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redneck
1000+ Penny Miser Member
1273 Posts |
 Posted - 07/29/2008 : 07:21:04
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In the words of Henry Kissinger:
"Control oil and you control nations;
control food and you control the people."
Monday, July 28, 2008
Speculators Trying to Buy Control of Food Supply
According to the New York Times, Financial Times, and others, hedge funds and other investors are buying up farms, farmland, fertilizer, grain elevators, shipping equipment and other necessities for producing food.
Given the meltdown in the housing and financial sectors and the weakness in the U.S. economy, large investors figure that everyone has to eat, and so investing in food production is a sure thing.
That means that speculators will drive up food prices.
As Jim Hightower puts it:
"By 'owning structure,' they mean centralizing control of food in the hands of financial manipulators who have only one crop in mind: fat profits.
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Price? Aha! That’s what consolidation of farms and storage facilities is all about. If you can lock down production and stockpile the supply – you can control price. If corn prices are lower than what investors want them to be, simply store the corn and force prices up. Or, if corn prices are down in the U.S., ship it to Japan or wherever else might be more profitable. And if these distortments cause a food crash? Hey, the speculators will already have sucked out billions in profits, and they will just move to the next hot investment.
Hedge funds bring nothing but greed and grief to the farm economy and our food supply, and they should be banned from 'owning structure.'"
Hightower may be right: we should demand that Congress prevent speculators from buying up one of the main necessities.
(end)
Another notch in the Globalists belt...
Another nail in the coffin of Humanity...
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Edited by - redneck on 07/29/2008 07:25:58 |
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fb101
Administrator
USA
2856 Posts |
Posted - 07/29/2008 : 13:19:26
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| Or if corn prices are too low, find some Jack... to suggest we turn it into ethanol to jack up out already too high fuel prices. |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 07/29/2008 : 15:04:21
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I am not sure investing in food is such a great deal.
1. A lot of the world can't afford anything other than cheap stables like rice. The increase of price will just price them out. There is a limit to what they can pay.
2. When you move into other areas like corn, beef, pork, and ect... you have a huge market and people have lots of options to replace certain goods. You buy up all the beef, then they eat pork or chicken.
3. You have storage cost involved too. Oil doesn't really go bad. A lot of food does or it is expensive to store.
I am not saying you can't buy XXX futures and roll them, but taking control of the area isn't going to happen. I am not sure investors really had much of affect on oil. For every long contract in the futures market... there is someone short that contract. If someone isn't hedging future cost or production, then they are just gambling on the price. Gambling can be profitable if done correctly (counting cards at BJ, poker, and etc) but I don't know if I would call it investing.
You have to have big bucks to invest in futures in any size. Most have daily settlement of gains and losses to limit someone defaulting on a contract. I really don't think think hedge funds and pension funds are the reason for the increase in oil. It isn't like oil, hedge funds, pension funds, and the futures market are new things. If the increase is just investment demand, then the price will go back down. Investment demand can't keep the price up forever.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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Control of Food Supply
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