Wed 18 May 2011
Those speculators driving up or down prices must be stopped
Whenever prices in stocks, bonds or currencies go to a level where the prices are causing pain it is always speculators that gets the blame.
It is fairly ridiculous to blame speculators and not look at the big picture. Is there a lot of money printing or regulations and taxes straining the supply? Of course not.
Howard Schultz, Starbucks chief thinks speculators are taking the coffeecup away from the people
Howard Schultz who grew Starbucks’ from four stores in Seattle to more than 17,000 worldwide says it is a need for more transparency to identify the speculators driving up the prices.
“The current spike in the cost of commodities such as coffee and other foodstuffs is “not based on supply and demand” but based on market speculation.”
“Right now we are experiencing a very strange and almost inexplicable phenomenon in the commodities market. Without any real supply or demand issues we are witness to the fact that most agricultural food commodities are at record highs at once, and coffee is at a 34-year high.”
“Through financial speculation – hedge funds, index funds and other ways to manipulate the market – the commodities market is in a very unfortunate position. This has resulted in every coffee company having to pay extraordinarily high prices for coffee.”