At this point it’s not likely that there will be a QE3, that is, a Quantitative Easing 3, or in plain terms, a third bailout for Wall Street and the international banks. The American people can not stomach, quite literally, another bailout of the financial swindlers.
So, what are speculators to do? How will they get the money that they need to feed their endless gambling in derivatives, credit default swaps and mortgage backed securities? Well, take it out of the mouths and pockets of the people, quite literally, of course.
With the blessing of Congress and President Obama, all of whom have been groveling to said criminals to get their campaign finance money, the Wall Street criminal speculators have been moving into food commodities to make up for their short falls. That means not only massive price increases for food, but also food shortages. I know that’s hard to believe in America in the 21st century, but those who don’t ignore the situation because they are afraid of it can see a massive culinary, shall we say, storm brewing.
Floods, Droughts and Food
By now, many of you have seen the massive floods and severe droughts that have destroyed millions of acres of farmland across the country. So, there will be less food produced and, therefore, less available for consumption. The stocks of our basic food stuffs are already dangerously low. So, you will hear that because of the shortages the price is going up.
But you see, just about all food goes through the commodities market. The farmer contracts with a seller to buy his food at a fixed price. The seller now takes that piece of paper and speculates on it, sells it on the markets. It’s now no different than a stock, or worse yet, a derivative. They manipulate the market, spread fear about the commodity, drive the price up, until ultimately you, the consumer, pay for all that speculation in higher costs. The farmer still only gets what he originally contracted for.
That’s a simplistic view of the commodities market but the point is that there is a total disconnect between the actual food being produced, and the paper (contract) that drives the price up. So food is just another commodity to make money on, just like they did on gas prices (Senator Maria Cantwell had hearings on that).
For example, in 2003 the commodities future market traded about 13 billion dollars. In early 2008, after the financial blowout, that went up to 55 billion. By July that year, it went up to 318 billion and food inflation has been rising ever since.
Is Our Food Supply Safe?
So, imagine the speculators on Wall Street doing to our food supply what they did to our banking industry. And, the Congress and President are doing nothing to stop them or to protect the people.
Roosevelt, during the war, put in food stuffs and industrial goods price controls. Imagine the price of metal, as it became scarce, went so high that we had to build less ships, tanks and planes for the war. Would we have won? So, the government can stop this speculation, if they want to. And they should stop it immediately! Here are some actions to take now.
- Establish price controls on all food commodities.
- Fix food prices at affordable levels.
- Stop all speculation in food commodities, prosecute those who do.
Without these measures food will continue to become more scarce and much more expensive and threaten the very existence of a part of the population. Unlike paper money, food can not be created out of thin air. Call your representative now to stop the food speculation.