Another Food Price Crisis On the Way

By on 05/12/2010 in Uncategorized

In these two videos Jayati Ghosh, whom I interviewed for Stuffed and Starved and whose mind is filled with whip-smart insight, offers a short primer on why financial market speculation drove up the price of food in 2008, and why it’s likely to again. Very simply, there is once again money with which traders can gamble – courtesy of the bailouts – and while people are tired of bailing out banks, governments can’t credibly say that they won’t intervene in food markets. So there’s tremendous moral hazard. Traders know that when it comes to futures in food, they can’t lose. A different story, obviously, from the 1 billion who are already hungry. They’re losing every day. The majority of them: women and girls. Watch Jayati’s videos below, or read the transcript, courtesy of the good people at The Real News Network. [Updated with functioning video links, via IB]