Risk Rap

Rapping About a World at Risk

Blog Action Day: The Power of We

 We the People, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.  Thus begins some of the opening words to the constitution of the first constitutional republic of the modern world.

Seems fair, simple and plainly spoken.  We the people ordain a constitution, a social compact, consenting to be governed in the expectant hope that domestic tranquility and the blessings of liberty for all living and future citizens will be respected and protected.  It was a revolutionary notion for its time and is still the ideal democratic republics aspire to realize and practice.  It is an idea that moves masses of people throughout the world to come together, demonstrating the collective strength of the “power of we”.  It’s very notion sets people in motion to force intractable power elites whose rule is based on custom and the vanity of tyranny to cede authority to the democratic impulses of a people’s fight for the consent to be governed.

Last years Arab Spring demonstrated that the democratic aspirations of people remain alive.  It took a massive movement of people, willingly sacrificing life and limb and the safety of loved ones to dispose of dictators and their self serving regimes.  The fall of Hosni Mubarak in Egypt and Muammar Gaddafi in Libya were startling events in the rapidity of their downfall; and as an emblematic revelation of the fragility of tyrannical rule.  It also born hope in the hearts of people living under unelected rulers that change could happen if the “power of we” was focused on the task of disposing a regime whose sole goal was self enrichment and the perpetuation of its rule.  As the conflict in Syria grinds on, the world witnesses the awful cost of the struggle against tyranny. It’s a damning condemnation of Bashar al-Assad’s vanity of power and a moving example of the price human beings are willing to pay to realize the blessings of liberty that  many citizens living in western democracies too often take for granted.

As the United States contentious presidential election comes to a close, I hope that my fellow citizens understand the dear price people are paying to have some semblance of a representative democracy.  I also hope my fellow citizens realize that the duopoly of power exercised by the ruling democratic and republican parties represent economic and political interests that run counter to the interests of the vast majority of We the People.  I hope my fellow citizens understand that the two ruling parties are a class of political elites that have governed to serve the perpetuation of their rule,  financed by an embedded plutocracy that continues to enrich itself with the complicit enabling of democratic and republican party officials.

In this election cycle, my fondest hope for America is for my fellow citizens to break the stranglehold of self serving two party rule.  We must begin to adopt the ideas of progressive third party candidates, like The Green Party.  We must elect candidates that are free from the bought shackles of favoritism and patronage. Thus remaining free to pursue a moral and ethical conscience that advocates liberty, equality of opportunity and civil rights for all citizens.  We must also prepare to engage a political movement that goes beyond the ballot box, becoming activist citizens to win a future that promotes the ecology of a balanced sustainable path of growth, peace and prosperity for all.

 risk: politics, economics, environment

 Music Selection: John Lennon, Power to the People

Blog Action Day Post: The Power of We

October 16, 2012 Posted by | Civil Rights, democracy, government, republicans, social unrest | , , , , , , , , , , | Leave a comment

Davos Dithers While Cairo Burns

Per-Gynt-in-the-Hall-of-the-Mountain-King-Dovregubbens-Hall-1913_WEBB

In the pristine air of the Swiss Alps,  the worlds power elites gather at an annual World Economic Forum in Davos Switzerland.   In this rarefied Hall of the Mountain King’s, Prime Ministers, CEOs and the esteemed emissaries of the global elite get some valuable face-time with each other to assess the world situation and figure out ways to arrange it more to their likeness.   Russian Prime Minister Medvedev  was scheduled to give the welcoming address but had to cancel because a Chechen suicide bomber blew himself up in Moscow’s busiest airport taking a couple dozen travelers with him.

Busy looking inward to protect personal interests,  the fiduciaries of global solvency stew about regulatory overreach and the added burden it creates as the ruling elites balance the demands of worldly subsistence with the perplexities of generating sufficient cash flows to cover dividend payments to shareholders.  More often than not the heft of shareholder concerns outweighs the growing immiseration of the world’s troubled masses.  The deeply held sacred dogma that enlarged prosperity for the wealthy benefits the disenfranchised is being increasingly challenged as the wealth gap rises against a backdrop of growing economic duress and political instability.

