Thursday, May 22, 2008

Do you know why you are paying ridiculous price for your rice, wheat and other essential stuff?

A hedge fund manager speaking before the American Senate yesterday confirmed our biggest nightmare. The recent food price escalation has nothing to do with commodity supply/demand mismatch! We were told that commodity index speculators stockpiled enough commodity futures to put us, ordinary citizens, through months and years of living with obscenely inflated food prices if the right remedy is not being put into action soon! I hope our government is reading this and doing something about it...

(Portion of) the report: Think about it this way: If Wall Street concocted a scheme whereby investors bought large amounts of pharmaceutical drugs and medical devices in order to profit from the resulting increase in prices, making these essential items unaffordable to sick and dying people, society would be justly outraged.

Why is there not outrage over the fact that Americans (read World citizens) must pay drastically more to feed their families, fuel their cars, and heat their homes? Index Speculators provide no benefit to the futures markets and they inflict a tremendous cost upon society. Individually, these participants are not acting with malicious intent; collectively, however, their impact reaches into the wallets of every American consumer (and us).

Is it necessary for the U.S. (read World) economy to suffer through yet another financial crisis created by new investment techniques, the consequences of which have once again been unforeseen by their Wall Street proponents?

(To relevant authorities, mail me if you want the full report)

...and to think that that our authorities are thinking of opening up our palm oil future trades to the Americans via the Chicago Mercantile Exchange...


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