Skip to content

How stupid is this damn idiot?

Sandra Martinsone, a policy manager at Bond, a network of international development charities, said a windfall tax would be a way to restore some balance to food markets and help the poorest.

“[The big agrifood companies] are clearly capitalising on the reduced supply and increased demand, further exacerbated by commodity trading,” she said. “When supply is significantly lower than demand, it gives space for price increase. But this is also exacerbated by speculative stock markets, since wheat and other commodities are traded on stock markets and therefore prices fluctuate.”

For a start, they’re not traded on stock markets but commodity markets. Then, yes, prices change – because supply has changed, that’s the entire problem, right? Finally, commodity trading – speculation – only increases the physical price of stocks are rising. The futures price collapses to the physical at delivery date, d’ye see? So, the only way that the physical price can be held up by speculation is if someone keeps stock off the market – hoarding. Which we would see in increased food stocks. Which aren’t there. Thus it’s not happening.


17 thoughts on “How stupid is this damn idiot?”

  1. Allthegoodnamesaretaken

    Averagely stupid given the number of morons calling for windfall taxes left, right and centre

  2. Never let a good crisis go to waste.
    And WTF is a network of international development charities? Bet if you dig deep enough you’d find the same sort of government funded sock puppets dispensing cash behind the scenes. Still, keeps them in a nice secure job.

  3. Good to see the Navi Star carrying a Ukraine grain shipment arriving in Limerick – purchased by R&H Hall and destined to go into animal feed.
    Highest price buyer I’m guessing.

  4. Oxfam has also called for a windfall tax on food company profits.

    Let’s reduce the incentives for growing food to feed the poor, says charity that claims to want to feed the poor.

  5. Bond – British Overseas NGO’s for Development

    An interesting organisation, the largest funder being the Bill and Melinda Gates Foundation. Who’d have guessed.

    A 50 page set of accounts, lots of waffle very little actual info. However it’s Charitable Activities are split between “Policy and Advocacy”, “Sector Change” and “Building the Network”.

    In 2021 over 71% of total expenditure, this is a charity remember, went on salaries, professional fees and consultancy.

  6. John – I’m sure a man who met Jeffrey Epstein “dozens of times” after his 2008 conviction for soliciting a minor for prostitution only has the best interests of HUMANITY at heart.

  7. So… prices go up because food is in short supply. Give people plundered money to increase demand.

    How does that solve supply shortage?

  8. Headline from 2042: BOND calls for a tax on windfall profits for insect farms. Claim: Cricket farmers hoarding stocks to push up the price:

    NOTE: Thanks to the sterling efforts of the National Power Service, your energy allowance has been increased from ten hours a day to fifteen hours a week.

    Use Power Wisely! Protect the NPS!

  9. The problem with the world today is there are far too many highly-educated idiots.

    “Oxfam has also called for a windfall tax on food company profits.“

    Oxfam can get f****d. As I’ve said for many years, I’d rather donate money to people who are trying to help.

    “British Overseas NGO’s for Development … the largest funder being the Bill and Melinda Gates Foundation”

    Ah yes, those two well-known Brits there.

  10. Can you explain how short squeezes drive up spot now?

    Is spot actually determined by supply, or by random news of a flood in Texas or whatever?

  11. Spot should be determined by supply and demand while future prices are more likely to be influenced by random news of a drought/flood in Saskatchewan. S usually produces about 16 million tonnes of wheat but last year it was only 8.3 m tonnes, but that is still nearly double the amount that Texas grows.

  12. Can we abandon Walrasian tatonnement for psychological realities yet?

    What if I offer twice what spot should be because I know my Tx customers are gullible and will be willing to pay five times more on the backend, blaming it on the local floods?

Leave a Reply

Your email address will not be published. Required fields are marked *