{"id":37457,"date":"2011-01-31T01:01:01","date_gmt":"2011-05-19T00:05:29","guid":{"rendered":""},"modified":"2011-05-19T00:05:29","modified_gmt":"2011-05-19T00:05:29","slug":"economics_of_the_egypt_uprising","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2011\/01\/31\/economics_of_the_egypt_uprising\/","title":{"rendered":"Economics of the Egypt Uprising"},"content":{"rendered":"
\n

RUSH: This is from BigGovernment.com, Andrew Breitbart\u2019s site. It\u2019s a post by Chriss Street, and the title of the post: ”Fed Policy Burns Down the Middle East, Who\u2019s Next?\u2019 — Chairman of the Federal Reserve Ben Bernanke launched a second round of Quantitative Easing (QE2) in October, following over a year of growth in the economy at a robust rate of over 3%. Most analysts pooh-poohed QE2 as an insufficient economic stimulus to create enough inflation to reduce unemployment.\u2019 Now, Mr. Street here writes, ‘I warned that QE2 was like pouring inflationary lighter fluid on the world and then lighting a match. With food inflation now running at 15% in poor countries, the Middle East is just the first area to burn, but fire is smoldering in much of the world and other fires will break out soon. QE2 is a program by the U.S. Federal Reserve to inject $600 billion of U.S. dollars in the financial system by repurchasing an equivalent amount of U.S. Government bonds. Once the money is paid to the former bondholder, they deposit the cash in banks. Banks take deposit dollars and leverage them by 6 to 10 times creating $3.6 to $6 trillion in credit. Given that the Gross Domestic Product of the U.S. economy is only about $14 trillion annually, it would impossible to immediately purchase 25-40% of the entire economy.<\/p>\n

‘The theory is that the financial assets rise on the huge inflows of QE cash, investors will feel wealthier and go to the malls and the car dealerships to ‘shop till they drop.” They think they\u2019ve got money and they don\u2019t have it. It\u2019s all borrowed money, but they go spending it, and they invest it in stocks. ‘The problem with theory is that QE2 money quickly drove up commodity food prices around the world.\u2019 We know this. So did ethanol. Ethanol drove up the price of corn, which is a commodity, food. We know that oil prices are a hundred bucks a barrel, flirting in that range, and showing upward pressure. Now, the upward tick in commodity food prices is noticeable in the United States, but not as noticeable as it is around the world, and here\u2019s why. In America we spend 10% of our personal income on food for three meals a day. That\u2019s the best statistical research that there is on this, and 25, 30% on housing, 10% of our personal income on food for three meals a day. ‘The impact of food inflation is devastating in over half the world that spends approximately 50% of personal income on food for two meals a day.\u2019 And that\u2019s the sad reality for much of the world, half of their income for essentially two meals a day. <\/p>\n

‘The 15% QE2 induced commodity food price increase has reduced the amount of food poor people can purchase by almost 1\/3.\u2019 This is written in insider lingo. The bottom line is that all of this money flooding the markets has raised commodity prices, ethanol plus QE2, and commodity prices equals food, and around the world inflation — by the way, we\u2019ve been reporting this happening in the UK over fuel prices, food prices, it\u2019s happening. It\u2019s not being reported here that it\u2019s happening around the world, and it certainly is not being reported here, the effects in this country because, of course, the regime\u2019s primary objective here is to continue this myth that we\u2019re in a roaring economic recovery. So they\u2019re not gonna report the truth of inflation in this country, be it food or otherwise, energy price inflation or otherwise. And they are barely touching on the price rise in basic essentials around the world. This guy\u2019s theory is that it is our federal spending, printing of money, QE2, that\u2019s causing this price rise and is partially responsible for the fires and the blood in the streets in Egypt. It\u2019s just one of the many things the people there are tired of. <\/p>\n

Now, we\u2019re told that what\u2019s going on in Egypt is all political. And that\u2019s silly. It would be the same thing as being told that riots in this country are purely about policy, when they aren\u2019t. If you go back over the history of riots in this country has always been about economic matters, one way or another. Always about poverty, unfair distribution of resources or what have you. So you\u2019d be wise to consider the possibility that part of what\u2019s going on in Egypt is because the price of food is going up and nobody in Egypt can do anything about it because the source of the problem is here. And you can\u2019t take ethanol out of the equation here, either, because that takes food off the market and turns it into gasoline, corn. <\/p>\n

