HIST 11B Chapter Notes - Chapter N/A: Derivatives Market, Pork Belly, Carbon Credit
Document Summary
=financial speculation in food commodities has become one of the main drivers of food price volatility, with devastating impacts on small producers and the poor. Yet the disruptive influence of financial speculation on food markets is only a preview of future crises. International financial markets are now attempting to dominate many conventional markets as a long-term strategy to extract greater profits and accumulate capital. =the systematic financial speculation on commodities (and its systemically influential increase in recent years) has been driven mainly by deregulation of derivative markets. Speculation has also soared as investment banks, hedge funds and other institutional investors have jumped into the derivative market, often introducing new financial instruments such as index funds and exchange-traded funds. =until the beginning of the 2000"s, holding a ton of corn could not produce a revenue stream or rent, other then from sales based on market prices.
