food is expensive!
futures contracts: Aigner wants to trade restrictions for agricultural commodities , provoking hunger deaths
Ralph Bärligea
She believes himself or gives, so to secure the World Food
The Federal Agriculture Minister Ilse Aigner occurs "once and for price limits in the trade in raw materials and also demanded so-called position limits set a ceiling of futures contracts of individual market participants, "as the" Financial Times Germany "currently registered. Aigner meets this on the international stage with the Agriculture Ministers of the world, as she announced proudly, pretending, the "world food security" to achieve. In fact, it kills with this policy directly people, for example children in Africa. To the logically coherent to prove only a small article is necessary, but first I have to in ten sentences to explain what the devil wants to limit the Aigner, these futures contracts here and there derivatives. The real cause of price increases and price volatility of agricultural commodities, I show concludes. Because the subject again and again, permanently in their repetitive and escalating stupidity of that incorrect, the truth is the opposite twisting type as now handled by Ilse Aigner, I feel compelled to a comprehensive article that I have been so on this issue not have found.
What are futures?
futures contracts, for example, option contracts. These are on something here in this case, agricultural commodities, such as buying or selling options for wheat. Forward contracts are called futures, if they are standardized, if not, they are called Forward Contract and both mean that a contract Closed for the future: therefore, the word futures contract. The purchaser buys a call option as the right to buy a particular product in the future at a predetermined price. Thus, a magazine subscription is a contract for the future, so a forward contract. What is the one for the right to buy an option has a certain thing in the future either to sell or is, for the other party a duty, an obligation, for he must deliver to the business underlying commodity at the agreed price. That is exactly reversed. Depending on how the price of the case developed, it pays to exercise the option, or you will void it, in the worst case So you lose the fee you have paid for the option. If you hold as an option to purchase the one hand to a bushel of wheat right at the end of the month for 12 - to buy $ and the price of wheat is on the said date only 10, - $, then the call option is worthless, the price is 14, - it is $ 2 - $ value and deserves the support of option 2 - $. The relevant contract partners, provide the option to buy the underlying commodity has to make, but in the last case 2, - $ loss.
What are futures contracts well?
act Market participants have different expectations about the future and risks. A country with lower income purchases might call options on wheat, in order to guard against too high wheat prices, so that people with a bad wheat harvest, which led to a shortage of wheat supply and thus in higher prices starved, not because you can afford the higher prices can not. Each supply contract, each subscription is a Forward Contract. Futures can regulate our Isle Aigner good state, but not the Forward Contracts. So they can regulate anything, fortunately, but they more expensive then the transaction costs, because you can only trade the standard cost of the futures market, while forward contracts due at the higher fees because they just do not are standardized and are traded over the counter. "In this particular case, this means that more expensive for the poor country now risk hedging through options. Again, the poorest of the poor, who can not afford risks and not so options need to be pressed. The same goes for when option contracts are taxed because the taxes just like the higher fees when trading over-the-counter costs and more expensive option.
futures can not affect the prices of real goods
In the end somebody has to have the real wheat, no matter which futures contracts were traded and at what prices. Forward contracts may finally the amount of available wheat, which influence the supply not be motivated. Only and only supply and demand of real wheat on the market determines the price of wheat in and not the futures contract on wheat. Conversely, determines the price of wheat the price of futures contracts, here is cause and effect mixed up, but I show later. The wheat does not matter which futures contracts are traded, just there and have some time on the market, because otherwise it rots. Wheat is naturally preserved for some time and may be stored and not sold. Critics say it disparagingly of "hoarding". Yes done that and that is arbitrage between different points in time.
