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Tue Feb 26, 2013, 05:21 AM

 

How Wall Street has driven up the cost of food worldwide

“I brought you here for a reason,” Kaufman tells me. “This is 33 Liberty Street, where both money and debt are manufactured. It is the perfect place to start when trying to understand how Wall Street has driven up the cost of food worldwide.” In 2009, the Federal Reserve printed an unprecedented one-and-a-quarter-trillion dollars of new money in a single day, he says.

“Out of the bowels of the Fed, more bills magically appeared and they used it to purchase debt — home mortgages, business loans, school loans.” The Fed purchased about one fifth of our county’s mortgage-backed securities. “That’s what Occupy Wall Street doesn’t quite understand,” Kaufman adds. “You can’t just get rid of debt, of student loans and the like, because money enters the market as debt. That’s what it is, at the core.”

From this moment forth, every step of my Kaufman-led tour of the increasingly securitized financial district is monitored. Five security guards walk past us while we sit, staring at the double doomsday doors. One cop car cruises by, slow and deliberate. Just across Liberty Street from the Federal Reserve is the corporate headquarters of JP Morgan Chase, recently splashed across headlines when Occupy Wall Streeters dumped five-gallon-buckets of human excrement over the bank’s public plaza. The culprits were caught, thanks to surveillance cameras, and the city-mandated public plaza at the base of sixty-story high headquarters remains closed...

Over the past twenty years, Wall Street has become increasingly invested in America’s food production. It started with the invention of the Commodity Index Fund (CIF) by Goldman Sachs in 1991, which allow bankers to buy and sell shares of wheat, soy, cottonseed, and corn oil futures (among countless others) as if they were Apple stock. Most of the big banks involved in the real estate bubble—JP Morgan Chase, Barclays, Morgan Stanley—have their own unique CIFs, which have provided them with billions of dollars in relatively risk-free investments that they hedge and move around to turn a profit.

Along the Hudson River, just a quarter-mile west of One World Trade Center and the Barclay-Vesey Building, and a stone’s throw from Goldman Sachs, sits the Irish Hunger Memorial....“During the famine there was an incredible amount of food in Ireland but the food was shipped to London because people in London could pay for it. And the people in Ireland could not,” Kaufman explains...."People don’t go hungry because there isn’t enough food; they go hungry because they can’t afford to eat.”

While the Irish Famine might seem far off, hundreds of millions of pounds of grain go uneaten in American grain silos because they are impossible to sell at their record high prices. In 2007, right when the price of commodities shot through the roof, a flip occurred...Where America once had a grain deficit, we suddenly had a surplus...Food prices shot up, thousands of tons of U.S. grain went un-purchased and uneaten, and food-related riots broke out in more than thirty different countries. What had happened....?

http://mondediplo.com/blogs/the-futures-of-farming

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Reply How Wall Street has driven up the cost of food worldwide (Original post)
HiPointDem Feb 2013 OP
Jasana Feb 2013 #1
dtom67 Feb 2013 #2
Turbineguy Feb 2013 #3
Raster Feb 2013 #7
Fire Walk With Me Feb 2013 #4
Fire Walk With Me Feb 2013 #5
theKed Feb 2013 #6
Hubert Flottz Feb 2013 #8
jsr Feb 2013 #9
AndyA Feb 2013 #10
zeemike Feb 2013 #11
loudsue Feb 2013 #12
Amonester Feb 2013 #13
Berlum Feb 2013 #14

Response to HiPointDem (Original post)

Tue Feb 26, 2013, 05:31 AM

1. K&R More people need to read this. NT

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 05:45 AM

2. quantative squeezing...

Now we have QEnfinity! Sweet!

How's that pyramid holding up, Mr Ponzi?

I need them to hold it together 4 or 5 more years; I can't grow my own food yet.

Of course, I'll probably lose my land before the, anyways...

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 05:50 AM

3. Wall street is a net drain to the economy.

It's modern incarnation of the 18th Century French aristocracy.

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Response to Turbineguy (Reply #3)

Tue Feb 26, 2013, 07:07 AM

7. Yes, and if we had any smarts about us, we would install guillotines on every street corner....

...in the Wall Street financial district. Every street corner. And we would use them...daily.

Every new Wall Street millionaire/billionaire means more people will go hungry. Every new millionaire means someone will not have medicine to treat their illness. Every new millionaire means even more is taken from the 99% and funneled directly to the 1%.

Every new Wall Street millionaire means that "of the people, for the people and by the people," is a flim-flam fairy tale, no longer valid.

Guillotines. Every street corner. Daily.


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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 05:55 AM

4. Occupy Wall Street DOES understand that debt is the core, is created out of thin air:

 

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 05:56 AM

5. K&R

 

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 07:05 AM

6. "The works of the roots of the vines,

of the trees, must be destroyed to keep up the price, and this is the saddest, bitterest thing of all. Carloads of oranges dumped on the ground. The people came for miles to take the fruit, but this could not be. How would they buy oranges at twenty cents a dozen if they could drive out and pick them up? And men with hoses squirt kerosene on the oranges, and they are angry at the crime, angry at the people who have come to take the fruit. A million people hungry, needing the fruit- and kerosene sprayed over the golden mountains. And the smell of rot fills the country. Burn coffee for fuel in the ships. Burn corn to keep warm, it makes a hot fire. Dump potatoes in the rivers and place guards along the banks to keep the hungry people from fishing them out. Slaughter the pigs and bury them, and let the putrescence drip down into the earth."

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 07:45 AM

8. Ask Rush Limbo about pork bellies...

he has one.

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 08:10 AM

9. Recommend

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 08:14 AM

10. If there were any industry where I would support job cuts, it would be Wall Street

What a bunch of crooks. They manipulate prices on everything, and once again gas is going up--not due to supply and demand, or plants closing or anything else, it's due to speculators running up the prices.

Our government has done essentially ZERO to stop this.

The prices at the grocery store are shocking. I keep looking at things I used to buy, and I think to myself, "they must be kidding" on the price. On top of that, we don't really know what's in some of it and apparently it's not supposed to be any of our business what we eat.

K&R

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Response to HiPointDem (Original post)

Tue Feb 26, 2013, 08:41 AM

11. It is a parasitic problem.

Wall street takes a piece of every action and provides nothing in return.
We must have fundamental change or we will become slaves and they will be Massa.
K&R

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Response to HiPointDem (Original post)

Wed Feb 27, 2013, 03:14 AM

12. This is a HUGELY important article.

One that everyone should read.

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Response to HiPointDem (Original post)

Wed Feb 27, 2013, 04:18 AM

13. K&R

Will read and share.

This is the end if they're not stopped.

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Response to HiPointDem (Original post)

Wed Feb 27, 2013, 04:58 AM

14. Republican Family 'Values' - ProfiteeringStyle

Driving up the cost of food through speculation is flat out evil.

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