Quote: Ok, now that we all know (as I suspected all along) that you have zero concern solving the problem* of malnutrition & starvation under neoliberalism, there is no point to continue.
Look, Comrade, the original useless article posted in the opening post came from possibly the most Leftie site on the internet, Common Dreams. The article was originally published in Britain's Leftie newspaper, The Independent. The only UK paper I can think of even more to the left than The Independent is The Guardian, but to all intents and purposes one's as bad as the other. The article is itself an incoherent heap of gibberish, which is why I presume your own first post ignored it. Even you recognized it for the trash it was. After all, they couldn't even support their own premise. Let's do a quick dissection of this piece of dreck, shall we?
First, note the title --
Quote: Multinationals Make Billions In Profit Out of Growing Global Food Crisis Speculators blamed for driving up price of basic foods as 100 million face severe hunger
-- particularly the part I boldfaced... we'll come back to that.
Here's the first paragraph --
Quote: Giant agribusinesses are enjoying soaring earnings and profits out of the world food crisis which is driving millions of people towards starvation, The Independent on Sunday can reveal. And speculation is helping to drive the prices of basic foodstuffs out of the reach of the hungry.
So, businesses dealing in an area where demand is high (like the oil business) are making money. Why this is a bad thing is unexplained. But again we see the (as yet unsupported) claim that part of the increase in the price of foodstuffs is due to speculation. Remember this claim as we progress. Next paragraph --
Quote: The prices of wheat, corn and rice have soared over the past year driving the world’s poor - who already spend about 80 per cent of their income on food - into hunger and destitution.
So far, so good. Price of grain rising, poor hardest hit. Why is the price of grains rising? We shall find out, hopefully. Next paragraph --
Quote: The World Bank says that 100 million more people are facing severe hunger. Yet some of the world’s richest food companies are making record profits. Monsanto last month reported that its net income for the three months up to the end of February this year had more than doubled over the same period in 2007, from $543m (£275m) to $1.12bn. Its profits increased from $1.44bn to $2.22bn.
100 million more are facing hunger? 100 million more than when? Last year? Ten years ago? It's a mystery the reporter seems unable to answer, but let's move on to the numbers. Am I the only one who sees a problem here? Look at those numbers again, folks...
Yep. Somehow, Monsanto managed to post a profit higher than its income. Twice. First it managed to generate 1.44 billion profit from an income of just 543 million. Then it managed to generate a profit of 2.22 billion from an income of 1.12 billion. Monsanto has managed to do the impossible. Literally. Twice now. What a management team! I kick myself in the ass for not having bought Monsanto stock.
Next paragraph --
Quote: Cargill’s net earnings soared by 86 per cent from $553m to $1.030bn over the same three months. And Archer Daniels Midland, one of the world’s largest agricultural processors of soy, corn and wheat, increased its net earnings by 42 per cent in the first three months of this year from $363m to $517m. The operating profit of its grains merchandising and handling operations jumped 16-fold from $21m to $341m.
I am no longer certain this reporter should be trusted when it comes to numbers, but let's assume for the sake of argument that these numbers are accurate. How are these numbers indicative of anything nefarious? Or even of "speculation"?
Quote: Similarly, the Mosaic Company, one of the world’s largest fertiliser companies, saw its income for the three months ending 29 February rise more than 12-fold, from $42.2m to $520.8m, on the back of a shortage of fertiliser. The prices of some kinds of fertiliser have more than tripled over the past year as demand has outstripped supply. As a result, plans to increase harvests in developing countries have been hit hard.
I realize the concept of supply and demand is foreign to Lefties, but come on, folks! Nothing nefarious - or even mysterious - going on here.
Quote: Benedict Southworth, director of the World Development Movement, called the escalating earnings and profits “immoral” late last week. He said that the benefits of the food price increases were being kept by the big companies, and were not finding their way down to farmers in the developing world.
Immoral. Uh huh. The Leftie credo is that you are only allowed to profit from providing stuff people don't actually need. Make money from oil? Food? Medical services? You're a greedy bastard. Make money from selling teddy bears and romance novels? You're golden.
Quote: The soaring prices of food and fertilisers mainly come from increased demand. This has partly been caused by the boom in biofuels, which require vast amounts of grain, but even more by increasing appetites for meat, especially in India and China; producing 1lb of beef in a feedlot, for example, takes 7lbs of grain.
World food stocks at record lows, export bans and a drought in Australia have contributed to the crisis, but experts are also fingering food speculation. Professor Bob Watson - chief scientist at the Department for Environment, Food and Rural Affairs, who led the giant International Assessment of Agricultural Science and Technology for Development - last week identified it as a factor.
Aha! In addition to all these main factors -- including government interference (biofuel subsidies, export bans) we finally get to hear from "experts" that food speculation might also be a minor factor. So what is the first expert this yutz of a reporter trots out? Not an economist or a market analyst or a forensic accountant, but a scientist in some government agricultural department! Okay... let's see what he has to say. Just how much of the increase is due to speculation? Next paragraph --
Quote: Index-fund investment in grain and meat has increased almost fivefold to over $47bn in the past year, concludes AgResource Co, a Chicago-based research firm. And the official US Commodity Futures Trading Commission held special hearings in Washington two weeks ago to examine how much speculators were helping to push up food prices.
Okay, now we have not just Professor Watson who will tell us how much of a factor speculation is when it comes to rising grain costs, we have the official US Commodity Futures Trading Commission. They held special hearings. Let's see what the special hearings discovered --
Quote: Cargill says that its results “reflect the cumulative effect of having invested more than $18bn in fixed and working capital over the past seven years to expand our physical facilities, service capabilities, and knowledge around the world”.
Yes, yes, Cargill... we know your income and earnings have risen. SHut up and let us hear what Professor Watson and the US Commodity Futures Trading Commission discovered.
Quote: The revelations are bound to increase outrage over multinational companies following last week’s disclosure that Shell and BP between them recorded profits of £14bn in the first three months of the year - or £3m an hour - on the back of rising oil prices. Shell promptly attracted even greater condemnation by announcing that it was pulling out of plans to build the world’s biggest wind farm off the Kent coast.
The revelations? What revelations? I see no revelations from Professor Watson or from the US Commodity Futures Trading Commission. Final paragraph --
Quote: World leaders are to meet next month at a special summit on the food crisis, and it will be high on the agenda of the G8 summit of the world’s richest countries in Hokkaido, Japan, in July.
So where's the beef? The title claims it's the fault of greedy speculators that food prices are rising. The first paragraph claims speculation is helping to drive the prices of basic foodstuffs out of the reach of the hungry. Paragraphs nine and ten also claim speculation is involved in rising prices. But nowhere does the author of this piece of shite support his claim. We are to take it on faith.
You see, EP, this is why I didn't bother to address the article - there's nothing to address. It's empty verbiage. The only time the author tries to deal with actual hard facts (income and profits) he fucks it up completely. That's why I didn't get involved in the thread till you made your first post - which had absolutely nothing to do with the topic of the opening post, by the way. Your post at least opened the door to some discussion: you professed yourself unable to grasp how people could justify growing what they chose on farms that were rightfully theirs.
And we took it from there.
You are right there is no point in continuing discussing the article from Common Dreams, since it is a confused piece of gibberish. And you're certainly right there is no point continuing to discuss your Commie "solution" of seizing farmland from whoever chooses to grow stuff you don't feel they should be growing.
See you in the next thread, then.
Phred
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