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Is The Food Bubble About to Burst?
'Another explanation for the sudden jump in grain prices is not mentioned by this Wall Street Journal writer but is suggested by other analysts. William Pfaff wrote in the April 16 International Herald Tribune:
[M]ore fundamental is the effect of speculation in food as a commodity – like oil and precious metals. It has become a haven for financial investors fleeing from paper assets tainted by subprime mortgages and other toxic credit products. The influx of buyers drives prices and makes food unaffordable for the world's poor. "Fund money flowing into agriculture has boosted prices," Standard Chartered Bank food commodities analyst Abah Ofon told the media. "It's fashionable. This is the year of agricultural commodities."5
The "hot money" that has fled the collapsed real estate bubble is now moving into the commodities bubble, and that includes food. "Hot money" is an influx of speculative capital in search of high rates of return, quickly moving from one market to another. It moves, however, not because the products are better (the traditional justification for price-setting according to "free market forces") but because the speculative "spread" is better.
Money is invested not in making real goods and services but simply in making more money. Food prices are being driven by speculators, and today that includes ordinary investors like you and me, who can now gamble in agricultural futures through ETFs that have opened up a lucrative market formerly available only to big investment players.'
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An Answer to the Global Food Crisis: Peasants and Small Farmers can Feed the World!
'Trade liberalization has waged a virtual war against small producers. Farmers have been forced to produce cash crops for transnational corporations (TNCs) and buy their food on the world market.
Over the last 20-30 years the World Bank and the International Monetary Fund (IMF) and more recently the WTO have forced countries to decrease investment in food production and to reduce support for peasant and small farmers. However, small farmers are the key food producers in the world.'
Over the last 20-30 years the World Bank and the International Monetary Fund (IMF) and more recently the WTO have forced countries to decrease investment in food production and to reduce support for peasant and small farmers. However, small farmers are the key food producers in the world.'
'Neo-liberal policies have destroyed the capacities of countries to feed themselves.
After 14 years of NAFTA (North America Free Trade Agreements) Mexico went through a major crisis often dubbed as the “tortilla crisis”. From an exporting country Mexico has become dependent on US maize imports and current imports 30 percent of its maize. Nowadays, while increased amounts of US maize have suddenly been diverted to agro-fuels production, quantities available for the Mexican markets have dropped, provoking price surges.'
After 14 years of NAFTA (North America Free Trade Agreements) Mexico went through a major crisis often dubbed as the “tortilla crisis”. From an exporting country Mexico has become dependent on US maize imports and current imports 30 percent of its maize. Nowadays, while increased amounts of US maize have suddenly been diverted to agro-fuels production, quantities available for the Mexican markets have dropped, provoking price surges.'
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Iam
Raju Al Nima
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Find out health informations update, beauty care,fitness energizing moves, easy recipes, expert tips, and advice on losing weight from healtheverydays
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