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.

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. Full Story »

Posted by Jack Powers
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Posted by: Posted by Jack Powers - Apr 30, 2011 - 12:21 AM PDT
Content Type: Article
Edit Lock: This story can be edited
Edited by: Jon Mitchell - Apr 30, 2011 - 11:31 AM PDT
Jon Mitchell
4.0
by Jon Mitchell - Apr. 30, 2011

Excellent explanation, but it could have been more factual instead of editorial in places.

See Full Review » (11 answers)
Fred Gatlin
3.8
by Fred Gatlin - Apr. 30, 2011

In general this is an excellent article it covers the issues well with one point not covered as well as it should. Severe weather around the world has affected the ability to grow crops as widely as usual and governmental issues in the Mid-East are affecting oil and other energies prices.

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Sirajul Islam
4.1
by Sirajul Islam - Apr. 30, 2011

Enterprising article by Frederick Kaufman. He hits the bulls eye. Never in US history has one company wielded such destructive power over political economy, irrespective of whether a Republican or a Democrat happened to be president. At least the lords of the old built railroads and steel mills, where Goldman Sachs makes its money placing bets on people losing their homes, it's not surprising that they'll make money betting on food and water.

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Katie Boswell
4.2
by Katie Boswell - Apr. 30, 2011

Informative and insightful account of how the commodities market has distorted world food prices. Could have been even stronger if it had mentioned other factors at play, such as the growth of biofuels and the impact of climate shocks. It is the world's poor that ultimately pay the price for speculators' profits, the use of food crops for energy, and global warming triggered primarily by rich countries.

The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion ... More »

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Michael Shaver
4.0
by Michael Shaver - Apr. 30, 2011

Frederick Kaufman delivers a well-constructed essay on the history of the commodities markets and how these markets have changed and been manipulated by the barons of Wall Street into weapons of mass disruption. Mr. Kaufman focuses mainly on the agricultural commodities market by focusing on grain futures and their economic effects both domestic and worldwide. He presents his case very clearly and in an easy-to-read and understand format that is useful, informative and enlightening while underscoring the importance of this issue. This is an excellent piece that should be read by anyone who wishes to gain a greater understanding of the economic issues we are facing today.

Then, in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an ... More »

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Lynn R. Willis
4.7
by Lynn R. Willis - May. 1, 2011

The journalism evident in this piece seems good. The subject is complex but the author has done a good job explaining the nuances -- and consequences -- behind deregulation of the commodities market. The bottom line, of course, is that those of us at the bottom of the food chain -- you and me -- are getting the short end of the carrot, for which we're now paying lots more. No surprise there.

This is a depressing piece if, as the author suggests, there's no way to reverse this trend of "long-only trading in food commodities." What price greed? I guess we'll find out as time goes by.

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Don Bertschman
4.5
by Don Bertschman - May. 2, 2011
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Jack Powers
4.0
by Jack Powers - Apr. 30, 2011

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. More »

See Full Review » (3 answers)

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