The growing movement to topple Egyptian President Hosni Mubarak illustrates the failure of a global trickle down political economy.  Mubarak has held office since Anwar Sadat’s unceremonious removal from office  is receiving urgent signals from the Egyptians that he has clearly overstayed his welcome.  For three decades, Mr. Mubarak and his military caliphate have been the recipients of generous western aid packages designed to maintain a tenuous peace with Israel.  Stitched together at Camp David in the closing days of the Carter Administration; the sibling rivalry between Abraham’s jealous children remains incendiary and its stability will be tenuous at best considering the growing role of  The Muslim Brotherhood in challenging Mubarak’s continued rule.

The United States sends Egypt $1.5 billion in military aid each year.  Its seem a small price to pay to guarantee the peace with Zion and to  underwrite a strategic ally in the volatile Arab world.  It’s also a perfect political foil to counterbalance Israel’s favored nation status.   But US aid and IMF loans have financed Mubarak’s autocracy creating deep political fissures within Egypt.  These aid programs have widened the wealth gap by limiting opportunity to a select few; abetted political disenfranchisement that encouraged social unrest,  fueling Islamic radicalism and the urgent need for democratic reforms.

The game plan followed in Egypt for the past three decades is not working.  The nature of western aid to Egypt and how it was used to benefit the military ruling elites illustrate the conundrum of the Davos Hajiis.   Aligning economic development and political empowerment of the world’s disenfranchised with the needs of the global capitalist elites has failed to deliver on its promise.  The pursuit of Mule and  Sparrow economics have engorged the elites and left the many sparrows emaciated.

When the Davos delegates leave their ski chateaus for an afternoon on the slopes, as they exit the lifts at the top of the world, it may yet still be possible to glimpse the growing crowds amassing in Tahrir Square.  It may still be possible to connect the dots of promoting the inclusive economics of reciprocity and social democracy.  The revolutionaries gathering in Liberation Square  are joining with the dispossessed to give full voice for an agenda of change.

The elites have stored up too much wealth for themselves.  The masses have remained wanting, impoverished of goods and denied liberty, fed a steady diet of repression they stoke fires in Tahrir Square signaling the time for change has arrived.

Music selection: Edvard Grieg: In the Hall of the Mountain Kings

Risk: Middle East, political stability, economic prosperity, global economy, democracy, Egypt, Hosni Mubarak, Davos, IMF, Israel, Tahrir Square, revolution, military rule, Jimmy Carter, Mule and Sparrow Economics, Camp David Accords, Medvedev, Anwar Sadat, World Economic Forum

 

 

 

January 30, 2011 Posted by | banking, corporate social responsibility, credit crisis, democracy, Egypt, history, Israel, Middle East, military, Muslim, politics, revolution, social unrest, Uncategorized | , , , , , , , , , , , , , , , , , , , | Leave a comment

Kristallnacht in America

The passage of the Health Care Reform Bill has incited an angry reaction by rightist militants.  These incensed and deeply aggrieved ill led people are self deluded uber patriots.  They believe themselves to be striking a blow for individual liberty when in fact their actions consistently undermine the central tenants of our democratic republic.   They are convinced that the new heath care legislation is  America’s decent into a fascist hell led by Il Duce Obama;  and are prepared to water the Tree of Liberty with the blood of tyrants and in some cases their own.   They spit on and hurl racist and homophobic epitaphs at those they disagree with.  Under the cover of darkness these imbecilic cowards have embarked on midnight drive-bys of the local offices of congress members who supported the legislation.  They smash windows, fire bullets and leave threatening voice messages to let the politicians  know of their anger and  resentment.  It’s an American version of a Kristallnacht.

