Chicken isn't the only thing that way more expensive than it
used to be. Global food prices are more than double what they were in 2003,
according to the Food and Agriculture Organisation of the United Nation's
latest release.
According to research from anti-poverty advocacy group World
Development Movement (WDM), this doubling of food prices could be be because
big banks and hedge funds have been betting on food prices by the way of
futures contracts. One of the biggest food speculators in the market is Goldman
Sachs, which made an estimated $400 million from speculating on food, according
to a report by WDM.
From the report:
"The US
has passed legislation to limit speculation, but the controls have not been
implemented due to a legal challenge from Wall Street spearheaded by the
International Swaps and Derivatives Association, of which Goldman Sachs is a
leading member. Similar legislation is on the table at the EU, but the UK government
has so far opposed effective controls. Goldman Sachs has lobbied against
controls in both the US
and the EU."
Read more: http://www.businessinsider.com/goldman-made-400m-on-food-speculation-2013-1
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