Comments on: UN: Food crisis now an emergency http://sustento.org.nz/un-food-crisis-now-an-emergency/ Sun, 11 Mar 2012 22:07:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jamesey http://sustento.org.nz/un-food-crisis-now-an-emergency/comment-page-1/#comment-254 Jamesey Tue, 15 Apr 2008 23:23:55 +0000 http://sustento.org.nz/un-food-crisis-now-an-emergency/#comment-254 I don't think the record high prices for food is unrelated to the unprecedented expansion of the global money supply after the Nixon took the US off the gold standard and money shifted from financial instruments into the commodity markets. Its a misconception that money as well as value gets destroyed in a economic "correction", because when someone buys a financial instrument (bond, shares etc) buyers no longer have money, because they've given it to the seller. So a certain amount of money that was hithero invested in debt instruments has now shifted into the commodities markets (oil, gold, agriculture). "He said he had a short position on all investment banks and is buying agricultural commodities such as cotton, wheat, coffee and sugar and was also buying the Chinese yuan and the Japanese yen. "Buy agriculture. Agriculture is one of the few places where you're going to make a fortune in the next years," Rogers said." http://www.cnbc.com/id/23588079/ According to the FAO, this harvest has broken record production levels. http://www.fao.org/docrep/010/ai465e/ai465e01.htm I believe those estimates wouldn't recognise the informal food economy in the Third World composed of small farmers. I don’t think the record high prices for food is unrelated to the unprecedented expansion of the global money supply after the Nixon took the US off the gold standard and money shifted from financial instruments into the commodity markets.

Its a misconception that money as well as value gets destroyed in a economic “correction”, because when someone buys a financial instrument (bond, shares etc) buyers no longer have money, because they’ve given it to the seller. So a certain amount of money that was hithero invested in debt instruments has now shifted into the commodities markets (oil, gold, agriculture).

“He said he had a short position on all investment banks and is buying agricultural commodities such as cotton, wheat, coffee and sugar and was also buying the Chinese yuan and the Japanese yen.

“Buy agriculture. Agriculture is one of the few places where you’re going to make a fortune in the next years,” Rogers said.”
http://www.cnbc.com/id/23588079/

According to the FAO, this harvest has broken record production levels.
http://www.fao.org/docrep/010/ai465e/ai465e01.htm

I believe those estimates wouldn’t recognise the informal food economy in the Third World composed of small farmers.

]]>