There are some interesting parallels with Kristallnacht that goes deeper then a convenient metaphor of broken glass.  Though I don’t draw any equivalency with the severity and consequence of Kristallnacht with the rightists night of egg throwing and window smashing;  I believe similar motivational ideals triggered the emotional response of the midnight ramblers and the Nazi zealots that authored the first chapters of Hitlers Final Solution.

Indeed both are inspired and encouraged by pernicious and dangerous sycophants who are skilled practitioners in the fine art of The Big Lie. The Nazi’s were goaded into action by Joseph Goebbels; while our American Brown Shirts have Glenn Beck, Rush Limbaugh, and mainstream media giant Fox News to instigate a 24/7 anti-Obama diatribe that whips the ditto heads into anger fueled action.  Right wing politicians like Michelle Bachman, Sarah Palin, Tom Tancredo and a growing number of far right conservatives freely use the rhetoric of armed resistance to any government initiative.  They cull the support of angry Teabaggers and a growing Militia Movement that flies the Don’t Tread on Me flag.  The latter  are armed to the teeth and stand minuteman ready to exact swift retribution if you step on their toes.

Radical conservatives have waged a Rovian campaign to delegitimize the presidency of Barack Obama through red herrings like the Birther Movement.  The rightists deliberately work to confuse and frighten citizens to further their political careers and agendas.  Like Joseph Goebbels they are skilled practitioners in the use of The Big Lie.  The more outlandish the lie, and oft repeated the more believable it becomes.  Since assuming the office of President we have been harangued with negative messaging initiatives by radical conservatives.  Obama is a fascist.  Obama is a Muslim.  Obama is a socialist.  Obama is the Antichrist.  Obamacare will form death panels to conduct social triage.  FEMA is building concentration camps to inter  Teabaggers.  Obama will confiscate your guns and take away your right to bear arms.  Obama wants to address our nations school children indoctrinate them.  Don’t fill out the census because it will allow the government to better track your movements and whereabouts.  The  incessant repetition of these ideas and the complicit silence of conservative leaders to refute them has served to delegitimize the Obama presidency and undermine our nations ability to converse and form a consensus to address the deep problems of our country.

The political culture of America is a landscape of extremes.  The growing fissures are making it more difficult to form any consensus.  These fissures are exploited and exacerbated by competing media channels which define and shape political understanding and context.  A shared political vocabulary and nomenclature of understanding is increasingly undermined by words and symbology that are appropriated by political factions.  Meanings and concepts are codified to create a language and political context that is used to understand factional ideology to support a political cosmology that is understood and accepted by the faithful.  This makes dialog even more difficult if not impossible because the language of political discourse across the partisan divide translates poorly and in fact helps to solidify the meaning of otherness.   Martin Bubur’s  “I and Thou” is an instructive work on how the objectification of the other leads to  their dehumanization.  Once a person is dehumanized,  any action taken against them can be  justified.  Those on the other side of the isle are now the “other” who you cannot trust.  We wrote about McCain’s pejorative use of “That One” to describe Obama during one of their presidential election debates.  The “other” becomes  an actual suspect lying  at the root of the problem confronting the aggrieved.  The problem of incompatible dialects and protracted partisanship eventually leads to the dehumanization of the other.  It doesn’t take much of  a leap to believe that the elimination or suppression of the other will lead to a final solution to our country’s problem.

Kristallnacht was a watershed event in the history of German Nazism.  In response to an assassination of a German diplomat in Paris the Nazi’s initiated a wave of terror against German Jews.  On orders from Nazi zealot and the party’s Chief of Propaganda, Joseph Goebbels,  a wave of hate fueled attacks were unleashed by gangs of SS , Hitler Youth and Gestapo thugs to attack and destroy the property of Jews.   The pogrom resulted in the deaths of 91 Jews and 25,000 to 30,000 were arrested and placed in concentration camps.  267 synagogues were destroyed, and thousands of homes and businesses were ransacked.  The broken glass that littered the streets from ransacked shops is how Kristallnacht (Chrystal Night) derives its ignominious name. Kristallnacht is understood to be the beginning of Hitler’s Final Solution, which lead to the Holocaust.  It is certainly one of modern civilizations most shameful and tragic events.

