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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Kayaker who wrote (153375)6/29/2011 11:04:33 AM
From: elmatador1 Recommendation  Read Replies (2) of 206116
 
Who is to blame for the price swings? financial markets, which “had contaminated commodity markets.”

Unlike most other senior UN food officials, he was willing to put part of the blame on the financial markets, which “had contaminated commodity markets.” While there is huge debate about whether financial speculators are behind the sharp ups and downs in food commodity prices, there is no doubt that “financialization of commodities,” to borrow an economists term, is underway. According to the U.S. Commodities Futures Trading Commission, the value of commodity index-related instruments (from oil to soybeans) purchased by institutional investors in 2003 was $15-billion (U.S.). In 2008, it was $200-billion.

theglobeandmail.com

Do not blame the producers who actually invest and risk to get oil to the market.
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