Is It True That Goldman Sachs Created The Food Crisis?

Many are blaming the current food crisis to the American culture of throwing good food away instead of feeding it to the hungry. Many are blaming the genetically modified crops designed to decrease the food crisis for the increase in the prices of basic foods. What many do not understand is why Goldman Sachs is being targeted as the main culprit to the food crisis.

It has to go back to Wall Street really. Economics is based on the basic law of demand and supply. But thanks to Goldman Sachs and their greed, the prices of food all over the world has skyrocketed to unaffordable levels resulting to a crisis that seems never ending.

Basically, it all starts with the simple and yet very basic need for food. The demand is very high, and Goldman Sachs decided that this high demand is therefore the best market to play around in. In the Futures Market, there are several players involved. One are the investors, the others are the farmers who produce the food, and finally, there are the speculators.

In the past, there were only two important players, the farmers who produced and the traders who played with the prices. This basically kept the prices low and kept the basic buy and sell patterns flowing smoothly. But Goldman Sachs only wanted to focus on one thing: the buy factor. This made the market look much like that of a stock investment, the kind where people can buy and then not sell for a long time until the price is right. This affected the market considerably, for it made the prices of food increase for the consumers who actually ate them.

Goldman Sachs did not believe in selling short, they only wanted to make more money that could only be made with the long wait. This created an imbalance and made the bankers keep buying and buying, further shooting the prices up. In due time, the increased prices attracted more investors, traders and speculators who ran after the money. Today, the prices of food have not dropped, all thanks to the new-fangled idea of Goldman Sachs to make more money out of food, no matter if the common people had nothing to eat due to the skyrocketing prices.