The howling yodelers of talk radio and the ministers of propaganda at Fox News intent on exercising their right of free speech by dehumanizing their opponents, inciting angry lemmings into vandalism,  racist diatribes and vigilante terror are stoking the flames of a bitterly divided nation that threatens to immolate our badly divided house.   More rightly this movement could be considered a Falange movement and is not without precedence in history.  Falangism advances a reactionary agenda.  Its  violent temperament is nationalist and often religious in character.  Falangism emerges in weak democracies  and are symptomatic  of a society in decline.  Falangists promise a return to the prosperity and values of the past  that are quickly dissolving in the embroiled clash of cultural, political and economic contradictions democracies find difficult to resolve.   Glenn Becks’s Brownshirts need to understand that their misguided faux patriotism leads to some very dangerous and ugly places.  Its easy to smash the glass encasing our fading constitution.  Its more difficult to come together to address what needs to be done.  I hope its not to late.  I hope Mr. Beck’s final solution is not an historical inevitability for America.

You Tube Music Video: Rolling Stones,  Sympathy for the Devil

Risk: political

March 26, 2010 Posted by | culture, democracy, government, Obama, Palin, social unrest | , , , , , , , , , , , , , , , , , , , , , , , , | 2 Comments

Livin in the USA

oakland-social-unreastDon’t quote me on this, but I seem to remember some sage advise Barton Biggs offered his high net worth clientele about the coming social disintegration due to the economic meltdown. I remember him saying “to stock up your wine cellars, get liquid with your assets and find communities to live in where enhanced security services is a chief accoutrement.” He may be on to something.

Urban tensions have exploded in Oakland California this past week over the slaying of a BART commuter at the hands of a transit policemen. The unfortunate killing of the African American youth Oscar Grant occurred on New Years eve when the BART transit police were trying to control rowdy New Years revelers. The shooting has triggered a series of violent protests that are becoming more commonplace in cities of the world.

These high profile cases of police brutality are incendiary incidents that give voice to a seething urban anguish fed by economic duress, racial tensions and cultural dislocation. The police murders of a person of color give focused voice to community discontent fueled by rising unemployment, homelessness, home foreclosures, ethnic tensions and rising impoverishment unleashing a horrific display of civil disturbances that are in turn met with brutal state suppression.

Urban social unrest is becoming more commonplace in democratic nation states. The riots in Paris and Amsterdam in 2007 and the recent unrest in Athens speak of a deep dissatisfaction of the economic and cultural disenfranchisement of urban minorities and working poor. These Euro Zone riots assume a Muslim ethnic dimension. It exemplifies the cultural dislocation of Islamic youths and the failure to integrate the large Muslim immigrant community into Old World Europe. As the recession deepens ethnic unrest and class conflict will grow. Perhaps we should take Mr. Biggs’ advise and stock up the wine cellars before it becomes to dangerous for a run to the local liquor store.

You Tube News Footage: Oakland riots


You Tube Music Video: Steve Miller Band, Livin in the USA

January 8, 2009 Posted by | cities, ethnic, Muslim, race, rock, social unrest | , , , , , , , , , , , , , | Leave a comment

To The Barricades!

Thomas Hart Benton
Mine Strike
1934

Workers in the heat of struggle throughout the history of the labor movement have often cried “to the barricades” as a last resort to defend their rights, freedoms and protect their means of living. It is a signal that the interests of labor and capital are at distinct odds with each other. When an impasse is reached and the irreconcilable requirements of both parties are unable to be resolved through negotiation, workers take direct action with slowdowns, strikes, sit ins and takeovers as the only means to exert their will and protect their interest.

