Skip to main content

Making money (lots!) from speculating on food staples

Scandalous? - or just plain ol' capitalism at work? The Independent reports in "Goldman bankers get rich betting on food prices as millions starve" how the Wall St. behemoth has made squillions of dollars from, in effect, the suffering of others.

"Goldman Sachs made more than a quarter of a billion pounds last year by speculating on food staples, reigniting the controversy over banks profiting from the global food crisis.

Less than a week after the Bank of England Governor, Sir Mervyn King, slapped Goldman Sachs on the wrist for attempting to save its UK employees millions of pounds in tax by delaying bonus payments, the investment bank faces fresh accusations that it is contributing to rising food prices.

Goldman made about $400m (£251m) in 2012 from investing its clients' money in a range of "soft commodities", from wheat and maize to coffee and sugar, according to an analysis for The Independent by the World Development Movement (WDM).

This contributed to the 68 per cent jump in profits for 2012 Goldman announced last week, allowing it to push up the average pay and bonus package of its bankers to £250,000.

The extent of Goldman's food speculation can be revealed after the UN warned that the world could face a major hunger crisis in 2013, after failed harvests in the US and Ukraine. Food prices surged last summer, with cereal prices hitting a record high in September.

Christine Haigh of the WDM said: "While nearly a billion people go hungry, Goldman Sachs bankers are feeding their own bonuses by betting on the price of food. Financial speculation is fuelling food price spikes and Goldman Sachs is the No 1 culprit."

Comments

Popular posts from this blog

One Forbes List: A roll call of criminals, psychopaths and megalomaniacs

2016 has ended and there has been the inevitable list of the best of 2016 of this or that.     

The just published Forbes List of the Most Powerful People is another thing altogether.    It is truly shocking to think that those listed are as downright awful and the worst of humankind has to offer.....yet wield enormous power.     The Age newspaper in "Who's who list a roll call of criminals, psychopaths and megalomaniacs" provides the details.....

"It's that time of the year again. In an effort to celebrate or sum up, or maybe just expunge the events of a year that's just wound up, we've become obsessed with rankings. Top 10 Christmas hits, bestselling books, the most excruciating movie moments, the seven things we're doing to wreak havoc on our planet. This year, courtesy of US presidential election, we also have the top 20 fake news stories, the 10 steps for adjusting to a Trump presidency, and the best destinations for those that find they simply ar…

"Wake Up"

The message is loud and clear....and as you watch this, remember that it was on Israeli TV - not some anti-semitic or anti-Israel program somewhere in the world.


Happy New Year....not?

Credited to Mike Luckovich