Sunday, February 27, 2011

Iraq Protests

The Iraq  protest has changed everything.  The protests that have been ensuing in North Africa spread to a country where the US had put its seed, and the seed did not grow as intended.  The people must be upset not only with food prices, which are directly related to Central Bank policy, but with the way their Republics are set up to be reliant on a global finance structure.  The protests have changed the way world "democracy" works.

Basically the "Third World" states are taking their court back.  Not that it will do them much good now that fiat money has destroyed wealth creation in the "First World", but people take what they can get.  In the long run it will be better for the US and Europe not to be reliant on oil from the Mid East and Africa, but the snap back of higher oil prices is sure to roil global exchanges.

Oil is about to be very short in supply out of the Mid East and North Africa.  Oil production, whereas once at the top of priorities, is now below food and regime change.  People have to eat first, before they can work in the oil fields.  Now that they can not eat at a reasonable price portion of their earnings, they have begun to question their political, and financial, system.

As Asia by China and Vietnam join the protests, and Indonesia before them,  the wheels are falling off the economic car.  When the input cost of oil breaks the back of the consumer, there will be nothing supporting the system.  The world will now skid, and maybe for a while.  You know the action hero who rolls out of the car  before it flies off of a cliff?  Yeah, be that hero.  Buy silver.

No comments:

Post a Comment