Comments on: Growth or Hot Money: What’s Really Affecting Food Prices

By: Ormond Otvos

Ormond Otvos — Thu, 10 Feb 2011 22:27:46 +0000

I’m sort of not surprised at the low level of commentary, since it’s a really important subject, and an educated public might cost the rich some of their wealth. (See George Monbiot in the Guardian.)

The world is running short of food. It’s official, from those whose job it is to make the surveys.

Shortages mean the price will go up in the future, so the new money is chasing commodities.

You want supply and demand?
OK. Ethanol is subsidized, so corn is going into that. Corn is also food.

Jeez. Gold bugs!

By: jawvmm

jawvmm — Wed, 09 Feb 2011 20:28:33 +0000

The premise is wrong in the first place – the FAO food index was on its way up long before August when Bernanke made his announcement, not to mention before the policy went into effect in November – it didn’t suddebly shoot up.

It dropped suddenly after the 2007-08 spike and has climbed at only a slightly less steep pace since the drop.

http://www.fao.org/worldfoodsituation/FoodPricesIndex/en/

By: CT

CT — Tue, 08 Feb 2011 16:28:37 +0000

who needs to buy a farm when we all can sneak in at night and take all your crops. No. Guess what it happens all the time.

By: Laaaughiiing

Laaaughiiing — Tue, 08 Feb 2011 16:14:28 +0000

Oh! just go back. Need not report to anyone. Thanks for the joke.

By: phelps who cant swim

phelps who cant swim — Tue, 08 Feb 2011 15:38:18 +0000

steverino, I need a haircut so bad I am having trouble seeing what I’m typing. Global warming has caused the tempature here in my part of the south has a caused a mini ice age and brought tons of snow and ice with it. Well, tons for us here anyway. Don’t even want to leave the house. I’m ready to go back to West Palm Beach!

By: Tundra Monkey

Tundra Monkey — Tue, 08 Feb 2011 14:11:50 +0000

The whole world is printing. Can’t deny.
Maybe the fastest printer is still on the other side of the planet. Please identify.

Maybe the theory of relativity is in play.
One pulls the other’s legs, the other snatch the opposite’s moustache. That makes all the currencies floating on a sea of bubbles, with no early signal of submerging.
Maybe dollar is still relatively firm, still room for breather.

By: Worried1

Worried1 — Tue, 08 Feb 2011 10:39:40 +0000

Great article, Bill.
As usual, some folks just miss the big picture. Don’t even think of responding to the idiots. It might delay your next article, and that would be a shame.

By: steverino

steverino — Tue, 08 Feb 2011 07:06:08 +0000

if somebody gave me a coupla $$ tril, i wouldn’t spend one cent. i’d hide it in my mattress [HUGE bed] for 98 years…

…and save the entire world!

nightnight.

By: steverino

steverino — Tue, 08 Feb 2011 06:58:32 +0000

all i know is i really need a freaking haircut.
anybody else?

then, i’m gonna have a LBT
on toast!

By: Richard

Richard — Tue, 08 Feb 2011 01:22:51 +0000

It might have something to do with the huge crop failures this year in Russia, and other places. Wasn’t Pakistan under water for most of the summer? More mouths to feed, and less food. When people see crops failing, they scramble to buy supplies, to the point of hoarding.

Who is Bernanke giving this freshly printed money to? Bankers, and what are they doing with it? Buying stocks, the market is up, buying commodities, those are up too. As for food, I think it has more to do with shortages, than freshly printed money. When are world leaders going to get serious about population control, hopefully a voluntary one?