"speculators" to keep agricultural prices save stable and so lives
arbitrage between different points in time is to buy cheaper than you sold. In the end, leading to a stable price. Whenever there is a very high price as wheat is through such an above-average harvest, prices fall and then buy the arbitrageurs, which increases demand and therefore the price again. The arbitrageur now overlays the white, he is "hoarding" as the hamster. In bad times, when supply drops, perhaps because there is no harvest in the winter, or a natural disaster occurs spontaneously, prices rise. Well weathered the arbitrageur his business and sold the stored wheat, but which increases the supply again and prices fall again. This creates a stable price in the market. The arbitrageurs buy and sell as long as between the various time points until the prices converge over time and to eliminate profits can benefit from the price differences. The so-called "speculators" makes available for a rainy day. It prevents wastage in good times when he buys goods and stores, if it is available in abundance. It provides the necessary range in bad times, where he intends it to something higher but to sell its wholesale prices in good times. It is an honest and useful business and the arbitrageur has thereby storage costs and is taking a risk because he price developments in the future can judge wrong. Same time, an arbitrageur or dealer is in competition with other brands. In the media to lie but the majority, saying that "speculators" lead to price fluctuations and crises. The opposite is the case. "Speculators" stabilize prices and same real crises, like the wheat as the over harvesting to drought, from .
Ilse Aigner "regulation" can vary the price and kills people
If Ilse Aigner sets ceiling prices for agricultural commodities, buy the "speculators" good any wheat harvest in times more because it is no longer worthwhile to sell the wheat harvest in bad times or disasters. One can not demand higher prices more. This reduces but even in good harvest, the wheat demand by so-called "speculators", whereby the price of wheat is very low due to lack of demand and wheat waste, maybe even burned becomes hot or surpluses simply rot on the field. In bad times, you then have no inventory and real people die of hunger. It hits containing the poorest, the other just buy at higher prices, which can make the poor do not die then. affected are children and single Women with many children. The images of Africa we know.
It's not fair to attack Ilse Aigner ensure that these children die because it gives the impression that it is good to think well and truly, as the Minister knows nothing about their craft. Aigner affects many as an honest, friendly woman. But there are politicians, such as Wolfgang Schäuble, who understand the relationships shown safe and support this policy, however strategically. Positive? The starvation deaths lead to a reduction in world population, saving hypothesis, according to official resources and the climate. What happens is it perverse. In practice reduce the trade in food, what the people their Food supply cut off and so some wasting away. The economic and logical analysis can be no other verdict. Germany and developed countries of starvation usually not affected because they can buy at higher prices. This policy also destroyed their wealth, because in good times as resources are wasted, then the rise in bad prices and less money for other things remain, such as for education.
The goods prices affect the price of the futures, not vice versa
Education And we would really be necessary if we believe, could drive up futures prices of wheat to the top, as in the media for years is heruntergeleiert, especially here, Heiner Geissler, the "social conscience" of the CDU. It seems the nonsense to believe. options and futures contracts generally have however shown no effect due to the price of the underlying commodity. On the contrary . the price of the goods that the option implies, the price of the option example, if someone is holding a call option, which he entitled a bushel of wheat for 10, - $ at the end of the month to buy and to this date the price of wheat is then 9, - $, the option is worthless If the wheat price at 12 $ is the $ value Option 2
The real cause of the price increases are the central banks
.. The only one who is driving prices up, is the state itself, the U.S. Federal Reserve has in the economic crisis, it has itself caused more than doubled the money supply. The European Central Bank has reacted similarly. Of course now, prices are rising, as well as for wheat. And because the freshly printed money for the poorest at the end of Africa last arrives, the price of wheat to rise but before, as the first recipient of the newly printed money to buy with their money more wheat to feed as their pigs to starve the poorest erst. We call this mode of action in the economy Cantillon effect. The effect is rarely shown in the context shown. At the end harm this "policy" of printing money but also the rich countries. If that is now the price of wheat to rise at last, more expensive that even the pigs and then remember also the rich that they can not afford so many pigs do not and many pig farms have nothing set up. It turns out that these investments have no value because the demand for the products they produce is missing. If the central bank but not the demand, thereby distorting the prices, it would be the bad investments never came and one would have to invest in things that are urgent. The pigs are just one example, the relationship shown is However, the entire real estate and economic crisis basis, which was caused by lax monetary policy of central banks after the bursting of the Internet bubble. The Internet bubble was itself triggered by lax monetary policy front. We move from bubble to bubble and bubble to bubble, we are poorer. At the same time we waste so resources and pollute the environment unnecessarily. This is due to the economic crisis theory and the Austrian School of Economics of Ludwig von Mises and Nobel laureate Friedrich August von Hayek, the mere fact that people act, logically proven accurate. The books to be freely available, only in public schools and universities, the Austrian School nowhere taught. Why not?
