The Conservative Cave
Current Events => General Discussion => Topic started by: megimoo on April 28, 2008, 06:28:01 PM
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Jim Rogers, the former business partner of legendary financier and philanthropist George Soros, is perhaps the best-known investor in broad-based commodity funds. He started shifting his money to commodities in the 1990s. On his trips around the world, he came to realize that almost everything, from nickel to cacao, was in short supply in a globalized economy.
He's laid bets on rising prices ever since. This has had an impact on the entire industry, because Rogers' International Commodities Index is a benchmark for countless funds. These moneymaking machines have attracted billions in investments in recent years, and some of that money has been pumped into futures contracts, heating up prices even further.
But now Rogers, of all people, is warning: "Unless something happens soon, we will see people not getting any food at all, at any price. This is the sort of thing we read about in history books, but now I'm afraid that it could happen again."
From his perspective, though, the calamity is not the fault of investors like him, but of developing countries' policies -- like imposing export bans and capping prices. This deprives farmers, who face rising costs of necessary items like fuel and fertilizer, of any incentive to produce more rice.
"I think this attitude is morally reprehensible," says Rogers. "These governments would rather let people starve than allow prices to rise naturally." Removing price controls, he says, is the only way to increase rice production levels once again.
Farmers, after all, wouldn't give away their rice to the poor, says Rogers. But he fails to explain how the poor should pay the higher prices in the first place. Perhaps it's up to politicians?
http://www.spiegel.de/international/world/0,1518,549187,00.html
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Moms, might you be adopting a franksolich tactic here?
Are you trying to panic the primitives?
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Jim Rogers, the former business partner of legendary financier and philanthropist George Soros, is perhaps the best-known investor in broad-based commodity funds. He started shifting his money to commodities in the 1990s. On his trips around the world, he came to realize that almost everything, from nickel to cacao, was in short supply in a globalized economy.
He's laid bets on rising prices ever since. This has had an impact on the entire industry, because Rogers' International Commodities Index is a benchmark for countless funds. These moneymaking machines have attracted billions in investments in recent years, and some of that money has been pumped into futures contracts, heating up prices even further.
But now Rogers, of all people, is warning: "Unless something happens soon, we will see people not getting any food at all, at any price. This is the sort of thing we read about in history books, but now I'm afraid that it could happen again."
From his perspective, though, the calamity is not the fault of investors like him, but of developing countries' policies -- like imposing export bans and capping prices. This deprives farmers, who face rising costs of necessary items like fuel and fertilizer, of any incentive to produce more rice.
"I think this attitude is morally reprehensible," says Rogers. "These governments would rather let people starve than allow prices to rise naturally." Removing price controls, he says, is the only way to increase rice production levels once again.
Farmers, after all, wouldn't give away their rice to the poor, says Rogers. But he fails to explain how the poor should pay the higher prices in the first place. Perhaps it's up to politicians?
http://www.spiegel.de/international/world/0,1518,549187,00.html
The last sentence "perhaps it's up to politicians" should scare the hell out of anyone. Georgie boy should pony up a couple of billion on feeding the poor rather than p1ssing it away on his left wing politicians that lose elections.
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Moms, might you be adopting a franksolich tactic here?
Are you trying to panic the primitives?
If you 'would plant the seed' and explain the way the futures markets work to the primatives you could perhaps 'scatter the flock a bit '!"
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Moms, might you be adopting a franksolich tactic here?
Are you trying to panic the primitives?
If you 'would plant the seed' and explain the way the futures markets work to the primatives you could perhaps 'scatter the flock a bit '!"
Sadly, that's like trying explain an axial-flow turbojet to a snapping turtle. And not a real bright one, at that.
:cheersmate:
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OK, I looked everywhere and can't find any images, so I need you all to use your memories:
Remember the SNL sketch where Gilda was the leader of a French cell where they were screaming "We want some FOOD!" ?
Unless my wires are crossed again...
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OK, I looked everywhere and can't find any images, so I need you all to use your memories:
Remember the SNL sketch where Gilda was the leader of a French cell where they were screaming "We want some FOOD!" ?
Unless my wires are crossed again...
SNL - Best of Gilda Radner (1989)dvd amazon.com