Posted on 01/26/2011 7:14:34 AM PST by SoFloFreeper
The run-up in global commodity prices is stirring debate in a number of countries over the role of financial speculators, a prospect that could fuel a regulatory backlash by governments keen to control food prices.
(Excerpt) Read more at online.wsj.com ...
If this (speculation) is what is causing commodity inflation, and I happen to think it is, then the cure is very simple: Raise interest rates.
Speculators (hedge funds and I-banks) finance their positions with short-term money, and if you raise the hurdle rate, you make holding this positions less attractive.
Same goes for gold and silver, incidentally.
Mmmm, that’s right. Americans need more corn starch in their diets.
You hit the nail on the head with that one bernanke even mentioned speculation would occur as a result of his printing. They are scratching each other’s back though he is also monetizing our debt so they can keep on spending.
Maybe if we eliminted the mandates and massive subsidies that force Americans to burn an ever increasing portion of the food supply in our gas tanks the problem would be solved.
This has nothing to do with burning corn.
This is what is causing the record prices:
The U.S. Dollar fell against the major currencies after President Obama, during his State of the Union address, failed to convince executives and economists that he’s serious about controlling the U.S. budget deficit.
Although Obama did propose a partial freeze on government spending, many participants at the economic summit in Davos, Switzerland still felt the U.S. is lagging their foreign counterparts in cutting a record budget deficit of more than $1.2 trillion.
I would like to point out that the price levels are global.
America is responsible for global rises? So we should pay? Create bogus institutions in America to control global price mechanisms? What bull!
Its just another Anti American blame game and crusade!
It’s only going to get worse
CBO’s Revised Budget Sees 2011 Deficit Rising By $500 Billion To $1.5 Trillion; $4 Trillion In Deficit Through 2013 Guarantees QE3+
I wonder how long they can rearrange the deck chairs...
Gov Palin was again 100% correct on this. By the fed doing Qe2 they unleashed the dragon and it will burn us all befor eit’s back in its chains. Inflation is not a pretty picture.
Its all true and good that the trading houses are largely American driven. Its interesting to note that the language of business is English. America filtered to the top of the G7 for many reasons.
Also interesting to note that the creators of all of the success and failures are Lulu’s “white skinned blue eyed” dudes who created modern man.
Obama wants to destroy all American involvement....and replace it with what? The UN? What bull!!!
Q: When Helicopter Ben Bernanke prints waaaaaay too many more dollars than businesses will use to invest in an anti-business climate, what are people SUPPOSED to do with the excess dollars?
But the price rise isn’t tied to that.
Look at the price of wheat and other cereal crops. It is across the board.
We (who paid attention) knew that many investors would run to commodities. There will be many more. Our business, political and academic leaders will stop the paradigm of globalism, or their near future will get worse than they can imagine.
Food Price Controls = Food Shortages = starvation (among the poorer people in the world). What we need for world stability./s
Food and Energy are never factored into inflation...WHY?
It is called supply and demand.
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