G-20 Governments Taking (The Wrong) Actions to Curb Food Inflation
Yes, I know I have been harping on what I have foreseen as the crusades against "speculators" for a couple years now, since the "evil oil speculators". Let me make something perfectly clear. Whenever govts. debase their currencies and cause rampant price inflation, they will always and everywhere find someone else to blame for their own incredible stupidity and myopia. Even Gideon Gono, the central banker from Zimbabwe, recently rationalized the havoc he wreaked on that poor country by saying that if Bernanke is doing it in the US, he knows he made the right decision in Zimbabwe.
Well, this article is just the beginning of what to expect from the politicos. First it starts out as the evil agri specs. Next it'll be the evil "hoarders". See, "speculators" and "hoarders" by any other names in these kinds of politically unstable environments are known as "prescient", or "preparatory". And most people, being dependent on govt. either literally or in thought, will fall for it nearly every time.
The G-20 seems to be worried about "price manipulators". Well, I guess they should arrest themselves because they are responsible for the blastoff of the CCI and raw goods prices. Sorry for this heated editorial, but it frustrates me when I see what's coming and noone listens to me. This is dangerous stuff, to be labeling smart investors as enemies; that is exactly what they are doing.
And price controls never, ever work. Just wait until they try them, but even more importantly, wait until they don't work. Fun times.
Agriculture ministers gathered in Berlin said they were “concerned that excessive price volatility and speculation” in international markets for agricultural commodities may threaten the security of the world’s food supply.
The ministers from 48 countries called on the G-20 nations to “fight the abuse and manipulation of prices” in agricultural markets, according to a joint statement handed out at a press conference in the German capital today.
France presides over the Group of 20 this year, and the country’s agriculture minister, Bruno Le Maire, has said world agricultural markets require more regulation. German farm minister Ilse Aigner, who hosted the meeting, said today that price and position limits should be among measures considered.
(As an aside, and being a coin collector, I remember the stories my dad told me about LBJ's sheer stupidity of blaming coin collectors for removing the silver specie out of circulation. Yes, you dumbass money printer, Gresham's Law mandates that this happens. Noone wants worthless clad coinage and they will use that worthless scrap metal long before they use silver!)
Last Edit: Jan 26, 2011 0:19:57 GMT -5 by traelin0 - Back to Top