Banker, grain dealers blame hedge funds for risking wheat industry

[JohnWxy]

MOre of what you won't hear on the evening simulated news broadcasts on NBC, CBS or ABC. To listen to them ALL of this price distortion of food is because of biofuels. THey heard that at the bar down the street that's about how much investigation of the real situation they did.

All this reminds me of all that wonderful reporting they did as the BushReich leaders and their minions sold invading IRAQ to the country. All they did was jump on the bandwagon and cheer on the administration.




http://newsok.com/article/3220342/1206414521

" Wheat priced on a speculation bubble won't help the credit situation of farmers or grain elevators," he said.

"It's in no way a reality of what the real cash market or the new crop, what the real value is,” Tippens said. "It's almost counter-intuitive to what all of us know, almost to the point where I won't let customers use this tool (hedging) any more because it's so damaging to the market because we don't know what the price of wheat really is.”

The solution to wild price swings and prices far above what industry fundamentals would dictate would be to limit the number of bushels that hedge funds can control, both Tippens and Hampton said. Treat them as "speculators.”

"We need to get the index funds out,” Hampton said. "They need to be considered what they are, and they are speculators.”

[Warpy]

1. "Speculator" is too nice a word

When these fat money boys start playing games that drive up the price of vital goods like food and fuel, they're predators, not just speculators.

The IMF is the organization that needs to regulate these bastards, most of whom are headquartered in places like the Cayman Islands, away from central bank regulation around the world. The reason Wolfowitz was installed at the IMF was to head off this regulation, and it worked.

[JohnWxy]

2. I agree, speculator is too nice a word. YOur choice is better.