Forum Post: Top Ten Ways Americans are Getting Squeezed: Report Shows Wall Street Driving Up Food, Fuel Prices
Posted 5 years ago on Dec. 30, 2011, 6:46 p.m. EST by fucorporatemedia
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Why have grocery costs grown so high? Just normal inflation right? Think again. How Goldman Sachs Created the Food Crisis Goldman Sachs and other bankers are gaming the system, driving the costs of commodities higher and higher with a derivative they made up just for this purpose “the Goldman Sachs Commodity Index”…just to make themselves more money.
In 1991, Goldman bankers 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 to be known henceforth as the Goldman Sachs Commodity Index (GSCI). For just under a decade, the GSCI remained a relatively static investment vehicle.
Then, in 1999, the Commodities Futures Trading Commission deregulated futures markets. Bankers recognized a good system when they saw it, and dozens of speculative non-physical hedgers followed Goldman’s lead and joined the commodities index game, including Barclays, Deutsche Bank, Pimco, JP Morgan Chase, AIG, Bear Stearns, and Lehman Brothers “You had people who had no clue what commodities were all about suddenly buying commodities,” an analyst from the United States Department of Agriculture told me.
In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since.
Hard red spring wheat, which usually trades in the $4 to $6 dollar range per 60-pound bushel, broke all previous records as the futures contract climbed into the teens and kept on going until it topped $25. And so, from 2005 to 2008, the worldwide price of food rose 80 percent — and has kept rising.
Why does it cost so much to fill the gas tank? Must be Peak Oil right?
How Koch Became An Oil Speculation Powerhouse From Inventing Oil Derivatives To Deregulating The Market – October 6, 1986: First oil derivative is introduced to Wall Street by traders at Koch. Koch Industries executive Lawrence Kitchen devised the “first ever oil-indexed price swap between Koch Industries and Chase Manhattan Bank. “Documents reveal that Koch is also participating in the unregulated derivatives markets as a financial player, buying and selling speculative products that are increasingly contributing to the skyrocketing price of oil.gas prices
Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least $27 of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand. Many experts interviewed by ThinkProgress argue that the figure is far higher, and out of control speculation has doubled the current price of crude oil. “
- U.S. Oil Exports Reach Record Highs; That’s Right…Exports
Why are my heating bills so out of control? See above.
Why is there a “housing crisis”?
- Goldman Sachs on mortgage crisis: ‘Serious money’ to be made
- Goldman Sachs Misled Congress After Duping Clients Over CDOs … Goldman sold AAA bonds they knew were “sacks of shit”, then shorted the bonds. The bonds were MBS- mortage back securities, mortgages, thousands of family homes. The more people that lose their homes, the more money Goldman makes. GoldMansacks appears to be trying desperately to snatch the most evil company award from Monsanto, as if they’ll get a prize.
- The case against Goldman Sachs
- Banks That Created Fake Demand Made Financial Crisis Much Worse – A ProPublica analysis published this week examines the extent of the “fake demand” created by major banks that sold lucrative mortgage-backed securities, and how the institutions fueled the economic crisis with their self-dealing
The Great Looting: Homeowners, Pensioners Robbed by Wall Street; Congress MIA - There is no doubt, the ‘foreclosure crisis’ was an engineered fraud enabling the banksters to scam money on both sides of the equation. Related: New Banking Chairman says Washington is there “to serve the banks“.
Rep. wants foreclosure investigation to ignore robo-signer controversy.
They used predatory lending practices to encourage people to get loans they couldn’t afford. They even cold-called people to get them to refinance a house that was already paid in full. Now a few years later they are trying to snatch that house out from under the family that has lived there for generations. And they did it on purpose! This happened over and over again. Why? The “securitization of loans” deal that allow the banks to bundle the bad loans, intentionally mislabel them AAA, then sell them to pension funds and other duped investors. Millions have lost big money in their pension funds because these fraudsters blatantly stole their money and the government did nothing about it.
Why are my electricity rates going through the roof?
- The People vs. Oncor: The Smart Meter Rebellion – SMART Meters overcharged customers when the interior temperature reached 100 degrees . The meters may have overcharged each customer over time hundreds or thousands of dollars, but PG&E will only rebate customers $40.00.
- Oncor (Goldman Sachs) to start Rolling Blackouts Across Texas … Enron Anyone? A Goldman Sachs Oncor? How cute.
- Utility rates surging nationwide
- Buggy ‘smart meters‘ open door to power-grid botnet
- Experts say smart meters are vulnerable to hacking
False Scarcity- Where did all the money go?
Across Europe countries are going “bankrupt” and governments are pushing bailouts and “austerity” measures on their citizens, stealing their retirement, enacting pay cuts, service cuts, all so they can pay the banksters interest. How are all of these major countries going bankrupt at the same time? Where did all the money go? In fact, there is no money shortage- these countries aren’t bankrupt- the governments and banksters have pilferred the treasuries and are now blaming it on the populace.
For instance, here in America Senate Leader Bill Frist’s family business, Billion $$ behemoth Columbia Healthcare paid a $2 billion settlement for overcharging medicare… but nobody went to prison, and Columbia still has gov’t contracts. They stole our money, and got away with it.
Almost half the $14 trillion debt is owed to the Federal Reserve, which is a consortium of private banks- ie half of America’s debt is to the banksters that created the crisis in the first place.
This a worldwide brawl for the future of the planet. The worldwide 99% needs the US 99% to step up and fight.
Your house, food, gas, heat, health care, electricity, water- all of your major bills are being jacked by just a few of the 1%. Americans are being squeezed from every direction, deliberately. It truly is about The Fall of the Republic. That’s their goal here in America, where do you stand?
REPORT SHOWS WALL STREET DRIVING UP FOOD, FUEL PRICES http://www.bettermarkets.com/reform-news/new-better-markets-research-report-shows-wall-street-driving-food-fuel-prices
Better Markets today released a new research report showing speculative commodity trading pushed by Wall Street is causing market disruptions that have increased prices for American families and farmers.
The analysis reviews commodity markets data over the last 27 years and shows that, since 2005, so-called commodity index funds have triggered an upward price curve in the futures markets when they trade out of an expiring month contract and into a new future month (referred to as the “roll”). This has resulted in rising prices and costs as well as a boom-and-bust cycle by changing the incentives of producers and consumers of commodities. It also has sent misleading and non-fundamental price signals to the market, which have disrupted the futures and physical commodity markets.
“This research report analyzes commodity market activity for more than 25 years and specifically analyzed speculative commodity index fund trading,” said Dennis Kelleher, president and CEO of Better Markets. “This is the first study to directly isolate the impact of the speculative index fund roll trading. The data shows the trading those funds do every month has severely disrupted and dramatically changed those markets, causing food and fuel prices to increase, hedging costs for businesses to rise, and prices to swing erratically up and down, which also raises everyone’s costs.”
“When this research and data is considered with Better Markets’ prior research on speculation, the need to ban commodity index funds is overwhelming,” said Mr. Kelleher.