So it is with great sympathy that we hold up the workers and picketers at Republic Window and Door in Chicago. Last week the management of Republic informed their workers that due to the slowdown in the housing market they are going out of business and that the company cannot pay the workers any separation compensation due to lack of funds. In a radical action to protect separation benefits owed to them in accordance with federal law, Worker Adjustment and Retraining Act (WARN); workers have taken over the factory in a desperate attempt to secure a just separation settlement. The workers, many of Hispanic decent and members of the United Electrical Union, have barricaded themselves inside the factory in a kind of Battle of the Alamo of the US labor movement.

The timing and circumstances of Republic’s closing is unfortunate and is symptomatic of the country’s severe economic malaise. Ironically the projected severity of the economic downturn facing the US economy is the direct result of the deconstruction and dismantling of America’s manufacturing base. The rationalization of the US manufacturers that began in the 1980’s with Micheal Milken and Drexel Burnham Lambert accompanied by a storied SWAT Team of vulture capitalists had to battle and undermine the political clout and power of labor unions to achieve their objectives. The erosion of union power accelerated as membership dropped and the demonization of unions became a political tool used by the Republican’s to attack their rivals in the pro labor Democratic Party. As Republican trickle down economics grew in ascendancy quality of life, wages, heath care and employment benefits for working people have fallen precipitously. The political attacks against unions continue as a large lobbying effort is underway to defeat The Employees Free Choice Act. Without strong unions working people are at risk and remain extremely vulnerable to the debilitating effects of the current recession.

Historically, Chicago has played a central role in the formation and development of the US labor movement. Chicago’s Haymarket Square Riots is a seminal event that propelled the development of the organized labor movement. It was critical to the rise of the American Federation of Labor and endowing unions with the political power to secure the 8 hour working day, better working conditions, decent wage scales and employment benefits. Today as the workers at Republic have walled themselves inside their perishing workplace in an attempt to be rightfully compensated for their exertions and service, Republics management must find a way to meet its commitment by respecting the dignity and economic well being of its former employees. Lets hope that this struggle going on in Chicago represents an awakening for Americas new found respect and support of unions and hopefully not its death knell.

Our prayers and best wishes are with the Republic workers; as they stand in defense for the rights and well being of all American workers. May God continue to bless them with dignity and may the unity of disenfranchised workers serve to assure a prosperity for themselves, their families, and our nation. For truly as it is written in the Gospel of Luke, the laborer is worthy of his pay.

May the Lord continue to bless them and keep them.

You Tube Video: Rachel Maddow, Republic Window and Doors

You Tube Music Video: Pete Seeger, Which Side Are You On?

You Tube music Video: Natalie Merchant, Which Side Are You On?

Risk: labor unions, recession, social safety net, manufacturing, WARN,


December 9, 2008 Posted by | folk, manufacturing, social unrest, unions | , , , , , , , , , , , , , , | Leave a comment

Weedpatch

Yesterday’s post on the theme on the New American Diaspora neglected to mention the impact of mortgage foreclosures.

Diaspora is a Greek word that means “to scatter.” Yesterday we speculated on how high energy prices and climate change may impact the changing demographics and population shifts in the urban centers and rural areas of America. Today we offer a brief comment on mortgage foreclosure and its potential impact on the New American Diaspora.

Due to the excesses of the credit marketing orgy and the implosion of sub-prime lending market, it is estimated that during 2007 1.5 million mortgages were in foreclosure. The Department of Treasury estimates that during 2008 approximately 2.5 million mortgages will enter foreclosure and subsequent quarters will experience 800,000 home foreclosure run rate. That’s a staggering amount of potentially displaced people.

It is heartening to see that our governmental institutions are moving to address this growing problem. The financial and political impact on state and local governments and the economies of local communities can be severe.  Over 4 million mortgage foreclosures have been or are forecast to occur. If we surmise that each mortgage is tied to a house that shelters 3 people we are speaking about 12 million people who are being put out of their homes. This does not translate into 12 million newly homeless people. Many former homeowners will return to renting their dwellings. But the pressure that this will put on affordable housing markets ability to absorb this dramatic spike in demand will drive affordable  housing prices up and will contribute to a rise in homelessness.

