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 2partial transcript:
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?
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.