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I never understood the problem with food commodity speculation. When bankers buy wheat in anticipation of higher prices and the prices in fact go up, the banker
by niklasbuschmann 4y ago
I never understood the problem with food commodity speculation. When bankers buy wheat in anticipation of higher prices and the prices in fact go up, the bankers successfully buffered supply by decreasing supply when there was more wheat and increasing supply when there is less wheat.
So for the banker’s actions to have a negative impact on the world, they necessarily must lose money on their trades.
And if the price should only increase because of the bankers, it will decrease again when they sell, it’s a zero-sum game minus trading and storage fees.