DeaconTheVillain Posted March 25, 2011 Share Posted March 25, 2011 This is essentially a difficult and complex question and I would appreciate if someone could give me an elementary answer. I was watching Stephen Colbert last night and he had on someone who was talking about how speclators were driving up the price of food. Also, disasters in Russia (specifically related to wiping out lots of corn fields), Pakistan, and floods in Australia have had an impact on the global food crisis which is going to get a lot worse. What I don't really understand is when the lady was talking to Stephen saying how speculators were driving up the prices. This made me think back to when speculators were also "driving up the pirce" of gas a few years back. 1. Speculators are just investors who buy futures stock right? If so, how do they control so much and have an impact on something like food. If guy A buys futures in corn. How exactly does he do that and what does he do? Does he buys shares in Dekalb (for example) to get a ROI in the future because he is essentially predicting a rise in cost? I really don't get how futures work. And, from what I understand futures are speculation right? 2. Do these speculators get rich off of mass suffering? That is what it seems like. I mean when about 90% of the world goes to bed hungry. These people get blamed for the price hike. Link to comment Share on other sites More sharing options...
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