State and local governments rely heavily on property tax receipts. As defaults grow the level of tax receipts will recede forcing state governments to raise taxes and cut back on critical services. State governments are moving to address this problem. The Federal government is also trying to develop market solutions to keep people in their homes. If market solutions fail the government may have to dust off some New Deal Programs to address this mass dislocation.

The California town of Weedpatch was created by the Farm Security Administration in 1935 as a settlement community for the displaced Dust Bowl dirt farmers. Lets work to create a solution to this problem so we don’t have to build these camps.

Lets listen to this Woody Guthrie Dust Bowl classic, I’m Going Down the Road Feeling Bad.

Risk: homelessness, local government, tax ratables, social programs, market solutions

July 10, 2008 Posted by | Bush, credit crisis, homelessness, recession, social unrest | , , , , , , , | Leave a comment

A New American Diaspora

Ever since our ancient ancestors first walked out of the Great Rift Valley to populate other regions of the globe our species has been on the move. Critical turning points in world history have always been marked with dramatic shifts in population and settlement of people. The Phonetians, Greeks, Polynesians, Vikings, Crusaders, Mongols, Hebrews and the Pre-Columbian Asians who crossed the Baring Strait land bridge are storied migrations, explorations and conquests that shaped civilization and continue to inform our understanding of world history.

American history is full of examples of dramatic population shifts. The arrival of European settlers, the introduction of African’s through the slave trade, the westward expansion of America, the Trail of Tears of Native American resettlements onto reservations, the arrival of Chinese laborers in San Francisco, the second wave of Ellis Island European immigrants, the migration of African Americans to northern cities at the beginning of the 20th century, the Dust Bowl migrations of Midwest farmers and the most recent immigration of Hispanics, Caribbean, Middle and Far Eastern people are dramatic examples from our country’s short history of major population shifts.

Global climate change and the economic impact of high energy prices are causing dramatic shifts and migrations of people throughout the world. The United States will not be immune from its affects. Hurricane Katrina depopulated the City of New Orleans and is altering our propensity to build houses on barrier islands. The floods along the Mississippi River Valley, drought in the Southwestern states and the devastating wildfires in California and other western states are climate influenced events that are forcing populations to resettle to more eco-friendly locations. History may be rereading and we may be witnessing a reenactment of John Steinbeck’s great historical fiction masterwork, The Grapes of Wrath .

The permanent rise in energy prices will reverse the urban exodus of the middle class to suburbia. As the car culture took hold of post war America, cheap gas, and vast highway systems encouraged the development of suburbs. Now that gas prices are skyrocketing and mass transit infrastructure continues to be neglected the middle class will migrate back to the city to live in close proximity to resources, jobs and services. Urban exclusivity will be protected by congestion pricing programs, the absence of affordable housing and high cost of services. This will create a dramatic demographic shift in the America as lower income people are forced out of the city creating a growing population of rural poor. Social service reservations may need to be created to assure subsistence for the rural poor.

The stated intention of airlines to restrict and eliminate service to second tier cities will tend to isolate these communities and create high concentrations of the economically disadvantaged. This will create tremendous strain on local city and state government’s ability to provide basic services to the new classes of disenfranchised people. High energy prices and the changing American topology due to climate change pose a multitude of risks to the fiscal viability of local governments.

Let’s close with Bruce Springsteen’s Ghost of Tom Joad.

Risk: demographic, tax base, urban, rural, climate change, population,

July 9, 2008 Posted by | bankruptsy, credit crisis, environment, folk, homelessness, social unrest | , , , , , , , , , , , , | Leave a comment

Seven Lost Years

The World Bank ended its spring conference with a clarion call for world leaders to take urgent action to deal with the “Rice Crisis”; the dramatic rise in food prices and the political instability it is causing.

