Sam Seder: The Food Bubble

[GoLeft TV]

Run time: 07:33 https://www.youtube.com/watch?v=w5q7BotgTxw   Posted on YouTube: August 29, 2010 By YouTube Member: golefttv Views on YouTube: 302   Posted on DU: August 30, 2010 By DU Member: GoLeft TV Views on DU: 966

 
If you think that regulation of Wall Street banks operating in the stock market is lacking, then you probably haven’t seen what’s happening in the commodities market. While just as volatile as the stock market, the commodities market rarely makes the headlines, and there are fewer rules and regulations governing it. Goldman Sachs was well aware of these facts when they decided to hedge their bets on wheat prices, causing a surge in the price that left under-developed countries around the world without food. Sam Seder talks about how Goldman pulled off this feat with Frederick Kaufman, author of the article “The Food Bubble,” featured in this month’s Harper’s magazine.

[Joanne98]

1. This is a huge story. They are running up everything having to do with food,

metals and basic materials.

Speculating up the price of wheat will drive the price of practically everything up. They don't care if they starve people to death. All they care about is money!

[bherrera]

2. This is a flawed analysis

The analysis focuses too much on the power of a few market speculators, and disregards the two main drivers: econommic growth in India and China, with huge populations demanding more and better food, and the role of biofuels subsidies in the USA and Europe, which are highly inefficient.

[daleanime]

4. "a few market speculators"....

controlling how much of the market?

[JDPriestly]

5. India and China were not specifically mentioned but floods and

other natural conditions were mentioned. I think that the analysis is fair in that there are always fluctuations in actual demand. In fact, the whole point is that Wall Street companiies cynically waited for the inevitable natural fluctuations in demand that would permit them to cash in AT THE EXPENSE OF STARVING PEOPLE AROUND THE WORLD. As the grandchild of farmers, this is absolutely sociopathic market manipulation. This sort of market strategy should be illegal.

[izquierdista]

6. No flaws in the analysis

Both of the "demands" that you cite just aren't there. Food demand from one year to the next is pretty constant and can be predicted given the population growth. Also, you have the cause and effect backwards in the biofuel price bubble. Yes, grain prices started chasing fuel prices, but that was because there was also commodity speculation blowing the roof off of oil and natural gas futures which occurred prior to the grain bubble.

Sam's guest pretty much nails the evils of unrestrained speculation. Goldman was able to construct an effective corner in the markets they were trading and ended up leaving everyone else out to dry.

[ellenfl]

3. kick for later. eom

[civilisation]

7. first we kill the bankers,. .