EXCERPT: Loose-money policies in the United States have combined with robust growth in China and other emerging nations in recent months to set off a price spiral in food, energy and other basic goods needed to run the economy. The trend threatens to pick up speed and become an obstacle for the global economy this year as growth in the United States accelerates to as high as 4 percent and contributes to burgeoning demand for basic goods obtained in global markets.
The chain reaction behind the phenomenon is reminiscent of the commodity-price spiral that occurred in 2008, which led to record-high prices for oil, corn, wheat, copper, iron and other necessities. China, in particular, is playing a key role in translating the Federal Reserve’s loose-money policies — aimed at reviving the U.S. economy — into global commodity inflation through its policy of linking its currency to the U.S. dollar.
EXCERPT: In mid-2008… potash prices spiked to nearly $1,000 a ton. Yet just two years before, it barely managed to hit $150. Today, potash is a hot commodity once again. Rising incomes in emerging markets have changed eating habits, increasing demand for foods and thus for fertilizers…
MTO is a cooperative of more than a dozen organic farmers who have pioneered production of organic commodities like beans, spelt, popcorn and who are moving into direct sales of vegetables to chicken at farmers markets. This film captures the wisdom of their approach and describes their cooperative.
This video was created by filmmaker Chris Bedford. Check outChris’ YouTube Channelfor more of his excellent and compelling videos
“With the financial crisis fading into the past, speculation on agricultural commodities markets has returned in force. Food prices are climbing once again as hedge funds rediscover the immense profits that can be made — led by a British chocolate baron.”