The results of QE1 and QE2: according to UN Food Prices Climb at 26.4% Annualized Rate in February

Posted on March 3, 2011



World food prices rose 2.2% in February from the previous month (a 26.4% annulaized rate) to a record peak, according to the The Food and Agriculture Organization of the United Nations.

It is the eighth consecutive rise in the FAO food price index.

The index stood at 236 last month, the highest record in real and nominal terms since the agency started monitoring prices in 1990.

Bottom line: The money printing being done by central banks across the global is about to have its impact. There is no question that some of the food price increase can be attributed to non-monetary supply and demand factors, but price inflation caused by money printing always rears its ugly head at the weakest point. This time around it is with food prices. But the increases will go way beyond food, and the soaring stock market prices are proof plenty that a lot of this has to do with money printing pushing  prices higher.

Sourceofrealnews take on previous story:

As old proverb goes there is no such thing as free lunch and the massive printing of money carried out by central banks around the world is another piece of proof to that. What is the most tragic about this situation is that “free lunch” quantitative easing has ended up being one of the most notable redistributor of wealth from ordinary people to corporate aristocracy in two ways:

1.       This money printing graze started by central banks around the world to bail out and save the mega corporations who had taken big risks during the boom ended up moving all the bad bets on accounts of general public. As you know those bad bets are now being paid back by increased taxation and as you also may know paying taxes is a privilege reserved only those not being part of corporate elite who has toolbox of ways to use legal tax dodging strategies. E.g. BofA nonexistent tax payments during the last 10 years.

2.       As the former wasn’t bad enough the general public is axed second time. This printed bailout money is now fueling up inflation- a second hidden tax additionally to already increased taxation and so called austerity measures. Again profiting from inflation by speculations in different markets and avoiding the wealth destroying effect of it is again privilege of top powers- something meant not for me or you.

All in all the corporate equals of equals in western society first took the profits during the boom and avoid paying taxes from those. Secondly they sold the “bad paper” to governments and cashed in nicely on bailout money. Third: bailouting has created environment of rapid inflation and again corporate equals profit nicely on speculations while the real wealth of general public is destroyed.

Posted in: Uncategorized