Thursday, May 5, 2011

Goldman Sachs and the food crisis,How Goldman Sachs Created the Food Crisis



 Goldman Sachs   created Goldman Sachs Commodity Index (GSCI), which  is food commodity derivative , weighing the value of some vital food commodities, this was created with the goal  to convert an investment in commodities,  like an investment in a stock, disturbing the earlier system , centuries old buy and sell system which allowed farmers to have flexibility and  invest in their farms.
Today, bankers and traders sit at the top of the food chain -- the carnivores of the system, devouring everyone and everything below. Near the bottom toils the farmer. For him, the rising price of grain should have been a windfall, but speculation has also created spikes in everything the farmer must buy to grow his grain -- from seed to fertilizer to diesel fuel. At the very bottom lies the consumer. The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion people across the world who spend more than 50 percent of their income on food, the effects have been staggering: 250 million people joined the ranks of the hungry in 2008, bringing the total of the world's "food insecure" to a peak of 1 billion .

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