for more dollars to make up for the lesser value of them.

 

[maxiep]

Think of quantitative easing like Nigel Tufnel's amplifier. It may say it goes to 11, but it still goes to 10. In other words, you may have $11 in your pocket, but it's really worth $10. And if you only have $10, now it's worth $9.10.

The people who suffer are the good actors. The savers and the people without debt.

 

[Denny Crane]

Think of quantitative easing like Nigel Tufnel's amplifier. It may say it goes to 11, but it still goes to 10. In other words, you may have $11 in your pocket, but it's really worth $10. And if you only have $10, now it's worth $9.10.

The people who suffer are the good actors. The savers and the people without debt.

And people on a fixed income. Like retirees. Thanks Obama!

 

[maxiep]

And people on a fixed income. Like retirees. Thanks Obama!

Bingo. How a Jew or a Senior Citizen can vote for this President is beyond me.

 

[BrianFromWA]

I don't know....AARP ads saying how the President is basically the savior of the $700+B Medicare overruns that the R's want to start reducing probably make fence-sitting seniors (especially those who don't care about kicking the can down the road) pay attention, and seem like they're pretty effective.

 

[maxiep]

I don't know....AARP ads saying how the President is basically the savior of the $700+B Medicare overruns that the R's want to start reducing probably make fence-sitting seniors (especially those who don't care about kicking the can down the road) pay attention, and seem like they're pretty effective.

President Obama met with Congressional leaders two weeks ago and was asked about what the replacement of the $716B would be; how he was going to make up for it. He deflected his answer three times. On the fourth time, he answered that they would be taken care of with Obamacare. In other words, the seniors go from Medicare to Medicaid, losing their choices and current level of support. But hey, he cares!

 

[Denny Crane]

A good read.

http://reason.com/archives/2012/09/13/occupy-the-fed

 

[Haakzilla]

...end the fed, period!

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
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“I believe that banking institutions are more dangerous to our liberties than standing armies.” ~Thomas Jefferson