Thirty per cent of these index funds are invested in food commodities. Between 2003 to 2008, commodity index speculation increased by 1,900 per cent from an estimated $13 billion to $260 billion.
It is predominantly a result of speculation. The price rise is not just a result of supply and demand. The financial deregulation that destabilised the world’s financial system is now destabilising the world food system.
When speculation drives up prices, the rich investors get richer and the poor starve. Barclays, Goldman Sachs, JP Morgan are all playing on the global food casino.Ī 2008 advertisement of Deutsche Bank stated, “Do you enjoy rising prices? Everybody talks about commodities - with the Agriculture Euro Fund you can benefit from the increase in the value of the seven most important agricultural commodities.” Speculation pushed up prices and high prices pushed an additional 100 million to hunger. While real production did not increase between 2005-2007, commodity speculation in food increased 160 per cent. Putting food on the global financial casino is a design for hunger.Īfter the US subprime crisis and the Wall Street crash, investors rushed to commodity markets, especially oil and agricultural commodities. Rather speculation and profits are designing food production and distribution. Yet, it is not the culture or human rights that are shaping today’s dominant food economy. Growing food, processing, transforming and distributing it involves 70 per cent of humanity.
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