Are speculators deliberately bringing the global economy to the brink ?

The last time this happened was during the Asian Currency crisis, when all the then so called ‘Tiger Economies’ were destroyed by speculation in their currencies. Who were these speculators ? George Sorros was definitely one of them. Who are these people that in the name of return on investment actively go out to destroy the livelihoods of millions of people ? With the rise in food prices all over the world leading to food riots, and now the sudden rise in oil prices that will completely hamper food distribution, the world is heading to the brink of economic turmoil. Both the rise in food and oil prices have not been caused by sudden shortages. They have been caused by immense speculation and trading in commodity futures. Remember that trading in commodity futures, rather than easing price fluctuations as economic theory teaches you, actually creates artificially high prices.


I am not saying that we should not have higher oil prices. It will help reduce greenhouse gas emissions in the long run. I am not saying that there are no inherent food shortages in this world. I am saying that the sudden rise (almost 30 % since the begining of the year) in both food and in oil, will create disruptions in the global economy that will lead to great social unrest. There will be an influx of large number of people looking for food into the metropolises of the world, creating an even greater imbalance in an inherently disbalanced distribution system for water and food, where the cost of transporting and packaging food for the more affluent in urban areas is tending to suck dry the rural areas.
However the affluent in the urban areas will suddenly find that they need to protect their affluent consumption patterns – especially things like bottled water – within armed and gated communities, leading to even more social unrest and conflict. I know this is a doomsday scenario, but it is what has happened every time there has been a major drought or famine. And the infrastructures in our metropolises are already at breaking point.

5 Responses to “Are speculators deliberately bringing the global economy to the brink ?”

  1. :) says:

    hi shekhar !
    what you are talking about is absolutely inevitable isnt it ? yet, is has not happened overnight…….! it is a systematic breakdown over years, observed and tolerated and accepted by people who are now suffering the consequences. often when friends discuss the current times we rarely overlook the fact that lifestyles today are determined by such superficial parameters, that it would seem as if people have lost both their self confidence (safety in the herd mentality ) as well as individual sense of style ! the actual cost of commodities used to be within the reach of people but it is the designer packaging and tags attatched to the same so that one feels socially accepted while buying the product whether it be food or clothes or shoes or ANY commodities (even at the cost of being ripped off and obviously fooled by the so called designers ) that is the undoing of most people.
    in a world where people are losing their sense of self to this extent…….there are always going to be shrewd manipulators who make the most of this weakness…….and make their living out of them. when the entire value system is off track for such a long period of time…….where the ones who knew better were not powerful enough to stop the erosion of values which resulted into new generations being born and brought up in the faulty system…….
    it is TOO late………and one can safely slot it as GHOR KALYUG……..and live on to see further deterioration !

  2. :) says:

    shekhar……..obviously the shortages are artificially created by the speculators and there is enough if released. yet, the corrosion is at a very deep level where the masses cannot reach anymore to have any say……..coz they have been sleeping for too long and not ONE among them came forward ( even if he did, he may have been silenced ) or was powerful enough to influence matters.
    it is a bad era ……..yet mankind as usual was given a long rope by nature……..which ironically he used to strangle himself ! i say that because the speculators are also members of this same universe and their loved ones or whoever they are trying to enrich , cannot escape the havoc caused by them !
    on a phylosophical note………a good era will breed good people to create it………while kalyug will breed these monsters to ensure destruction.

  3. Harb says:

    Yes, they are bringing the economy down but not deliberately lol.
    Anyway, I see a very very difficult times ahead…

  4. Navin says:

    And yes, George Sorros was probably the first entity to short the Indian market very heavily before it crashed in the month of January, 2008.
    Cheers!

  5. emory says:

    When trade takes the shape of war, as it has with oil speculation, war must shape the face of trade. Let us save the world’s oil dependent importing nations whose economies are devastated by these terrorists, drug trafficing trillionaires and George Soros. Activate our covert military operations and take them out.

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