The soaring oil and food prices are simply the tax burden imposed by the Fed's massive bailout of Wall Street investment banks and mortgage lenders. As the Fed creates money to buy bad mortgages and other worthless securities held by banks and brokerage firms, the value of the savings and wages of everyone on Main Street will continue to fall. Moreover, the various housing bills and stimulus packages now passing through Congress will significantly add to the eventual staggering price tag. The cost, in the form of accelerating energy and food prices, will be borne by ordinary citizens throughout the world. Had the Fed not succumbed to political pressures and followed prudent monetary policies, oil and food prices would have remained relatively stable. By ignoring the contributions of monetary policy to the food crisis at the summit, and with the monetary brake removed, oil and food prices will continue to race to dangerously higher and higher levels, with attendant recessionary effects and aggravation of malnutrition on the global level.
The cost, in the form of accelerating energy and food prices, will be borne by ordinary citizens throughout the world. Had the Fed not succumbed to political pressures and followed prudent monetary policies, oil and food prices would have remained relatively stable. By ignoring the contributions of monetary policy to the food crisis at the summit, and with the monetary brake removed, oil and food prices will continue to race to dangerously higher and higher levels, with attendant recessionary effects and aggravation of malnutrition on the global level.
As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