World Bank President, Robert B. Zoellick called for a “New Deal on Global Food Policy.” Zoellick is urging governments to provide $500 million in emergency funding to deal with the Rice Crisis. Failure to find a solution to the problem will result in “seven lost years” in our fight against world hunger. The prospect of New Dealers emerging from Bush’s inner circle is a bit ironic and may cause the Neo Cons to express dismay, but the urgent need to act is clear. The Rice Crisis is the greatest threat to global stability. Aligning and mustering the resources of the G7 Group, United Nations, IMF and World Bank to deal with the Rice Crisis is the best use of their institutional power.

Neo Cons can find some comfort in Zoellick’s proposition that funding to achieve forgotten Millennium Development Goals be provided by Sovereign Wealth Funds (SWF). Governments won’t have to add to the burden of future taxpayers by employing a Keynesian deficit spending strategy to fund their commitment to stabilizing the global production and distribution of food.

The mammoth SWFs are becoming the lender of last resort as they again are asked to ride to the rescue to salve the world’s economic wounds. It’s almost like a form of world communism has emerged to support the stability of state capitalism practiced by the developed world. A portion of the surplus value accumulated in the SWFs are now being returned to maintain fluid markets and political stability.

Risk: Political; Social; Economic; Inflation

You Tube Video: Hunger Awareness Video

April 16, 2008 Posted by | Millennium Development Goals, social unrest, sovereign wealth funds | , , , , , , | Leave a comment

On Your Marx

The Original Marxist

I can’t help but think that we are again in the midst of a new kind of enclosure movement.

Karl Marx in his classic tome on capitalist economics, Das Kapital, wrote extensively on the enclosure movement in England and the role it played on the formation of the urban proletarian class.

The enclosure movement forced rural peasantry from agricultural based production. This was done because the owners of land could receive a better return on the land by raising sheep. Sheep was in high demand because wool was a crucial commodity necessary for the burgeoning textile industry in Manchester.

The enclosure movement of the 16th century is analogous to the conversion of human food producing arable land to an agriculture that supports the production of biofuels and animal husbandry.

The rise in the price of basic commodities is also being exacerbated by the Federal Reserves policy to cut interest rates to pump liquidity into ailing credit markets.

This is creating a type of economic perfect storm for the under and lesser developed partners in the global economy. The rice riots will continue until a concerted effort is made to fight inflation and curb efforts to use bio fuels to supplement our fossil fuel based economies.

This is also another political justification for an accelerated program for the construction of nuclear power plants in the US. Site selection for the construction of a new atomic energy plant may soon be under consideration for a town near you.

You Tube Music Video: Judy Garland, How Ya Keep Em Down on the Farm

Risk: Inflation, Commodity, Environmental, Political, Social

April 14, 2008 Posted by | inflation, social unrest | , , , , , , , , , | Leave a comment

The Price of Rice in Haiti

Rice Riots in Haiti

Another entry in our ongoing series about the rise in rice prices.

Today we were confronted with images of food riots in Port Au Prince arguably the most impoverished city in the western hemisphere. UN Peacekeeping forces were straining to maintain the rule of law and prevent a total collapse of civil order.

Its startling to consider that people in the underdeveloped world pay up to 80% of their incomes for a subsistence ration of food. Here in the United States we spend approximately 10% of our income on food. An interesting metric in how to measure the spread of the difference between the developed and underdeveloped world.

I can’t help but think of the butterfly effect.

It goes something like if a butterfly flaps its wings in Beijing in May it will produce a Hurricane off the Outerbanks in August.

Haiti may be this years butterfly. It may yet remind us of how connected our world is to the seemingly disconnected events and risk factors in the global community.

Risk: inflation, commodities, political, moral

You Tube Video: Port-Au-Prince

April 12, 2008 Posted by | inflation, social unrest | , , , , , , , | Leave a comment