Forum Post: Rise of the High Frequency Trading Robots /// High-FrequencyTraders & Momentum-Driven Hedge Funds made it their Business to Speculate on Food in 2011 /// Bankers Hedgefunds & Sovereign Wealth Funds Gambling on Hunger by Speculating on Food Supply
Posted 3 years ago on Dec. 20, 2011, 7:55 p.m. EST by MonetizingDiscontent
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Rise of the High Frequency Trading Robots
-February 07, 2012-
You can watch an animated GIF that chronicles the rise of the HFT Algo Machines from January 2007 through January 2012 by clicking on the link.
(((Animated GIF))): http://www.nanex.net/aqck/2804.HTML
Mike "Mish" Shedlock - I do not know enough about algorithm-driven High Frequency Trading to comment intelligently other than to say 100% without a doubt that someone is making a huge pile of cash from HFT or it would not be done.
The GIF starts out slow and boring, but watch the progression through to the end.
Bio-fuels, Speculation, Land Grabs = Food Crisis
New report calls for sweeping agricultural reform
-January 18, 2012-
Friends of the Earth accuses major banking groups, including Deutsche Bank, Barclays and HSBC, of engaging in practices which drive up food prices
-January 12, 2012-
Friends Of The Earth Accuses Banks Of Causing ‘Catastrophic Instability’ In Food Markets
The Speculative Scrum Driving Up Food Prices
High-frequency traders and momentum-driven hedge funds made it their business to speculate on food in 2011.
-20 December 2011-
...."Prices have been way out of equilibrium in 2011," Bar-Yam told me. "The bubble has not burst yet."
According to Bar-Yam, the international thirst for biofuels has put a strain on arable land previously reserved for food production. At the same time as the rise of the biofuel mandate, the rise of investable commodity indexes and other electronically traded funds has offered investors of all stripes a chance to sink their cash in a sparkling new casino of derivative products. As a result, an ever-flowing spring of speculative capital sustains the status quo.
But just as food is no ordinary widget, speculation in commodity markets is not simply a matter of financial predation. "The high prices of food have resulted in accumulations of inventories at the same time as people can't afford food," said Bar-Yam, who noted that the Arab spring was triggered by the food-price bubble. In fact, Necsi's quantitative model of speculation predicted the uprisings in Tunisia, Libya and Egypt, and warned that if food prices remain inflated, riots and revolutions will go global sometime between July 2012 and August 2013.
"We are at a critical point," said Bar-Yam. "We don't have a stay-the-course option right now."
He believes the time has come for global regulators to step in and manage the global market. Their first task would be to guarantee transparency and make public information previously shrouded in secrecy – such as who holds the biggest stakes in global commodities. Transparent accounting practices would have made the disappearance of $1.2bn worth of customer money from the books of MF Global... http://www.dailymail.co.uk/news/article-2071686/Jon-Corzine-apologises-MF-Global-clients-1-2-billion-money-remains-missing.html ...less a matter of sleight of hand and more a matter of international crime...