“The reality is that today in these financial-agricultural markets, more than fifteen times the global cereal production is trading,” he said. “That is asking for speculation.” Read More Here
Food, understood and traded as a commodity, is just as susceptible to unregulated speculation and price variation as other commodities (e.g. home mortgages). The current rise in prices is not entirely dependent on poor harvests, but is also closely related to investor speculation, which arises from complex calculations of supply and demand. The modern world has solved the problem of production – we produce far more than we consume – but fair distribution of these resources still eludes us and results in widespread hunger for most of the humans on this planet. This injustice in the production and distribution of food, obviously, is something that affects all of us and it helps to make clear the ways in which the social and economic systems that govern the process rarely have the well-being of all humans in mind.