The real reason for spikes in food prices

By Yaneer Bar-Yam and Greg Lindsay – More than 40 percent of grain futures can now be traced to financial institutions, which nearly doubled their commodity bets over the last five years — from $65 billion to $126 billion.

When it comes to food, our faith in markets is contingent on their ability to match supply and demand at prices that benefit farmers, while ensuring the greatest number of people can afford to eat. Speculation in grain futures knocks these prices out of equilibrium. more>


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