SOC 808 Lecture Notes - Lecture 10: Micronutrient, Server Message Block, Making Money
17 Apr 2017
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2007-2008 crisis -> within 3 months, we were paying triple the price. All cereal prices increased simultaneously: rice, wheat, corn, soy. Prices fell sharply after 2008 and climbed again and hit a new peak in 2011. Prices rise as us $ falls attractive to investors invests in future contracts investors no longer just farmers/agri. traders many investors price increases. Therefore, not just supply & demand issue, but a bubble" issue based on future speculation. Prices rise as us $ falls attractive to investors: 1. commodity futures contracts: a tradable contract that promises future delivery of a commodity at a given price, 2. Commodity index funds (cifs): financial products sold by banks that are based on commodity price indices: 3. Commodity speculation: the trade in commodity futures investment products for the sole purpose of profiting financially from commodity price changes. Food shortages: rotting rice in thailand, rotting grain in india.