Summary of learning
summarize what we have learned. Speculators stabilize prices and not lead to price fluctuations, as the media claim the majority wrong. Futures, whether present options, bonds, futures and forward contracts, all derivatives and pure financial transactions denominated only in real goods, real goods themselves are not, however, but tradable contracts can not influence the prices of goods. On the contrary, affect the prices of goods logically the value of these securities. Ilse Aigner saves by their price restrictions on agricultural commodities, and the difficulty of trading of futures contracts not people, small children and babies in poor countries, but kill them. Actually save capitalism and the free market small children and babies, even and especially in Africa, because the despised "speculators" really are and to make precautionary only and only profit when they make provisions good buy, really, if the Prices are low and excess reigns and then sell when prices are high and shortages. there is a "speculator" who does the opposite, would drive up but actually the price and error is not excluded, but he was losing money, would soon collapse and could not be driving too long to continue.
Finance Minister Wolfgang Schäuble, the nasty speculators
But God willing, we have the Finance Minister Wolfgang Schäuble, who was kind enough to save himself verspekulierenden banks so that they can always make more of the same order for capitalism perverted is. This is also more and more pointless and loss-making futures contracts are traded, which actually have the potential to drive prices upward. Yes guarantees for loss of tax payers. It will put together a rescue package after another, first for the banks, then the states that they saved. The citizen is then pressed to the maximum tax, he works more than two-thirds of his time to the state, which takes the money, which he then destroyed the prosperity of all secondary and as we have seen even killing people in developing countries. The 0.4 percent "development aid" from the gross domestic product, Germany is making is, however, a joke, even harms itself or because they planned economy failed investments in developing countries provoked displace other investments, or as a planned economy usually equal flows directly into the corruption . And because the tax is already at the maximum squeezing is printed hard money, get what the banks and banking executives as the first and so become rich without its own power. producers all money is the central bank, which generates all the money as a loan and a lender of last resort, the bankrupt banks and bankrupt states in any amount, with the motto "The more broke, more money" supplies. makes only and only this institution, it with her forever inexhaustible funding streams possible that the price level of money supply growth is increasing permanently and for the welfare policy of annihilation of the quasi-state banks and governments have enough money is there to Africa hunger and Germany technology and demographics at the end is.
Tell your fellow man, who really is to blame for the crisis!
The state-monopoly-capitalist and public service Media that are financed in the last resort after all always from the pots of central banks, but continue to lie and say naughty the opposite of what is true, good call evil good and bad. What's in this article, each of the thousands of dealers in the world knows, and knows every qualified industrial sales. Only in the media say it is not here to stage rather dilettante, half-knowledge and conspiracy theorists such as Dirk Muller, who, like many other makes a real marathon campaign by the media with his nonsense, he gives of himself. And at the state-funded or accredited universities learn the simple correlations not that I show here. The Austrian School is not even mentioned. Why not? Spread on this article, please send it to friends and relatives and also to Ilse Aigner to see this and understand who really has the debt crisis and the children and people in Africa and in the poorer countries can die in this world and the Wealth of Nations, also with us, break something.
http://ef-magazin.de/2011/01/24/2819-terminkontrakte-aigner-will-handel-mit-agrarrohstoffen-einschraenken-und-provoziert-so-hungertote
food is expensive!
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