FedUpUSA

Archive for the ‘Oil’ Category

Apparently, a protest that started in Georgia is now going national.  I can definitely get behind this.  Whoever came up with this has the right idea.  Let’s put the blame where it goes.  Our high prices are not because of ‘big oil,’ nor is it because of demand (demand for everything has been falling for 3 years), it is due to one thing and one thing only:  This Administration and Congress allowing the Federal Reserve’s monetary policy of devaluation of our currency. 

The bailouts, the games, the welfare for bankers and Wall Street, the ‘quantitative easing’ all must END!  If it does not, Obama and his minions and all of Congress who have refused to stand up against this destructive monetary policy must be driven from office.

Help educate others about whose fault all this is.  When it comes right down to it, Obama has the power himself to stop the Federal Reserve, but neither he nor anyone in Congress has done one thing to stop what is happening to our dollar.  MAKE THEM LISTEN!  Leave a sticky note!  Leave them everywhere you see high prices!

Be sure take pictures of your STICKY NOTES, upload them to your Facebook, TAG all your friends in the pics and then also be sure to share them with the event page.

Join the Official FaceBook Event by clicking here.

See the original photos at this FaceBook Gallery

No quantitative easing for oil – The Federal Reserve can digitally print money into existence but this does not create more oil. Federal Reserve has a comic book section?

The Federal Reserve continues to support a flawed banking system that has ignored the urgent calls for reform in spite of the greatest financial collapse since the Great Depression.  Bankers and fellow politicians understand that each day that passes without serious reform allows one more day for the painful memories of 2007, 2008 and 2009 to be slowly erased like castles in the sand.  It was rather clear who led us into this mess in 2007 and most would agree it was the financial sector and their ill advised reward systems.  It was greed run amok yet today you have some politicians trying to argue in favor of the banks that fault is really too hard to ascertain or place on only one group therefore no real changes can take place.  At the very least hands off the compensation packages of the top 1 percent in the financial sector that have pilfered the wealth of the nation is their core argument.  The Federal Reserve is not a government institution and contrary to public perceptions is mainly designed to protect the banking interests, not the interest of the people.  Searching for more data I stumbled on comic books put out by the Fed. 

Federal Reserve comics

Source:  New York Fed

Interestingly enough we don’t find a mention of the giant banking powers that helped put together this system back in 1913.  Largely designed to protect larger banks from competition, the Fed was brought into existence under the guise of nationwide stability.  I think people that lived through the Great Depression might argue that the Fed didn’t exactly provide stability back then.  And what about our current fiasco?  Would the millions of investors that bought junk mortgage backed securities think the Fed help provide stability?  If stability was one of the main missions of the Fed it has failed many times throughout history.

Yet I do have to give it to the Fed that they really don’t hide what they are doing:

I know the above isn’t shocking to many readers but ask most Americans and they would be stunned to find out that many banks can create money out of thin air.  With a 14% reserve requirement a bank with a $100 deposit would ultimately create $714 worth of “money” throughout the system.  This is how the Federal Reserve system largely targets inflation over time.  We are seeing more and more pressure on many items including food prices going upwards because a weaker U.S. dollar is chasing items that are largely finding more and more demand.

The Fed has a hard time combating against items like oil where production is based in reality instead of fictional digital programs like quantitative easing that allow the Fed to buy up junk paper in exchange for U.S. Treasuries.  In other words our money gets weaker.  Yet look at world oil production per day:

People forget that the U.S. is number three in oil production but the big issues we have occur when we look at the consumption side of the equation:

Much of our trade imbalance each month occurs because of this oil consumption.  With a rising China and India demand for oil will continue from many of these nations with large populations that demand the same goods we use.  No amount of printing money can create more oil reserves.  The amount of oil is finite and there is only so much that can be produced per day.  What this means is that it is likely the case that we are going to see expensive oil from here on out.  We may experience minor corrections but the overall trend is now going to be higher:

The Federal Reserve can control banks and print as much as they like in a world detached from the limits of nature.  Yet our oil based economy uses a commodity that is finite in nature and no amount of printing money will create more fossil fuels.  The Fed was designed in a time when it was thought that we would never reach a point of running out of any good in the world.  It was the perma-growth model.  It is no surprise that the housing bubble was born at the hands of Alan Greenspan who created an environment for massive mortgage market speculation that caused the housing market to rally as if it would go on forever like some endless well.  The belief was that unlimited demand would somehow keep housing prices going up.  In the end there is a finite limit but not before big banking interests were able to take money out of the system at each step.

The Fed can give us a comic book on how things work but most working and middle class Americans need only look at their paycheck and the cost of daily living to know where things stand.  The Fed is debasing the currency to protect banks and transfer wealth from the middle class to the top 1 percent.  Not sure if that is covered in the comic book.

My Budget360

2011 has already been the most memorable year in ages and we haven’t even reached April yet.  Revolutions have swept the Middle East, an unprecedented earthquake and tsunami have hit Japan, civil war has erupted in Libya, the price of oil has been soaring and the entire globe is teetering on the brink of economic collapse.  It seems like almost everything that can be shaken is being shaken.  Unfortunately, it does not appear that things are going to settle down any time soon.  The Japanese economy has been dealt a critical blow, the European sovereign debt crisis could flare up again at any moment and the U.S. economy could potentially plunge into another recession by the end of the year.  The global economy and world financial markets were really struggling to recover even when things were relatively stable.  If all of this global instability gets even worse it could literally rip world financial markets apart.

Yes, things really are that bad.  The mainstream media has been really busy downplaying the economic impact of the disaster in Japan and the chaos in the Middle East, but the truth is that these events have huge implications for the global economy.  Today our world is more interconnected than ever, so economic pain in one area of the planet is going to have a significant effect on other areas of the globe.

The following are 10 economic disasters which could potentially rip world financial markets to shreds….

#1 War In Libya

Do you think that the “international community” would be intervening in Libya if they did not have a lot of oil?  If you actually believe that, you might want to review the last few decades of African history.  Millions upon millions of Africans have been slaughtered by incredibly repressive regimes and the “international community” did next to nothing about it.

But Libya is different.

Libya is the largest producer of oil in Africa.

Apparently the revolution in Libya was not going the way it was supposed to, so the U.S. and Europe are stepping in.

Moammar Gadhafi is vowing that this will be a “long war”, but the truth is that his forces don’t stand a chance against NATO.

Initially we were told that NATO would just be setting up a “no fly zone”, but there have already been reports of Libyan tank columns being assaulted and there has even been an air strike on Moammar Gadhafi’s personal compound in Tripoli.

So since when did a “no fly zone” include an attempt to kill a foreign head of state?

Let there be no mistake – the moment that the first Tomahawk cruise missiles were launched the United States declared war on Libya.

Already the Arab League, India, China and Russia have all objected to how this operation is being carried out and they are alarmed about the reports of civilian casualties.

Tensions around the globe are rising once again, and that is not a good thing for the world economy.

On a side note, does anyone recall anyone in the Obama administration even stopping for a moment to consider whether or not they should consult the U.S. Congress before starting another war?

The U.S. Constitution specifically requires the approval of the Congress before we go to war.

But very few people seem to care too much about what the U.S. Constitution says these days.

In any event, the flow of oil out of Libya is likely to be reduced for an extended period of time now, and that is not going to be good for a deeply struggling global economy.

#2 Revolutions In The Middle East

Protests just seem to keep spreading to more countries in the Middle East.  On Friday, five Syrian protesters were killed by government forces in the city of Daraa.  Subsequently, over the weekend thousands of protesters reportedly stormed government buildings in that city and set them on fire.

Things in the region just seem to get wilder and wilder.

Even in countries where the revolutions are supposed to be “over” there is still a lot of chaos.

Have you seen what has been going on in Egypt lately?

