“Elsewhere in the Middle East, there has already been trouble in Oman that could spark a geopolitical spike in oil and further amplify the hole the China is dug. I would caution speculating on oil at this point, however, because I suspect hoarding there as well. When the China downturn becomes glaringly apparent, there could be a commodity liquidation. The wild card would be QE3, which would result in a lethal combination of collapsing economies and severe crack up boom inflation.” — Russ Winter, Wall Street Examiner
Russ Winter has it dead on. What is causing the riots across the middle east and Northern Africa? Quantitative easing. Rising commodity prices cause the price of food to rise. Poor people can no longer afford to eat. So they riot, but the underlying cause is inflation caused by central banking, but who owns the central banking cartel?.
Indeed, In countries with relatively high standards of living and deflating housing and credit bubbles, that has led to heated but controlled social strife and political rhetoric. However, for those living in places without social safety nets, without political freedoms, and who are more exposed to the rise in price of energy and basic foodstuffs, the situation grows less and less tolerable. Thus we are seeing the effects in places like Egypt, Tunisia, China. All places where we’re seeing riots.
Caught in the middle are countries like Tunisia and Egypt, and perhaps others in North Africa and Middle East. They have caught the revolution bug after decades of autocratic rule, the persistence of high unemployment, and inflation now, and increasingly, a population of young techies who are sick of their lives and are using social networks to organize demonstrations and riots.