Friday, February 18, 2011

International Speculation Culprit in Rising Food Prices

by Umberto Mazzei from Americas Program.

He argues that the current food crisis is fueled by the international food cartels and their ability to control prices, and investor speculation.
International cartels now use their control over the global food supply to make huge profits. There are six major corporations that control the purchase and sale of agricultural products: Cargill, Kraft, Bunge & Born, ADM (Archer Daniels Midland), Nestlé and General Mills. Food prices are set at exchanges in Chicago, New York and London.
For a more thorough explanation of this speculation thesis, view/listen/read this excellent interview [22:15m] on Real News with two economists.