Reuters reports on the stopped grain exports from Russia:
[…] caused international grain prices to spike as markets placed bets that without shipments from one of the world’s leading exporters, global supplies would be restricted.
In 2008 the price for rice had already risen causing a stir in many parts of the world. Read through the linked Wikipedia articles for some shivers. Back then, financial speculation seemed as one of the factors that caused the crisis in the first place but definitely made it worse. People died in Haiti back in 2008 due to riots caused by the rice shortage.
The biggest (by population) country, China, felt this as quite a sting and rumors have it that the crisis was provoked by the US to “restore balance” when China had realized what power it thought it had via the US bonds it held (and still holds). This theory is not too far-fetched, although smells of a conspiracy theory. However, endangering the US dollar’s status as world-wide reserve currency has been a quite dangerous business in the past as we know from the case of a Middle-Eastern dictator with a characteristic mustache who had announced to trade his country’s oil in Euro and shortly thereafter found out about evidence of WMDs in his front lawn. The neighboring country backed down from a similar plan, trading oil in their national currency instead – however, the plans weren’t completely given up. Luckily this neighboring country is known to pursue a nuclear program, albeit claiming it to be exclusively for civil purposes. However, nothing better than a nuclear program not exclusively for civil purposes to be “A-insured” from mishaps like those that affected the aforementioned unlucky dictator and front lawn. Nevertheless it provides a very nice excuse for a swift
invisit to secure oil-supplworld peace.
So now – according to some after (yes, they seem to be serious) a world financial crisis that made the rich richer and the poor even poorer – we’re back to assholes betting on prices of staple food and thus price increases which may cumulate in riots and deaths (not alone due to famine) once more. So famines – aside from those that exist already for no good reason – will be caused by unscrupulous megalomaniacs that feel like using financial “instruments” such as shorts, put and call options, naked puts and so on to move price mostly levels without even moving a single grain of these staple foods (which might otherwise justify price changes).
Brilliant. Spectacular. Learned from the past – well done!
Oh, before I forget it. I was going to offer a few cars and numerous gold ingots for sale. Please don’t be worried that I don’t own them right now and give me your money instead. I mean if you read my blog you will trust me more than those banksters, won’t you? So interested parties contact me by mail via the contact link at the top. Please no offers of multi-million dollar heritages from deceased African relatives 😉