2/24/2011 Portland, Oregon – Pop in your mints…
Today we can hardly believe our eyes. What appeared to be a simple revolution in a remote land, Tunisia, has begun a chain of events that may touch every person on the planet before it is through. We will call it the "Fire" of revolution, at it seems to be catching everywhere. The grievances of a generation are beginning to be aired in public forums from Tripoli to Madison, Wisconsin. As you are aware, we are of the opinion that the spark for this fire began it what may appear to be a very far away place. Washington, D.C.
While many conspiracy theorists have their own, well, theories, we believe that this is collateral damage from the Federal Reserve's misguided attempt to leave no debt unpaid by simply printing the money up to pay them. It is simple enough to do in their ivory towers, but the consequences in the real world, in the form of trade and production imbalances, which are sometimes referred to as "Malinvestments," are absolutely and totally destructive to balance in society.
The consequences of printing money are generally felt in two forms.
The most obvious form is what is being seen in Greece and now Wisconsin. In these cases the government made promises to workers, retirees, and other constituents that they cannot honor. The governments appear to be doing the honest thing and are effectively defaulting on these promises. However, they are attempting to default at exactly the wrong moment, as the increased money supply begins to pinch workers in the developed world. In both cases, many public workers are simply being asked to give up privileges such as the ability to take a long holiday at the beach. In both cases, we are seeing sometimes violent evidence of just how hard it is for the government to default on its promises.
The less obvious and more damaging form of consequences are what we are seeing in Tunisia, Egypt, Yemen, Algeria, Bahrain and Libya. In these cases, the governments are not technically defaulting on promises, rather, they are seen as the scapegoats for rapidly rising food costs which threaten to drive many to the point of starvation. These rising food costs are the indirect result of the governments in the developed world attempting to give their public employees holidays at the beach. Naturally, with the stakes higher in the developing world, a sense of desperation has set in and the pace of and violence involved in the uprisings is markedly higher.