Speculating with Lives
How Global Investors Make Money Out of Hunger
If you ever wondered how dictators come to power, this is the method: You single out a group of people, make them the scapegoat and make up stories on how they are responsible for all what's wrong with the world.
Now, to be fair, utter ignorance about the working of markets runs rampant in the USA as well.
The above mentioned article is not worth reading. Just as with most fabrications of its ilk, the headline is the whole story. It's propaganda meant to lead the average reader to create a picture in his head, to promote a certain outcome.
In this case the desired outcome is to render markets meaningless and have the government set prices.
It is propaganda that is meant to prepare Germany for a new planned economy, preferably communism I suppose.
Of all the idiocy spewed forth by these highly intelligent and educated journalists, let me just pick on one:
1: Speculators, hedge funds and other nasties are investing in food items and their concerted buying drives prices out of reach for consumers.
Answer: Said speculators are not buying any foodstuffs at all, but are making BETS on what the price will be at various times in the future (hence: futures trading) !
What is the most certain outcome, if producers (farmers) are promised a high price for future production ?
Right: they'll make more, which in turn, by "Der Spiegels" "reasoning", leads to people going hungry.
Oh, and why are people making bets on higher prices ? Because governments all over the world are busy printing trillions of Dollars, Euros and Yen to deliberately drive up inflation.
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