Today saw some serious dislocations beginning to develop in the markets. From oil--up over eight percent--to commodities which are taking a huge hit, the markets are in turmoil.
Libya is the world's #9 supplier of oil, and pretty much all of the 1.5 million barrels per day production have been shut down. If the riots spill over into Saudi Arabia, $4 per gallon gas will seem cheap.
This is all happening as a direct result of the Federal Reserve's zero interest rate policy (ZIRP). No, poor peasant, not you. The criminal banks get to borrow free money from the Fed and invest it in whatever speculative bet they think will give them the best return (bonuses) on their free money. The rocket ride we've experienced in the stock market and commodities is a direct result of this policy.
The U.S. doesn't export anything anymore--except inflation. You see, because the U.S. Dollar is the world's reserve currency, many nations peg their own currencies to the dollar because of the relative stability of our currency. Bernanke's money printing scheme through quantitative easing has caused those nation's inflation to skyrocket, leading directly to starvation and rioting in Middle Eastern nations. This will soon be followed up with Asia as rice prices have gone through the roof.
The markets seem to have begun to wake up to suicidal Ben's ways, and are starting to call their bets. One way or another, things are going to begin to get ugly not only in far away Middle Eastern nations, but right here in the good 'ol USA. Are you ready?
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