Bulgarian Bread Riots

(Updated: Fri Nov 30 05:49:41 CST 2007)
(Conspiracy Nation, 11/27/07)
-- In Bulgaria, an anti-monopoly commission is investigating a possible bread producers conspiracy increasing the price of bread.

In the West African haven of Senegal, riots have swept across Senegal's capital Dakar. Rising prices of rice and bread, and a perception that the government is building luxury hotels and highways while ignoring the poor, meant the trouble quickly spread. ("Riots betray unease in W.Africa haven Senegal," by Nick Tattersall and Diadie Ba. Reuters, Nov. 22, 2007)

In Washington, DC, at the Bread For The City charity, a mini-riot seemed imminent when Turkeys ran low. One woman reportedly said, "The lady says there are no turkeys left, what are we going to do?" ("Plight of the Huddled Masses: A Hard Time for Thanksgiving," by Leonard Doyle. Axis of Logic, Nov. 23, 2007)

Among other causes, Doyle (op. cit.) cites "America’s obsession with energy independence from Middle East oil... The country’s farmers have brought in the greatest corn harvest since the Second World War, but their surpluses which once were bought by the government and sent to food banks are no longer available. Instead the corn is turned into heavily subsidised ethanol and less land is available to grow food."

This ethanol idiocy has been previously reported by Conspiracy Nation. In "Grocery Prices Don't Count" (http://www.shout.net/~bigred/Groceries.html), food price rises, not counted as inflation by the "Federal" Reserve, was examined. "Rising demand for ethanol has driven up the price of corn. The price for a gallon of milk is up 21 percent. Orange juice costs 31 percent more."

The cost of ethanol also involves a gouging of taxpayers, since it is government subsidized. Commenting on the corn-based ethanol industry, Congressman Henry Waxman complained the “corn lobby” is enriched. (“Ethanol a sticking point in energy bill”, by Richard Simons. L.A. Times, Nov. 28, 2007)

Doubts are mounting about the “ethanol craze”, summarizes the Wall Street Journal. (“Ethanol Craze Cools As Doubts Multiply,” by Lauren Etter. Nov. 28, 2007). Which is more important? Feeding cars or feeding people?? To ethanol aficionados, making more bucks is the bottom line.

The energy balance for ethanol is a pitiful 1.3 to 1, “meaning that corn-based ethanol produces barely more energy than is consumed to make it.” (ibid.) The Kapitalism situation in the United States, wrongly called "Capitalism," appears complicit in corn price rises, up 58 percent this year. Congress persons from heavy corn producing states get through special "pork" deals. The government actually mandates that less food be produced, so that corn can be diverted into ethanol. Archer-Daniels Midland profits soar, thanks to the grotesque Kapitalist symbiosis between politicians and big business.

In America, someone once said, we have socialism for the rich and "the great free market" for the rest of us. There is some truth to this.

"Socialism for the rich" may be evident in an unprecedented injection of billions of dollars into the money supply. Monetarist theory means more cash printed causes the dollar to decline in value, in turn causing groceries to cost more. "In a highly unusual move, the Federal Reserve Bank of New York said yesterday that it was putting an additional $8bn into the financial system through 43-day loans, money that won't have to be paid back until 10 January. The duration of the loans is substantially longer than that in normal market operations by the Fed." ("Fed pumps $8bn into market to head off new crunch," by Stephen Foley. Independent (U.K.), Nov. 27, 2007). In a nutshell, this can be seen as putting Wall Street's troubles onto the backs of average Americans: they pay more for groceries because Wall Street screwed up and "must be bailed out".

Besides ethanol, the stock market is being subsidized. The “Fed” $8 billion injection buoyed averages on Monday. Billions of dollars funneled into Citigroup by Abu Dhabi subsidized Tuesday's rally. A perceived future rate cut by the “Fed” sent the Dow soaring on Wednesday. All this suggests desperation, not prosperity. Printing gobs of paper won't make us rich. But meanwhile, watch those food prices inflate.

Jack planted magic beans (e-z credit) and a beanstalk (stock market) grew high into the sky. The giant ("Federal" Reserve) saw reality endangering the beanstalk. Roared the giant, "Fee, fie, foe, fum. I smell the blood of a working man. Be he live or be he dead, I'll grind his bones (tax, inflate) to make my bread." (See also, "Jack and the Beanstalk, Exposed," http://www.shout.net/~bigred/Beanstalk.html)

-------
Conspiracy Nation
http://www.shout.net/~bigred/cn.html