The League of Arabian states has just experienced its first populist revolution in modern times in Tunisia. The prime minister has announced that he is in control now that the President of the last 23 years or so has fled the nation. The nation has only experienced 2 leaders during its existence.
There is a long list of national leaders who have to be looking around, wondering if they could be next. Autocratic dictators, despots and or Presidents for life have always ruled the region. This changed today when the population of Tunisia over-threw their President.
It appears that the Federal Reserve’s intentional actions of exporting inflation to the world, has claimed its first government. The people have grown angry watching the very staples of life become to expensive to purchase on meager earnings.
This is but the first of what will probably be many events like this around the world. The people in mass can be cowed and systematically robbed, but if you take away their food they will rise up quickly.
Marie Antoinette’s supposed comment about “let them eat cake”, and the response of the French masses, is as likely and dangerous today to leaders who fail to understand its meaning, as it was to her health then. The people will respond violently to rapid food inflation costs. Nations will fall.
The inflation in food prices is a worldwide crisis, that is still building. The heavy rains in Australia and Brazil, will have longer lasting impacts than the global markets are noticing yet.
The worldwide reserve of spare calories is shrinking as we experience global issues in places like Russia, Australia & Brazil. The US is one of the last nations with any form of strategy food reserves, and we have very very little left.
The price of fresh food is going to continue to increase as the price of energy continues to rise. As a nation, we have grown use to food being shipped to our grocery stores from all over the world.
New Zealand Apples, or Raspberry’s from Chile, or Mexican Avocado’s our world food supply choices are shipped in bulk using ever more expensive energy. The western world fiat devaluation process will have real world issues in food prices, in domestic currency terms. Tunisia will just be the first example.
Nations that have subsidized staples will find the process of introducing real world prices harder and harder as we go forward. It will cause ever growing examples like Tunisia, where the pent up anger finally finds a subject it can focus on. The west may be unleashing democracy into the world’s dictatorships via the inflation exportation approach.
Market dynamics will either bankrupt these emerging markets via rising import costs, or their exports will be impacted by the currency wars.
This Arabian Revolution will not be the last, the genie is out now. Their leaders should be worried about putting the genie back in the bottle.