Ex-fakecharity still talking rubbish

From the BBC:

Greater regulation of the food market should be introduced by the government to stabilise food prices, according to an anti-poverty group.

A World Development Movement report said banks which caused the financial downturn created volatile food prices. It said bankers poured money into commodities like wheat and maize after giving up on failed mortgages.

Banks have argued that food price rises are due to increased demand from China and the use of bio-fuels. Basic food prices increased in 2008 amid the global financial downturn...

It is quite true that speculators can drive up the price of a commodity in the short term (like the oil price bubble of 2008), but the bulk of their profits come at the expense of other speculators. Yes, food prices went up in that year as well, but by and large they have all gone down again as well.

Producers, who are always net sellers will tend to gain slightly from these bubbles and consumers may overpay slightly in the short term, but don't forget that the cost of the flour or the crude oil is only a small part of the cost of bread or of the pump-price of petrol, so the overall impact is barely noticeable.

It also begs raises the question of what on earth 'the government' is supposed to do to regulate the forward sale agreements in other countries.

PS, last time I look at the World Development Movement they were a fakecharity, but there don't seem to be any taxpayer funded donations in their most recent accounts for 2008. So that makes them an ex-fakecharity.