Goldman Sachs makes $1 billion profit on food price speculation

If goldman wants to make risky bets go ahead, but dont run to taxpayers when they dont pay out.

Our society shouldnt allow this non sense anymore. Between goldman and the arrogant fucking morons at the fed along with larry summers no one should be surprised when the US goes the way of the USSR.
 
goldman sachs doesn't gamble or speculate..these guys manipulate markets has trade record of 100%. goldman sachs is teh market and own the market .controls the horizontal and vertical in the market .and they do it with other peoples money.

even the FBI or obama can't touch goldman sachs global crime syndicate.

Quote from THE-BEAKER:

I HATE THEM AND DETEST THIS ORGANISATION.

ITS NOT ENVY.

I JUST DONT LIKE THEM AND WHAT THEY STAND FOR.




'Risky and secretive' gambling on the price of coffee, cocoa and wheat is leading to unstable food prices and exacerbating poverty and malnutrition but creating billions of pounds for the banking sector

Banks such Goldman Sachs are making huge profits by gambling on the prices of key commodity crops such as coffee, cocoa and wheat, according to the campaign group the World Development Movement (WDM).

By creating funds to allow investors to speculate on the price of food, in the same way they would invest in the shares of a company, banks are able to bet on the price of food.

However this is leading to higher and more volatile prices which make it more difficult for farmers to plan and invest and also lead to damaging price rises - such as those witnessed in 2007/8 - which hit the poorest families in less industrialised countries hardest.

Only last month, says WDM, the price of coffee jumped by 20 per cent in three days, after a trader called the bluff of hedge funds that had made millions by selling coffee contracts and betting on the price to fall. This left hedge funds scrambling to buy actual coffee beans, and the price shot up from the extra demand.

'Nobody benefits from this kind of reckless gambling except a few City wheeler-dealers,' said WDM director Deborah Doane. 'British consumers suffer because it pushes up inflation, British companies suffer because of unpredictable oil and raw material prices, and the world's poorest people suffer because basic foods become unaffordable.'

Main perpetrators

The biggest banks involved in the trading are Bank of America, Citibank, Deutsche Bank, HSBC, Morgan Stanley and JP Morgan. Goldman Sachs alone is estimated to have made more than $1 billion from commodities trading in 2009.

WDM's new report, 'The great hunger lottery', calls for limits to be set on the amount that bankers can bet on food prices and for an end to secretive trading. The US has recently passed tougher regulation for the financial sector but WDM says similar reforms in the EU may not be agreed because of opposition from the City of London and UK Treasury, which still denies speculation played a significant role in the 2007/8 price spikes.

'Perhaps not coincidentally, London is host to the highest amount of commodity trading outside the United States. Recent opposition to EU regulation of hedge funds by the UK treasury shows that the UK government still gives a disproportionate voice to the financial sector at the expense of other sectors of the economy, and against the interests of citizens,' says the WDM report.


http://www.theecologist.org/News/ne...billion_profit_on_food_price_speculation.html
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I wonder how much Soros* will make (a) promoting policies that will lead to hyperinflation and (b) speculating on hyperinflation?

* convicted felon
 
A few years ago the same crowd were complaining about the crisis with 3rd world farmers because prices were so low. I remember them starting a campaign about 'unconscionable' low coffee prices for farmers (sure enough, that marked the low of the coffee bear market).

Now they are complaining that prices are too high? Which way do they want it. Low prices stuff farmers but benefit consumers; high prices stuff consumers but benefit farmers. Are they aware that these are two sides of the same coin?

Goldman Sachs should be commended for bringing prosperity to 3rd world farmers :)
 
Quote from Ghost of Cutten:



Goldman Sachs should be commended for bringing prosperity to 3rd world farmers :)
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:D I like it!

Farmers themselves effectively speculate on the price of their very own crops via hedging. Farming is already risky enough - take the ability to hedge (speculate) away from the farmers and the business becomes ridiculously high risk.

I know what many will say to retort - "but GS are not farmers."
True enough, but how do you limit price hedging (speculation) to only certain people?

You need a market, you need liquidity, you need GS.
 
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