The truth is that all of North Africa and nearly the entire Middle East is aflame with revolutionary fervor.

About the only place where revolution has not broken out is in Saudi Arabia.  Of course it probably helps that the United States and Europe don’t really want a revolution in Saudi Arabia and the Saudis have a brutally effective secret police force.

In any event, as long as the chaos in the Middle East continues the price of oil is likely to remain very high, and that is not good news for the world economy.

#3 The Japanese Earthquake And Tsunami

Japan is the third largest economy in the world.  When a major disaster happens in that nation it has global implications.

The tsunami that just hit Japan was absolutely unprecedented.  Vast stretches of Japan have been more thoroughly destroyed than if they had been bombed by a foreign military power.  It really was a nation changing event.

The Japanese economy is going to be crippled for an extended period of time.  But it is not just Japan’s economy that has been deeply affected by this tragedy.

According to the Wall Street Journal, the recent disaster in Japan has caused supply chain disruptions all over the globe….

A shortage of Japanese-built electronic parts will force GM to close a plant in Zaragoza, Spain, on Monday and cancel shifts at a factory in Eisenach, Germany, on Monday and Tuesday, the company said Friday.

Not only that, GM has also suspended all “nonessential” spending globally as it evaluates the impact of this crisis.

The truth is that there are a whole host of industries that rely on parts from Japan.  Supply chains all over the world are going to have to be changed as a result of this crisis.  There are going to be some shortages of certain classes of products.

Japan is a nation that imports and exports tremendous quantities of goods.  At least for a while both imports and exports will be significantly down, and that is not good news for a world economy that was already having a really hard time recovering from the recent economic downturn.

#4 The Japan Nuclear Crisis

Even if the worst case scenario does not play out, the reality is that the crisis at the Fukushima Dai-ichi nuclear plant is going to have a long lasting impact on the global economy.

Already, nuclear power projects all over the world are being rethought.  The nuclear power industry was really starting to gain some momentum in many areas of the globe, but now that has totally changed.

But of much greater concern is the potential effect that all of this radiation will have on the Japanese people.  Radiation from the disaster at the Fukushima Dai-ichi nuclear plant is now showing up in food and tap water in Japan as an article on the website of USA Today recently described….

The government halted shipments of spinach from one area and raw milk from another near the nuclear plant after tests found iodine exceeded safety limits. But the contamination spread to spinach in three other prefectures and to more vegetables — canola and chrysanthemum greens. Tokyo’s tap water, where iodine turned up Friday, now has cesium.

Hopefully the authorities in Japan will be able to get this situation under control before Tokyo is affected too much.  The truth is that Tokyo is one of the most economically important cities on the planet.

But right now there is a lot of uncertainty surrounding Tokyo.  For example, one very large German real estate fund says that their holdings in Tokyo are now “impossible to value” and they have suspended all customer withdrawals from the fund.

Once again, let us hope that a worst case scenario does not happen.  But if we do get to the point where most of the population had to be evacuated from Tokyo for an extended period of time it would be absolutely devastating for the global economy.

#5 The Price Of Oil

Most people believe that the U.S. dollar is the currency of the world, but really it is oil.  Without oil, the global economy that we have constructed simply could not function.

That is why it was so alarming when the price of oil went above $100 a barrel earlier this year for the first time since 2008.  Virtually everyone agrees that if the price of oil stays high for an extended period of time it will have a highly negative impact on the world economy.

In particular, the U.S. economy is highly, highly dependent on cheap oil.  This country is really spread out and we transport goods and services over vast distances.  That is why the following facts are so alarming….

*The average price of a gallon of gasoline in the United States is now 75 cents higher than it was a year ago.

*In San Francisco, California, the average price of a gallon of gasoline is now $3.97.

*According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier.

*According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.

#6 Food Inflation

Many people believe that the rapidly rising price of food has been a major factor in sparking the revolutions that we have seen in Africa and the Middle East.  When people cannot feed themselves or their families they tend to lose it.

