Food Hyperinflation Driven by Speculation
Jan. 4, 2008 (EIRNS)"A new crisis is emerging, a global food catastrophe that will reach further and be more crippling than anything the world has ever seen," said Donald Coxe, global portfolio strategist at BMO Financial Group, speaking at the Empire Club's 14th annual investment outlook meeting in Toronto on Thursday, according to Scott Olson today in the Financial Post of Canada. "The credit crunch and the reverberations of soaring oil prices around the world will pale in comparison to what is about to transpire," he said.
Food commodities are reaching an all-time high as a result of central banks' hyperinflationary money pumping. On Thursday, wheat surged 30 cents, to $9.45 a bushel (March contract). Corn for March delivery rose 5.25 cents, to $4.67 in after hours trading on the Chicago Board of Trade, an 11 years high. Soybeans for March delivery gained 11.25 cents, to $12.60 a bushel, a 34 years-record. Also rice touched an all-time record.
According to the Financial Times, the S&P GSCI agricultural commodities index (which measures speculation in agricultural commodities) returned 31% to the speculators in 2007!