Peter Schiff: Quantitative easing driving up food prices
19 May 2011

Economic and finance ministers from the G-20 nations are meeting in Argentina to discuss the increasing volatility among food and commodity prices.

The goal is to discuss and create policies aimed at increasing the global supply of commodities to keep up with increasingly demand.

However, discussion may be tense as both Argentina and Brazil oppose plans put forward by France and other countries who wish to regulate the price of commodities. They argue that producers are not at fault and that Wall Street and speculation are to blame.

Food prices are no longer established based on the traditional economic notion of supply and demand for a traditional market demand. Instead speculation markets created and controlled by Goldman Sachs control global food prices.

Peter Schiff, the president of Euro Pacific Capital explained that the volatility in the commodities market is caused by nations who print too much money and debase their currencies.

We [United States] are the leader. The rest of the nations seem to be following in our footsteps, unfortunately,” he said. “The more money they print the higher the prices are going to go.”

Volatility is part of the market, he noted, but irresponsible monetary policies make the markets more volatile and drive prices up.

If they want to put an end to the upward trajectory and the volatility they need turn off the printing presses, they need to let interest rates go up,” Schiff added…

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