According to the United Nations, the global price of food hit a new all-time high earlier this year, and the UN is expecting the price of food to continue to go up throughout the rest of this year.  Food supplies were already tight around the globe and this is certainly not going to help things.

The price of food has also been going up rapidly inside the United States.  Last month the price of food in the United States rose at the fastest rate in 36 years.

American families are really starting to feel their budgets stretched.  According to the U.S. Labor Department, the cost of living in the United States hit a brand new all-time record high in the month of February.

What this means is that U.S. families are going to have less discretionary income to spend at the stores and that is bad news for the world economy.

#7 The European Sovereign Debt Crisis

Several European governments have had their debt downgraded in the past several months.  Portugal, Spain, Greece and Ireland are all in big time trouble.  Several other European nations are not far behind them.

Right now Germany seems content to bail the “weak sisters” in Europe out, but if that changes at some point it is going to be an absolute nightmare for world financial markets.

#8 The Dying U.S. Dollar

Right now there is a lot of anxiety about the U.S. dollar.  Prior to the tsunami, Japan was one of the primary purchasers of U.S. government debt.  In fact, Japan was the second-largest foreign buyer of U.S. Treasuries last year.

But now as Japan rebuilds from this nightmare it is not going to have capital to invest overseas.  Someone else is going to have to step in and buy up all of the debt that the Japanese were buying.

Not only that, but big bond funds such as PIMCO have announced that they are stepping away from U.S. Treasuries at least for now.

So if Japan is not buying U.S. Treasuries and bond funds such as PIMCO are not buying U.S. Treasuries, then who is going to be buying them?

The U.S. government needs to borrow trillions of dollars this year alone to roll over existing debt and to finance new debt.  All of that borrowing has got to come from somewhere.

#9 The U.S. Housing Market

The U.S. housing market could potentially be on the verge of another major crisis.  Just consider the following facts….

*In February, U.S. housing starts experienced their largest decline in 27 years.

*Deutsche Bank is projecting that 48 percent of all U.S. mortgages could have negative equity by the end of 2011.

*Two years ago, the average U.S. homeowner that was being foreclosed upon had not made a mortgage payment in 11 months.  Today, the average U.S. homeowner that is being foreclosed upon has not made a mortgage payment in 17 months.

*In September 2008, 33 percent of Americans knew someone who had been foreclosed upon or who was facing the threat of foreclosure.  Today that number has risen to 48 percent.

#10 The Derivatives Bubble

Most Americans do not even understand what derivatives are, but the truth is that they are one of the biggest threats to our financial system.  Some experts estimate that the worldwide derivatives bubble is somewhere in the neighborhood of a quadrillion dollars.  This bubble could burst at any time.  Right now we are watching the greatest financial casino in the history of the globe spin around and around and around and everyone is hoping that at some point it doesn’t stop.  Today, most money on Wall Street is not made by investing in good business ideas.  Rather, most money on Wall Street is now made by making shrewd bets.  Unfortunately, at some point the casino is going to come crashing down and the game will be over.

Most people simply do not realize how fragile the global economy is at this point.

The financial crash of 2008 was a devastating blow.  The next wave of the economic crisis could be even worse.

So what will the rest of 2011 bring?

Well, nobody knows for sure, but a lot of experts are not optimistic.

David Rosenberg, the chief economist at Gluskin Sheff and Associates, is warning that the second half of the year could be very rough for the global economy….

The Economic Collapse

The world is becoming a very unstable place, and the pace at which things are changing all around us has become absolutely mind-numbing.  In fact, change has become one of the only constants in today’s world.  Once upon a time, people in the United States could actually make 20 or 30 year plans and feel confident about achieving them.  But now, nothing is stable anymore.  The financial crisis showed us that some of the biggest corporations on the globe can collapse in a single day.  The events of the past few weeks have shown us that entire governments can be brought down in a single week.  We live in a world where there are now very few “guarantees” that you can count on.  One of the only things that is guaranteed is that technology and information will continue to grow at exponential speeds.  This year, the total amount of information produced on electronic devices around the globe is projected to be more than a zettabyte.  A zettabyte is equivalent to one sextillion bytes.  In other words, imagine a one with more than 21 zeroes following it.

