World Development Movement: cretins ahoy!

The increase in feed prices comes despite strong commodity supplies. Wildfires destroyed some Russian wheat during the summer, but the US and other grain producing regions have had good harvests.

Since the financial crisis began, market analysts have watched speculative money pouring into commodity derivative markets, including food. Many experts link this activity by banks and hedge funds to recent volatility and sudden inflation in the retail costs of food and energy.

The World Development Movement, a UK-based anti-poverty group, said the government needed to support measures being discussed inside the EU to regulate markets better and curb the behaviour of investment bankers and hedge funds.

\”As City traders enjoy their Christmas bonuses, their speculative activities are fuelling food price inflation,\” said Deborah Doane of the WDM.

\”This is bad news for the millions who live on the breadline in developing countries, as well as for hard-working families struggling to get by here in the UK.

\”Even on Christmas Day, the British public is facing higher food bills at a time they can least afford it, as again we bear the brunt of bankers\’ greed.\”

We\’ve dealt with these morons before.

Speculation in food is a good thing. Adam Smith\’s take on it starts at IV.5.40.

What the speculator does is move prices around in time: and thereby dampens the volatility of such prices by moving consumption around in time.

Yes the WDM are indeed cretins. Teenage Trots who have yet to realise that frotting off over a volume or two of Marx really doesn\’t help work out how things are in the real world.

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