Monday, Apr 28, 2008
global food crisis is a monetary phenomenon
Market Oracle: US Fed To Blame for Global Food Crisis
The US has been gaming the system for decades; sucking up two-thirds of the world's capital to expand its cache of Cadillac Escalades and flat-screen TVs; giving nothing back in return except mortgage-backed junk, cluster bombs, and crummy green paper. Nothing changes; it only gets worse. But this is different. The world is now facing the very real prospect of "completely avoidable" famine because twelve doddering old banksters at the Federal Reserve would rather bailout their sketchy friends and preserve their spot at the top of the economic food-chain then save the lives of starving women and children.
Posted by sold 2 rent 1 @ 09:30 AM (564 views) Add Comment
12 Comments
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1. malct said...
USAID = United States Agency for International Development
says it all
2. hpwatcher said...
great description, sold 2 rent 1
3. it_is_going_with_a_bang said...
Expect another large drop from the Fed to show they really couldn't give a dam.
The unfortunate thing is that most people don't have a grasp on this kind of thing.
Ask most people of the street if they understand this situation and they will just say no and get on with their lives.
In an election year in the US don't expect anything other than short term fixes and personal gain policies.
I can't say it's much better here either.
4. planning4acrash said...
Yup. General inflation is a monetary issue. Too much cash in the system, in the hands of speculators rather than consumers.
5. sold 2 rent 1 said...
it_is_going_with_a_bang,
"The unfortunate thing is that most people don't have a grasp on this kind of thing."
True but will this always be the case.
History says the US in an election year will pull another rabbit out of the hat and get away with this con for another year or 2.
The problem with extrapolating past trends to infinity is that at some point the trend changes.
Everyone knows the trend will change but always thinks it will be tomorrow and not today
I think the current food crisis will escalate and we are nearer to a tipping point for change than you think.
6. mrmickey said...
And the main stream press pump out the same old rubbish about global warming causing food shortages it's laughable.
7. cornishman said...
bio fuels are obviously helping to distort the food prices at the moment (although much of the distortion is caused by money looking for an inflation hedge). So what does Gordon Brown do?
Does he decide not to use biofuels. No. He decides to have a review. Talk about dithering...
8. bystander said...
"Too much cash in the system, in the hands of speculators rather than consumers."
exactly right P4C. The billions being used to re-liquify the mortgage markets etc. to aid the common man, have been syphoned into hard and soft commodities, oil, rice, gold, steel, wheat etc, wonder how many billions are being speculatively invested into clouds and glaciers in preparation for the world wide drought, according to the global warming strategists. Absolutely none of it is going where the Fed, BoE and ECB say they intended it to go, and all its done is protect the profit margins of the profligate and corrupt bankers and their investors, at the expense, and this time literally, of millions, if not billions of the worlds poorest, who struggle by, per year, on vastly less than a wall street banker would spend on a bottle of wine to go with his/ her lunchtime jolly (I mean business lunch). Oil, rice, wheat prices mean nothing, but profit to the speculators like Buffet etc. but they mean life or death for many millions/billions of their fellow men, women, children. Hell, if it exists is too good for these parasites.
9. stillthinking said...
How is it safe for the wealthy to buy anything in an over-leveraged system? This is an emergent cornering of the market for food but ignores the fact that there will always be government intervention i.e. the food exports will get blocked. So the counter party faces higher and higher prices to genuinely deliver.
So globally this isn't really going to be an increase in the price of food, but rather a decrease in the amount of food available for -trading-. As we in the UK are dependant on tradable food we get stuck, but the US won't, and neither will any net exporters. The excess cash in the system must be concentrating on smaller and smaller amounts of available food. Or put it another way, this is international trade breaking down.
10. indiablue19 said...
No shortage of food? Who says so? Why are the fields all around us that were corn, wheat and hay filled with rapeseed plants for making diesel? We are in France. Maybe the US government needs to get it's tractors running and start planting corn? How convenient to make Bernanke a scapegoat for the weather, the oil crisis, and the plain stupid planning of governments worldwide.
11. indiablue19 said...
stillthinking......maybe time to promote a few crops on all those gaming and quail shooting estates then? Substitute a bit of wheat for hunting parties? A vast amount of land in the UK is owned by just a few you know, and hasn't been reclaimed by the sheeple since the Highland Clearances. Maybe a little de-monoplisation to do as well closer to home rather than worrying too much on Buffet who is past reach.
12. planning4acrash said...
Trading is often as useless as speculation. I heard that we export as much milk as we import. Why? So speculators can hedge inflation and currency plus benefit from speculation. All totally unproductive. Bring on the 100% gold standard!