The Fed, Food Riots, and China

Originally published elsewhere by me on 1/21/2011

Is Federal Reserve policy having unintended consequences around the world?

As you know, civil unrest in Tunisia has brought down the government. You are probably aware that Egypt is also teetering on the brink. President Mubarak’s son, Gamal Mubarak, and his son family have fled to London. Today I read a rumor that President Mubarak’s wife, Suzanne Mubarak, has also fled to London. Our Secretary of State, Hillary Clinton, said Tuesday:

Our assessment is that the Egyptian government is stable and is looking for ways to respond to the legitimate needs and interests of the Egyptian people.

I’m not seeing the stability.