Is Wall Street Driving World Hunger? - Derek Thompson - Business - The Atlantic:
'via Blog this'
In the last five years, the price of commodities like rubber, corn, and cotton have doubled, crashed, and then quadrupled. Is this a typical tango between limited supply and growing demand? Or have central banks and investors pumped the commodities markets with extra juice that makes their gyrations more violent?
In July, the St. Louis Fed looked at this very question. This synchronization of price waves across many commodities (see above) might suggest that our commodity price boom is "a bubble driven primarily by near-zero interest rates and excessive speculation in commodity futures markets." But it's more likely that market fundamentals are driving the high price of agricultural products and other resources, for at least three reasons:
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