On Feb 16, 2011, at 12:36 PM, brad wrote:
> As Peter said the transcript is under the video. I cut and pasted the
> part relevant to the discussion last week about the role of
> speculation in running up prices.
>
Any role of speculation in "running up prices" is absolutely offset by
an identical role of speculation in "running down prices."
> ...In fact, what happened in 2008 is a classic example, where the
> food price went up by--almost doubled in the period between January
> and June, and then fell back to almost the previous level in the next
> six months...
> ...what specific things are
> going to be put in place that will actually have teeth to actually
> inhibit the kinds of excessive speculation that is driving up food
> prices and making people go hungry. That's the issue...
But there's another, formally identical issue: What about the speculation (what exactly is the difference between "excessive" and appropriate speculation?) that drives down prices and lets people feast?
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90