Inflation, food riots and Middle East unrest - all tied back to "green" policies and monitary policies
First, "green policies" pushing ethanol has diverted huge amounts of corn to ethanol production. Corn has historically been shown to be inefficient for ethanol production, especially compared to sugar cane or sugar beets, but corn is pushed due to government subsidies to corn producers. The result is a large diversion of corn from food to ethanol. This results in reduced exports (America still feeds the world) of corn and a tremendous inflation in food products tied to corn.
Food prices are tied to dollars. The Fed has been dumping hundreds of billions into inflationary policies through the printing of money, as opposed to the natural growth of the economy. This results in an inflationary push on food prices.
In the Middle East, much of the population rely on government payouts and price controls. But, with inflation, food prices have jumped tremendously, putting the screws on the population. The result is that we have reached the tipping points in Albania, Tunesia, Egypt, Syria, Jordan, and Saudi Arabia. You have a few at the very top, a limited middle class, and a huge underclass that are often educated, but unemployed. Add to that the instant communication that exists today, and you see the results.
The hope is that a more democratic Egypt will arise, and lead the Middle East away from the extremists. If that happens, the region will stabilize. If it flips the other way, we can see $250/500 a barrel oil and a true depression around the world. It would push the PIIG european countries over the brink and crash the Euro, and, with our economy, it would destroy any hope of recovery.
Sorry, but my crystal ball is very cloudy as to which way it will go. However, I would be very leery about putting on any additional debt at this time.
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