Wall Street’s feast means global famine

How Goldman Sachs Created the Food Crisis
Don’t blame American appetites, rising oil prices, or genetically modified crops for rising food prices. Wall Street’s at fault for the spiraling cost of food.
BY FREDERICK KAUFMAN | APRIL 27, 2011

Demand and supply certainly matter. But there’s another reason why food across the world has become so expensive: Wall Street greed.
It took the brilliant minds of Goldman Sachs to realize the simple truth that nothing is more valuable than our daily bread. And where there’s value, there’s money to be made. In 1991, Goldman bankers, led by their prescient president Gary Cohn, came up with a new kind of investment product, a derivative that tracked 24 raw materials, from precious metals and energy to coffee, cocoa, cattle, corn, hogs, soy, and wheat. They weighted the investment value of each element, blended and commingled the parts into sums, then reduced what had been a complicated collection of real things into a mathematical formula that could be expressed as a single manifestation, to be known henceforth as the Goldman Sachs Commodity Index (GSCI).

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1 thought on “Wall Street’s feast means global famine”

  1. in april of 2009, the UN estimated that at least 7 million of the world’s poorest would die from the economic disaster schemed by the corpses of wall street and govt here. while tehy reaped billions; the deaths they caused amount to a holocaust… and yet none will ever even be charged their massive crimes against humanity…

    it is past time that the ‘let them eat cake’ crowd learned the marie antoinette lesson… vengeance swift and sharp for the world’s minions of terribly wronged…

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