Many of the things that we take for granted today didn’t even exist a few short years ago.  Facebook has only been with us since 2004.  YouTube has only been with us since 2005.  Can you imagine a world where those two websites did not exist?

We live in a world of information overload.  Once upon a time it would have been possible to go to sleep for a decade and wake up and everything would still be pretty much the same.  But today if you were to do that you would be in for a case of severe culture shock.

Do you remember when you could buy a set of encyclopedias and the information in them would still be good a decade or two later?

Well, things do not work that way anymore.

In fact, most of the articles on this website will be obsolete a month from now.

In today’s world, you really have to think twice before you say that something is “not possible”.

A few months ago, it was absolutely inconceivable that Egyptian President Hosni Mubarak would declare to the world that he has “spent enough time serving Egypt“.

Yet here we are.

One week the government of Tunisia seemed perfectly stable and the next week it was toppled.

Do any of you out there still think that you can make realistic “plans for the future” in today’s world?

Once upon a time in America, many of us were taught that if we worked really hard in school we could get a great job with a great company.  We were promised that if we were faithful to that company for 30 or 40 years that we would be treated fairly and given a good pension.

Well, in today’s world you might as well crumple up that plan and throw it into the wastebasket.

There is no such thing as a stable job anymore.  Businesses are coming into existence and going out of existence faster than ever before.  Today, one out of every four Americans workers has been with their empl0yer for less than a year.

Most Americans still don’t really understand that they are now part of a global economy.  They keep thinking that things were the way they used to be.  They keep thinking that the U.S. economy is invincible.

Well, those days are long gone.  The United States is being deindustrialized at lightning speed.  Tens of thousands of manufacturing facilities and millions of jobs have been sent overseas.  China, once a complete economic backwater, is now kicking the crap out of us on the global economic stage.

Our financial system is certainly on incredibly shaky ground.  Will any of us ever forget what happened in 2008?

Do any of us actually believe that it can’t happen again?

Our health care system is also incredibly unstable.  Today, 46 million Americans have absolutely no health insurance.  That means that 46 million Americans are just one major injury or illness away from financial ruin with no protection whatsoever.

Not that those that actually have health insurance are protected.  According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.  Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that did have health insurance.

So just because you have health insurance does not mean anything.  One bad accident or one really bad disease and you could be totally wiped out.

Isn’t that comforting?

But the truth is that our entire economy is on the verge of total collapse.

World famous investor Harry Schultz recently published the last issue of his legendary financial newsletter.  After 45 years, the following is how Schultz summed up the economic collapse that we are now facing….

“Roughly speaking, the mess we are in is the worst since 17th century financial collapse. Comparisons with the 1930’s are ludicrous. We’ve gone far beyond that. And, alas, the courage & political will to recognize the mess & act wisely to reverse gears, is absent in U.S. leadership, where the problems were hatched & where the rot is by far the deepest.”

David Stockman, the former director of the Office of Management and Budget under Ronald Reagan was quoted by Schultz as saying the following about how desperate things are about to become….

“Get some gold, beans, water, anything that Bernanke can’t destroy. Ron Paul is right. We’re entering a global monetary conflagration. If a sell-off of U.S. bonds starts, it will be an Armageddon.”

Millions of Americans have become “preppers” in recent years as they have come to realize that our economy is headed down a very dark road.

But sadly, the reality is that the vast majority of Americans are not prepared for any kind of economic or natural disaster.  As this week has shown us, just the threat of a major snow storm can wipe out store shelves in a single day.

So what would this country look like if a major disaster fundamentally changed life in America and suddenly people were desperate for food and supplies?

It is a frightening thing to think about.

