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There are two main ways in which decision-makers are insidiously interfering with the normal rules of supply and demand for raw materials and a myriad of different small. You leave aside the smaller as tent China to take advantage of its monopoly metals rare earth geo-political purposes and focus instead on the two elements.

One is ultra cheap money policy in the advanced economies to fight the economic crisis;and other, more specific products, massive public subsidies for the production of biocarburants.Aliments is being neglected off by continuation of the "clean fuel".

As long as reserve remains accommodative u.s. Federal, commodity prices are likely to continue to increase.We do amounts yet return what whatsoever as extremes in 2007/8.Cours $ 140 oil bubble per barrel, it will be recalled, were contributing to tip the economy into recession.Yet according to the historical standards of long-term, food prices and minerals are always exceptionally high and more.

The underlying reasons are connus.Rapide industrialization and urbanization in the developing world has created a 'super-cycle' which facilitate embossing after one against the limits of their potential croissance.La most countries would agree that there is some way to go.

In this set-match already troubling between finite growth offers and demand stumbling Fed with a policy of loose money of unprecedented proportions.

The effect of this increase in the monetary mass manufactured may or may not be in support of domestic demand, but it certainly divert money and that many products are marketed globally in dollars, it animates their higher prices.

For countries whose currencies are appreciating against degrading dollar, it should not be a large différence.Si dollar price rises a quarter, but the euro appreciated by a fourth, European nominal price remains the same.

But in America, other degrading countries such as the United Kingdom and Asia, trying with degrees of success to peg their currencies to the dollar, much is important and is significantly inflationary.

For this distortion must be added financial speculation.Since long time disappeared are the days where the products were purchased only for purposes of things and feeding masses.

In total more ingenious ways to leverage these materials for the purpose of making money first since have been found.Today products are also sold hard as an "asset class" for purposes of investment than the stock feed bread, cars and bridges.

The quantitative easing has already attracted records entries of money funds link, which is what you would expect under conditions of .the negative real interest rates ' influx of funds in markets commodity - much the same kind of bet - has so far been relatively modest by comparison, but it is rapidly rising.A study by the World Bank has found "that the use of the goods by financial investors (the so-called" financialisation products") could be partly responsible for 2007-2008 spur".Imaginez what happens to occur once the trade gains mass appeal.

Metals are one thing, but food prices appear to be victims to influences similaires.Le OECD report provides that at the end of the Decade, means wheat and cereals secondary, prices will be higher real from 1997-2006 40pc 15pc.Reduced, like fresh food supply and demand will be much the same thing for the price of cattle, while dairy products are predicted increase of until 45pc.

For defence of these higher prices, one could say that they ration at least demand and encourage the investissements.En any case, there is not a great deal makers can or indeed should be on their underlying cause increasing prosperity in emerging market.

But that they should certainly not do is further exacerbating the situation with massive subsidies for the production of biocarburants.Jamais one more use of crops and agricultural land which their product for the production of biofuels began seriously to undermine food.

When from a recent Conference, Chicago Mercantile Exchange, Ian Goldin, former vice President of the World Bank today Director of the school of Martin Oxford called these policies "economically ignorant, destructive environmental myopic politically and ideologically suspect".Peu outside of biofuels lobby would disagree.

And yet in the mistaken belief that ethanol and biodiesel can help solve the problem of energy security in a neutral way of carbon, Europe and the United States are piling grant as it goes mode.Les grants a few billion $ per year would be doubling once more to achieve targets for biofuels that Governments are sorting.

In addition to the inflation of prices of food, agricultural land for biofuel use is incubation its own environmental disaster of deforestation for excessive use of fertilizers and pesticides.

It has no mess, sometimes, as bad as the intervention of the Government is not go worse encore.ingérence with money supply and the use of agricultural land for the production of fuel may appear two case.

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