Wednesday, August 06, 2014

The world is being run by lunatics.

Russia to block U.S. agricultural imports.

When I first read this story I kinda snickered to myself. Good luck with all of that, I said to myself. I'm fairly confident Russia can't grow much. And it takes a couple of years to increase your livestock. This is going to hurt them way more than it is going to hurt us. Their people are going to starve!

As I thought about it more though - this is the scenario that causes those crazy hyperinflation periods in history to occur. If it does indeed happen - too much money will be chasing to few goods and services. Enter - hyperinflation. And Putin knows it because he's already "undertaking measures to guard against quick price hikes".

If that doesn't have hyperinflation written all over it - I don't know what does. We will see what happens to his approval rating when people are freaking out they can't get food. It's the one thing people universally get surly about.

While the whole Russia situation is pretty unbelievable -  I think it's healthy for the younger generation to witness what soft socialism turns into eventually when they run out of other peoples money. Hopefully they will learn before we hit that phase.

Although to be fair, it is pretty hard it is pretty hard to tip a large economy like ours into hyperinflation. But President Money Bags has a couple of years yet till kill industry.

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