West Nears Edge Of A Cliff As Central Planners Ensure Collapse

Enclosed is a good expose on how the Fed is not only inducing inflation domestically, but how the US is exporting inflation of food prices globally.  This is the number one cause for social unrest and riots in poorer countries.

Food represents 5 - 15% of the average US household budget.  When food prices rise, we complain.  However, in third world countries, food may represent up to 85% of household income.  When food prices rise there, they literally starve.  They don't have credit cards to get them through the end of the month.

Scale and relativity are important concepts, because while those under the poverty line in America can be well-fed due to social welfare programs like SNAP (food stamps), the average income in third world households might be $2/day.

They are not rioting in the streets, risking getting shot and killed by their own governments merely to protest evil dictatorships.  They aren't interested in following the American democracy model either, despite the US media portraying that talking point (and justifying military "intervention").  They merely want to put food on the table.

As long as the Fed, the ECB, Bank of Japan, Bank of England, and all highly leveraged central banks continue to create trillions of currency units worldwide, the poorest will continue to suffer the greatest due to rising food prices.  The US and United Nations can literally trigger the collapse of a poorer country by starving the citizens out.  This is one of the insidious tenets of US foreign policy that the media continues to ignore.

Of course, the captured media will use events of charitable aid as propaganda to show the world how the developed economies are there to help the poor, huddled masses.  But the truth is the western world is competing with China to secure energy resources, whether it means diverting oil fields (Iraq, Syria, Iran), or protecting potential oil tanker choke holds in the Suez Canal (Egypt) or the Strait of Hormuz (Iran).  This means no-fly zones, providing weapons to a shifting allied and extreme base (see al-Qaeda in Syria), or direct military intervention if desired outcomes aren't achieved.

One of the desired outcomes is to collapse the economies of the countries in question.  This is the surest way to bring down the leadership of said countries, opening the door of opportunity for "aid."  And the best way to create social unrest is to artificially kindle inflation of food prices.

While the mainstream media may tout easy monetary and zero-interest rate policies as "stimulative" to the economy, the actual reasons are primarily two-fold:  1) save the insolvent banking system from collapsing, and 2) mask the global inflationary aspects of infinite QE.  Pinning interest rates to zero provides a cover for profligate money printing, as markets are temporarily induced into discounting future inflation.

The operative word is "temporarily" because fiat counterfeiting schemes never end well.

A third reason for QE is to create a bid for US Treasury bonds in a market where foreign participants (bond investors) are abandoning Treasuries for hard assets.  China is now a net seller of Treasuries as they see the persistent debasement of the USDollar (currency and inflation risks), and the increasing insolvency of the US government (credit risk).

And as I predicted, if bond yields continue to rise in a macro environment of a global currency war, bond holders also face interest rate risk (and conversely, declining bond prices).

In lieu of buying US Treasury bonds, China and other sovereign wealth funds are investing in energy companies, producing farmland, infrastructure plays in mineral extraction, and of course, gold.

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