END FED: Goldman Sachs To Blame For Global Food-Oil Price Crisis; Speculators Outnumber Hedgers
Sign in to YouTube
Sign in to YouTube
Sign in to YouTube
Uploaded on Feb 25, 2011
How To Go To Heaven: http://www.jesus-is-savior.com/how_to...
Goldman to blame for global food crisis
Published: 11 February, 2011, 01:09
Edited: 11 February, 2011, 10:23
The world is in the midst of a second global food crisis in only three years, pushing prices up, adding to the ongoing protests in Tunisia, Egypt, and elsewhere in the Middle East.
Globally, food prices set a new record in January dues to large increases in the prices of corn, sugar grains and oil.
Many argue there are direct links between Wall Street, the sale of food futures, and the printing of money by the Federal Reserve is printing leading to inflation worldwide.
Skyrocketing food prices directly impact everyone on the planet, but have harsher affects of those in poorer regions where most of one's income must be spend on food alone.
As the recession and unemployment continue and the US wage gap in grows, many feel the food crisis in America could worsen, potentially brining about civil unrest.
Frederick Kaufman, a contributing editor to Harper's Magazine who has written extensively on the topic explained market speculation created a food bobble, forcing the crisis and starving millions.
Kaufman explained that in 1991 Goldman Sacks restructured commodities market by instituting speculation on food futures.
"This was a new kind of investment that was made for people that wanted to put a lot of money into commodities and just let it sit there for a long time and let it grow," he explained.
Previously commodities markets operated under a system of physical speculators and hedgers who operated based on seasons as food products changes.
However, Goldman Sacks created a structure where they continued to buy the product out of seas, based on futures as opposed to conditions.
"If the price of wheat went up in the past, people would sell at that point, Goldman would continue to buy," Frederick said.
At first the system worked, but around 2003 to 2005 a great deal of money began to pump into the long term futures, which lead to speculators outnumbering physical speculators 4 to 1 in these markets, leading to skyrocketing prices.
The increase in 2008 sparked unrest in Haiti, Egypt and elsewhere, drawing many similarities to unrest that is ongoing currently in Egypt and maybe a piece to the overall puzzle.
There were regulations in place intended to prevent these issues from occurring, however during periods of deregulations banks gained the ability to take huge stakes in commodities that was previously illegal.
"The markets are now being controlled by imaginary wheat; imaginary wheat being bought and sold by financial giants is controlling the price of real wheat," Frederick explained. "We are seeing issues in the world now where there are constraints on supply."
Supply and demand issues, combined with the futures trading and a recession economy where investors are fleeing to save commodity investments to results are higher prices and scarcity.
The people of the world continue to suffer and the large banks and financial institutions win, he said.
Jordan Syria "Saudi Arabia" Sudan Algeria Morocco
Standard YouTube License
- 7:07 Senate Hearing: Lloyd Blankfein vs. Sen. Levin ; Goldman Sachsby R. E. HeubelFeatured 65,530
- 17:09 Charlie Rose Interviews Charles Ferguson on his documentary 'Inside Job'by tp1murray 99,050 views
- 9:54 END FED: Wall Street Is Behind High Food-Oil Prices That Caused Arab Instability Plus Weak Dollarby VexZeez 4,433 views
- 8:22 Why Keep Paying The Banks?by enslavetherich 2,439 views
- 13:48 Ron Paul on Libya and Saudi Arabiaby RonPaul2008dotcom 14,221 views
- 4:02 Total Turm-Oil: 'Drill' trending word in USby RussiaToday 5,971 views
- 9:03 On the Edge with Max Keiser-Global insurrection-02-25-2011-(Part3)by Press TV 18,410 views
- 3:08 Speculators Responsible for High Oil Procesby Matt Cota 331 views
- 7:08 The Day the Dollar Diedby National Inflation Association 2,200,443 views
- 6:36 On the Edge with Max Keiser-Global insurrection-02-25-2011-(Part2)by PressTVGlobalNews 18,980 views
- 4:53 Gas Prices Up Due to Wall Street Speculation, Not Supply & Demandby David Pakman Show 1,369 views
- 2:44 END FED: Financial Institutions That Created The Financial Collapse Now Trade Staple Food! Death?by VexZeez 1,060 views
- 9:10 Inside Goldman Sachs, Record Profitsby Making Sen$e in the Classroom 904 views
- 7:24 END FED: Keiser Explains How Fed-Banks Create Revolutions & Genocide; Speculation, Food-Oil Pricesby New Day 2,950 views
- 4:11 END FED: Bernanke Says Audit Fed Bill Would Make Fed Arm of Congress-Politicians, No Independenceby VexZeez 1,091 views
- 8:49 Michael Greenberger Talks Speculation In Commodity Marketsby CleanSkiesNews 641 views
- 30:00 Peter Schiff Debates Keynesian Robert Creamer on SchiffRadio.com 2-24-11 (2 of 2)by PenguinProseMedia 2,859 views
- 6:39 Oil speculation and oil pricesby intrapolitics 3,413 views
- 2:05 As Market Manipulation Drives up Gas Prices, Republicans Gut Speculation Policeby Senate Democrats 2,307 views
- 12:51 Ron Paul uncensored on $9 trillion Fed bailoutby RT America 143,161 views
- Loading more suggestions...