My Appearance on Al Jazeera Yesterday Talking About the Global Food Crisis

Here's me on Al Jazeera's Inside Story yesterday following the UN's meeting regarding the global food crisis (I come in at 6 min. 30 sec's).

Part 1

Part 2

partial transcript:

I say:
There has to be a discussion about why the prices [of food] are going up. Food prices, agricultural products are priced in dollars, the supply of global dollars has increased substantially over the past couple of years, it's averaging 14% money supply growth in the last year or so. This is what's driving the price of food higher. Now if the UN is going to use a package of money to support food, if they're simply going to borrow more money to support the food prices, they're actually making the situation worse because they're expanding those money supply numbers which actually could and probably will have the effect of driving prices even higher.

Interviewer asks: So what would be the way to go about it?

I respond:
They need to talk to the Central Bankers around the world, in the US and in the UK and other Central Bankers around the world about cutting off the globe from cheap credit and cheap money supply which is driving this wild speculation in dollar based commodities. They need to raise interest rates. They need to curb the money supply growth, then you'll see the price of these commodities coming down.

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Comments

[hidflect]

An HSBC analyst on the BBC said "it's a bit of a mystery" why rice prices are jumping. It's no mystery! Oil speculation is "played out". The sharks discovered a new game while diddling with grain futures in the ethanol grain biz: "corner the market on various food futures, cause a panic and rake in billions". Now Bush has provided $750Million food aid. It goes straight to futures speculators while looking charitable. Bush manipulated again by his sneering entourage of Wall Street persuasion peddlers.

The HSBC guy noted there's been no crop failures or shortfalls globally. And why rice? (ethanol is being made from grain, not rice). Countries dependent on rice have insecure supply lines. Capitalist logic determines if they pre-own future production they can easily "waste" a percentage of those contracts and recoup it 10x by limiting the remaining supply since the ability of people to go without food is very limited. If they pulled this stunt in any country they'd be shot, but the Commodities Exchange isn't a country. Another resounding triumph of unfettered capitalism. Those who can't pay "fall by the wayside"... to be euphemistic.

The real kicker? BBC and CNN are fueling this speculative fire with the mantra "Global Food Shortage" over and over. Lies and mendacity. Higher production costs yes - but almost surely no sudden shortage. I can't work out if its incompetence, or they're being manipulated to spread that message. But its doing the job of scaring up a panicked storm for speculators.