MoneyNews reports a surprising reality. Inflation -- particularly high fuel prices -- is stirring violence in the Middle East. It turns out that just like in the U.S., there's a minority of royal family members -- here we call them Exxon Mobil Corp. (NYSE: XOM) executives -- who benefit from $103 a barrel oil and a majority of regular people who actually have to pay the higher prices. This creates political problems for the ruling class.

This is different than in the U.S. Here people grumble at the gas pumps and grocery stores and pay the higher prices. In the Middle East, by contrast, strikes, demonstrations and riots are becoming commonplace as inflation causes prices for basic foods and other necessities to skyrocket from Morocco to the Persian Gulf. In Jordan, the cost of some fuels spiked 76% overnight after the government removed almost all fuel subsidies. Rising fuel immediately doubled prices of food staples like eggs, potatoes and cucumbers.

How would you react if instead of paying $3.30 for a gallon of gas this week, you had to pay $5.80 next week? Such price increases sparked violence in the Middle East. Protests over the cost of bread culminated in violence in Yemen, where 12 protesters were killed; a confrontation between Lebanese Army soldiers and Shiite protesters triggered by rising bread prices killed seven more. 34 Moroccans are in prison for taking part in riots over food prices and even tightly controlled Jordan has seen nonviolent demonstrations and strikes.

Continue reading 76% overnight consumer price increases stir violence in the Middle East

76% overnight consumer price increases stir violence in the Middle East originally appeared on BloggingStocks on Fri, 29 Feb 2008 10:50:00 EST. Please see our terms for use of feeds.