[lbo-talk] Food Prices Again

Shane Mage shmage at pipeline.com
Thu Feb 17 18:59:06 PST 2011


On Feb 17, 2011, at 8:52 PM, brad wrote:


>
> @ Shane: How do you account for the run up and then run down in
> commodity prices in 2007-2009? Take wheat, which had a bumper crop
> and huge surpluses, what caused its price to more than double only to
> fall back down 9 month later. There is no way to explain this with
> fundamentals.

On the contrary. The "fundamentals" explain the price *before* and *after*. *During*, a zero-sum game [speculative profit and loss] accounts for the [economically random] fluctuations.

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



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