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are accused hedge funds gambling with the lives of the poor, as food prices soar. Anti-poverty activists have re-charged to financial speculators, because betting on prices of food, which has led to a rise in prices of foodstuffs such as coffee and chocolate,
and threaten the lives of farmers in developing countries. The World Development Movement (WDM) issued a report condemning the growing role of hedge funds (hedge funds) and banks on the commodities markets in recent years, in which the price of cocoa has doubled the price of energy is increased and the price of coffee has fluctuated dramatically. Charitable agencies have demanded that the British financial regulator is examining how the U.S. ended the speculation, after a series of rises in cocoa, which reached a record high in three decades, after it was discovered that a London hedge fund had taken over most of the reserves of this raw material in the world. According to traders, the firm Armajaro has taken control of 240,100 tons of cocoa, the largest number of Liffe London in 14 years, equivalent to 7% of global production. For merchants, this speculation has resulted in an increase of 150% in the price of cocoa in the last 18 months, so have had to increase the price of their products, and reducing the quality by using less cocoa. The report of the WDM, "the lottery of famine" states that risky financial bets, secret and food prices have exacerbated the effect of poor harvests in recent years. It discusses the volatility of food prices has complicated the planning of crops to farmers, driving up prices for consumers, and threaten social stability in poor countries, such as the riots that took place in Mexico and Haiti in 2008. "Investment banks like Goldman Sachs, get great benefits from playing with the prices of staple foods. But consumers are running out of money, and there is a risk that people in poor countries starve" . "No one benefits from this kind of reckless wagering, but a few brokers bag. Consumers are affected because inflation increases due to the unpredictable price of oil and raw materials, and the population of the poorest countries suffer, because the most basic foodstuffs are unattainable. "The group used figures taken from annual reports of Goldman Sachs, to calculate that the firm received a benefit than a billion dollars annually from speculation on food prices. However, the bank said that most of its operations are orders of raw materials customers, and the figure estimated by the WDM is "ridiculously exaggerated." NGO has urged the British government to take leadership in the European Union in demanding more transparency and strict controls on commodity markets. WDM says 800 people have pledged to call the Financial Services Authority Surveillance to complain about the influence of financial speculators in the rise in food prices and demand changes, similar to the U.S.. A new law recently passed financial reform in the United States, which activists hope will help curb this type of speculation, which last month caused a 20% increase in coffee prices, while funds coverage ran to their positions, waiting for the prices should fall. Banks, for their part, argue that most of the rise in food prices is lower, due to decreased demand, and derivatives financial markets are an important mechanism that allows farmers to cover their risks. Goldman Sachs WDM dismissed the report, accusing him of being "grossly misinformed on a number of fronts." A bank spokesman said that "research conducted by respected international bodies such as the OECD, shows clearly that long-term trends such as increased meat consumption by the middle class in emerging markets, and increasing use of biofuels in developed countries, have created a shortage food world. "investment bank also denied he was campaigning against changes in market rules." We have repeatedly said that we support effective reform. Our effort is designed to achieve a reform that would allow farmers to cover their risks, so that consumers get a greater price stability. To suggest otherwise is completely false and misleading. "The United Nations Organization for Food and Agriculture has recently praised the anti-poverty activists, noting that increases in the food market" could have been driven by speculation organized markets " and the regulation of commodity markets is needed. But the report also argues that any intervention should be done in a cautious, and not impose rigid limits or an outright ban on this trade. It is believed that an attack could hit so hard market liquidity, used to provide financial coverage. Instead, regulatory measures should focus on increasing confidence in the "good functioning" of the market as the increase in information available about the stock market. Another way is to more rigorously investigate any suspicious behavior by traders, as practiced in the United States by a trade watchdog. But activists such as the Fairtrade Foundation, believe that such markets do not allow small farmers to have coverage, but that price swings hurt them, as they tend to be buyers of wholesale goods, but do not benefit from CSR occasional price increases on products grown for sale. According to the Fairtrade Foundation, many consumers are willing to pay a little more if they know the profits go to a farmers in developing countries, but never buy the product if the beneficiary is a stock market speculator, even filling their pockets.



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