As the pace of change has accelerated dramatically, the U.S. government and other governments around the world have responded by trying to get a tighter grip on everyone and everything.

To get on an airplane in the United States today, you either have to allow a security goon to use a scanner to look over your completely exposed body, or you have to allow a security goon to feel up all of your private areas with the fronts of his or her hands.

Not only that, but the U.S. government has now deployed VIPR (Visible Intermodal Prevention and Response) teams to set up security checkpoints at bus terminals, subway stations and on major highways.

The America that so many of us once loved is rapidly disappearing.

But it is not just our man-made systems that are rapidly changing.  Something seems to be happening to the entire planet.  Flooding of biblical proportions has hit Australia, Brazil, China and Pakistan over the past 12 months.  Scorching heat caused massive crop failures all over Russia last summer.  Record-setting cold temperatures and snowfalls all over the northern hemisphere have scientists scratching their heads.  On top of everything else, mass deaths of birds and fish are suddenly being reported all over the globe.

Even the crust of the earth is becoming increasingly unstable.  Did you see that volcano go off in Japan the other day?  Over the past two years it seems like volcanoes have been suddenly erupting all over the world.

Not only that, but sinkholes have become an absolute epidemic all over the planet.  Some of these sinkholes have been so large that they have swallowed entire apartment buildings.

In addition, it seems like there is a magnitude 6 or magnitude 7 earthquake somewhere in the world almost every day now.  They have become so common that the mainstream media barely even takes notice of them anymore unless one happens near a very populated area.

None of us really knows what the world is going to look like ten years from now.  What will the “new” Facebooks and YouTubes be?  Will Ben Bernanke’s reckless money printing destroy our economy by then?  Will our U.S. dollars still be of any value ten years from now?  Will there even still be a U.S. dollar?

Will we still be able to feed most of the people in the world by 2011?  Will shortages of food, water and oil start driving people crazy?  Could some amazing energy discovery completely transform society?

Who will be the president of the United States?  Will there even be a president of the United States?  Will war have erupted in the Middle East by that point?  Will the United States be in another war by then?

The truth is that things are changing so fast that it is hard to even come up with the right questions to ask.  The world is going to change faster this year than it did last year.  In 2012 the pace of change will be even faster.

So buckle up and hold on tight because this is going to be one wild ride.

For much more on how incredibly fast the pace of change is in our modern society, check out the video posted below.  It is entitled “Did You Know?” and it has been viewed more than 12 million times on YouTube….

The Economic Collapse

As if the world economy did not have enough problems already, now the riots in Egypt threaten to send the price of oil soaring into the stratosphere.  On Friday, the price of U.S. crude soared 4 percent.  A 4 percent rise in a single day is pretty staggering.  The price of Brent crude in London closed just under the magic $100 a barrel mark at $99.42.  The incredibly violent riots in Egypt have financial markets all over the globe on edge right now.  Any time there is violence or war in the Middle East it has a dramatic impact on financial markets, but this time things seem even more serious than usual.  Many believe that we could see an entirely new Egyptian government emerge out of this crisis, and the uncertainty that would bring would make investors all around the globe nervous.  Financial markets like predictability, peace and security.  If Egyptian President Hosni Mubarak’s 30 year reign is brought to an end, it will severely shake up the entire region, and that will not be good news for the global economy.

Have you seen how violent these protests have become?  Cars and buildings are on fire all over the place.  Even the headquarters of Hosni Mubarak’s political party was burned down.  The Egyptian military has been deployed on the streets of Cairo.  Protesters have been showering government forces with stones, firebombs and anything else that they can find to throw.  Security forces have been using rubber bullets, water cannons and tear gas to try to disperse the protesters but those efforts seem to be doing little good.  Deaths and injuries are being reported all over the place.  There are even rumors that the wife and son of Hosni Mubarak have already left the country.

At this point, Mubarak has gone on national television and has announced that he has asked his cabinet to resign.  That is an absolutely stunning move, but it is doubtful that the protesters will be satisfied.  All over Cairo protesters continue to chant for Mubarak to resign.

