Skip to main content

Truly Shocking. How Goldman Sachs and Others gambled on starvation

That Goldman Sachs, and that ilk, are on the nose is now almost an oxymoron. However this piece in The Independent by Johann Hari, if true, puts Goldmans and other bankers in a totally new light - and low. Appalling, appalling, disgraceful people with no moral scruples or values whatsoever. Hari explains:

"By now, you probably think your opinion of Goldman Sachs and its swarm of Wall Street allies has rock-bottomed at raw loathing. You're wrong. There's more. It turns out that the most destructive of all their recent acts has barely been discussed at all. Here's the rest. This is the story of how some of the richest people in the world – Goldman, Deutsche Bank, the traders at Merrill Lynch, and more – have caused the starvation of some of the poorest people in the world.

It starts with an apparent mystery. At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn't afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it "a silent mass murder", entirely due to "man-made actions."

Earlier this year I was in Ethiopia, one of the worst-hit countries, and people there remember the food crisis as if they had been struck by a tsunami. "My children stopped growing," a woman my age called Abiba Getaneh, told me. "I felt like battery acid had been poured into my stomach as I starved. I took my two daughters out of school and got into debt. If it had gone on much longer, I think my baby would have died."

Most of the explanations we were given at the time have turned out to be false. It didn't happen because supply fell: the International Grain Council says global production of wheat actually increased during that period, for example. It isn't because demand grew either: as Professor Jayati Ghosh of the Centre for Economic Studies in New Delhi has shown, demand actually fell by 3 per cent. Other factors – like the rise of biofuels, and the spike in the oil price – made a contribution, but they aren't enough on their own to explain such a violent shift."

Continue reading here.

Comments

Popular posts from this blog

Whatever democracy the Palestinians had is dying

Almost a desperate cry from a well-known, respected and sober moderate Palestinian.

Mustafa Barghouthi is secretary-general of the Palestinian National Initiative and a member of the Palestinian Legislative Council. He was a candidate for the Palestinian presidency in 2005.

He writes in a piece "The Slow Death of Palestinian Democracy" on FP:

"Palestinian municipal elections were supposed to be held last week. Instead, they were canceled. A statement released by the Palestinian Authority claimed the cancellation was "in order to pave the way for a successful end to the siege on Gaza and for continued efforts at unity" between Hamas, which governs the Gaza Strip, and the government in the West Bank.

The cancellation of this election was an unjustified, unlawful, and unacceptable act. It damages democratic rights and makes a mockery of the interests of the Palestinian people.

But this is far more than an internal Palestinian issue. The only lasting peace between Isr…

Big Brother alive and well in the USA in 2007

The so-called "war on terror" has shown itself up in a multitude of manifestations. The most dangerous thing has been governments using the "excuse" of the war to restrict certain civil liberties, allowing government agencies to pursue a variety of things that they would otherwise would not - and should not - be allowed to do and gathering, and retaining, a variety of information on its citizens.

The Washington Post reports on the latest incursions into civil liberties of all Americans:

"The U.S. government is collecting electronic records on the travel habits of millions of Americans who fly, drive or take cruises abroad, retaining data on the persons with whom they travel or plan to stay, the personal items they carry during their journeys, and even the books that travelers have carried, according to documents obtained by a group of civil liberties advocates and statements by government officials.

The personal travel records are meant to be stored for as lo…