Now, the riots and revolutionary activity burning down Tunisia — you\u2019ve heard about that, right? You haven\u2019t? Well, yeah, it\u2019s happening in Tunisia, too, folks. If you read foreign media on the Internet I\u2019m sure you\u2019ve heard about the riots in Tunisia, and in Yemen. You\u2019ve heard about the riots in Yemen, right? You haven\u2019t? Well, read the foreign media and you\u2019ll read about the riots in Yemen and Tunisia, and now Egypt. Egypt is third to the party here. (interruption) Jordan, that\u2019s exactly right, Jordan, King Abdullah, big ally of the United States, as is Egypt, by the way, that\u2019s what\u2019s kind of scary about this. But, anyway, there\u2019s unrest throughout the Middle East. There has been unrest in Iran for a long time. Of course, the Drive-Bys here will not talk about it. But Egypt is not the first powder keg. It\u2019s the third. Jordan may be the third or fourth. And I just want you to think about the possibility that the revolutionary activity going on is about gut-level economics. <\/p>\n

The Drive-Bys here would love to tell you that the people are rioting over freedom and civil rights and so forth. Of course, you can\u2019t take those things out of the equation. But gut-level economics, ‘Can I get enough food, can I afford to eat and feed the family? Prices are going up, I can\u2019t do anything about it and this idiot running the country, Mubarak, doesn\u2019t seem to care.\u2019 That\u2019s all it would take. ‘Do you think Americans would riot and throwing out our government if we were forced to cut back to eating 1 1\/3 meals a day?\u2019 We spend 10% of our income for three meals a day. What if it cost us 50% of our income for one and a half meals a day? Do you think Obama, hope and change, any of that would matter? ‘Once riots start people in cities hoard food.\u2019 People are hoarding lightbulbs, folks, in this country because of the stupid idiotic lightbulb ban, but, ‘Once riots start people in cities hoard food,\u2019 and guess what? ‘It becomes dangerous for farmers to transport food.\u2019 Once there become shortages and once prices go up, then the people that grow the food and transport it, why, they become at risk for crime, which further ‘exacerbates food shortages and drives prices even higher.<\/p>\n

‘Unemployment was modestly declining and inflation was flat before the Fed\u2019s August announcement of the new stimulus, as shown above. That trend remains in place as QE2 has not significantly reduced unemployment.\u2019 This is why everybody said QE2, QE1 didn\u2019t work! ‘Well, that\u2019s because we didn\u2019t spend enough,\u2019 the old FDR, ‘You gotta spend, you gotta really, really spend, we didn\u2019t spend enough.\u2019 Obama\u2019s new budget, trillions and trillions of new spending, investment. So guess what\u2019s happened here? Greece, Iceland, Ireland, Spain — Spain\u2019s unemployment is at 20%. ‘QE2 leveraging of worldwide commodity food prices has sent the Middle East into flames. With the price of a barrel of oil hitting $100 dollars and food prices accelerating.\u2019 Just something to throw into the mix here that the Drive-Bys are not telling you about. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: And we are back. It\u2019s El Rushbo, serving humanity, executing assigned host duties flawlessly, zero mistakes. <\/p>\n

Is it indeed the second term of Jimmy Carter coming through? By the way, on the food shortage business, this is according to CNN: The unemployment rate in Egypt is 9.7%, just like ours was the month before last. It was 9.7%. Do you know what the individual GDP for Egypt is? Ours is $48,000 a year per capita GDP. It\u2019s 48 grand a year. In Egypt $2,771 a year. They\u2019ve got 9.7% unemployment. Now, apparently Mubarak and other Egyptian leaders believed an unemployment rate of over 9% could become the new norm there, just like here without there being any serious political repercussions. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: This is from BigGovernment.com, Andrew Breitbart\u2019s site. It\u2019s a post by Chriss Street, and the title of the post: ”Fed Policy Burns Down the Middle East, Who\u2019s Next?\u2019 — Chairman of the Federal Reserve Ben Bernanke launched a second round of Quantitative Easing (QE2) in October, following over a year of growth in the […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nEconomics of the Egypt Uprising - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2011\/01\/31\/economics_of_the_egypt_uprising\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Economics of the Egypt Uprising - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: This is from BigGovernment.com, Andrew Breitbart\u2019s site. 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