Gambling on food prices was a driver of the 2007-08 crisis and it’s time to take action against this practice, says Julian Oram.
I don’t consider myself to be an especially intuitive person and I’m pretty sure I’d make a lousy detective. But a few years ago something happened on an international scale which roused my suspicions: the price of food was rising fast.
Between January 2007 and June 2008, maize prices shot up by 74%, wheat prices by 124%, and rice by 224%. In Britain, this led to grumblings about the rising cost of a loaf of bread. But across Asia, Africa and Latin America, riots erupted as the price of basic foodstuffs became unaffordable to poor households and millions went hungry. It was, without doubt, a major world crisis.
Continue reading The case of the great food bubble