Tag: Goldman Sachs Commodity Index

The word again today is GREED.

Frederick Kaufman’s piece for Foreign Policy examines how the Goldman Sachs Commodity Index (GSCI) is responsible for the increase in food prices.

[T]he boom in new speculative opportunities in global grain, edible oil, and livestock markets has created a vicious cycle. The more the price of food commodities increases, the more money pours into the sector, and the higher prices rise. Indeed, from 2003 to 2008, the volume of index fund speculation increased by 1,900 percent. “What we are experiencing is a demand shock coming from a new category of participant in the commodities futures markets,” hedge fund Michael Masters testified before Congress in the midst of the 2008 food crisis…

Continue reading… “How Goldman Sachs Created the Food Crisis”