The following is a short compilation of some raw video from the riots in Egypt….

These riots in Egypt come on the heels of violent uprisings in Algeria and Tunisia.  In fact, it seems like virtually the entire Middle East is in a very foul mood right now.  Riots have been reported in Lebanon, in Jordan and in Yemen over the past few days.

Some of the rioting has been motivated by economic factors, but unfortunately all of this rioting is only going to make the global economic situation even worse.  Concern over all of these riots is driving up the price of oil and driving up the prices of agricultural commodities.  These higher prices are going to make it even harder for the poor people in the Middle East to afford food.

But also it must be acknowledged that much of this rioting is being done for very deep political and religious reasons as well.  Many westerners are cheering the protests in Egypt because they envision the protesters to be some sort of “freedom fighters”.  But the vast majority of these protesters do not desire “American-style democracy”.  The Muslim Brotherhood is one of the groups at the heart of these protests.  The government that they intend to set up would not give “liberty and freedom for all”.  Rather, it would be a hardline Islamic government based on Shariah law.  According to Wikipedia, the Muslim Brotherhood bills itself as the “world’s most influential Islamist movement”, and their goal is to impose their version of Islam on society….

The Brotherhood’s stated goal is to instill the Qur’an and Sunnah as the “sole reference point for … ordering the life of the Muslim family, individual, community … and state”

So unless your version of “freedom” includes being forced to live like the Taliban, then you probably would not enjoy the “liberty” that the Muslim Brotherhood wishes to impose on you.

Coptic Christians all over Egypt are already being slaughtered even with a relatively pro-western president in power.  On New Year’s Day, an attack on a Coptic Christian church in Egypt killed 21 people.  The following is how one eyewitness described the scene to a reporter from the New York Times….

“There were bodies on the streets,” said Sherif Ibrahim, who saw the blast’s aftermath. “Hands, legs, stomachs. Girls, women and men.”

Once a radical Islamic government is installed in Egypt it will be open season on all Christians.

Yes, there is a whole lot of blame to be passed around to other nations, organizations and individuals in the Middle East for things they have done as well, but that does not excuse the horrific persecution of the Coptic Christians in Egypt.

We have to call a spade a spade.  We cannot condemn some forms of tyranny and persecution and then make excuses for other forms of tyranny and persecution just because those doing it are on “our side”.

Replacing one form of tyranny (Mubarak) with an even more repressive form of tyranny (The Muslim Brotherhood) is not something that those who love liberty and freedom should be celebrating.

In any event, everyone should be able to agree that these events are going to severely rattle world financial markets that were already very nervous about 2011.

If these violent riots in Egypt and other countries in the Middle East keep going on, the global price of oil and the global price of food will continue to soar.

Not that oil and food were not going to be heading in that direction anyway.  Yesterday I wrote about the warning signs for the global economy that we are starting to see.  Wheat and corn have absolutely skyrocketed in price over the past 6 months.  The UN had already been projecting that we would see a 30 percent increase in the global price of food in 2011 even before these riots.

If you add rampant political instability into the mix, there is no telling how bad food inflation could get this year.

Many experts have already been forecasting substantial food shortages throughout the world this year based on all the extreme weather we have been having.  So what is going to happen if something causes those food shortages to be even worse than anticipated?

We live in very interesting times my friends.  The globe is becoming an increasingly unstable place.  Even nations that seemed perfectly stable just a few months ago can erupt in rioting at almost any moment.

People around the world are getting angry.  Thanks to the Internet, people are able to circumvent official government propaganda more easily than ever before.  This is making it harder and harder for governments to control people.

Egypt tried to regain some of that control during the riots by shutting down cell phones and by shutting down the Internet but it did not work.

Let’s just hope that Egypt can soon find peace and that the changes that are made in the Egyptian government are good for freedom and liberty.

The Economic Collapse