The World Development Movement, a UK-based non-governmental organisation (NGO), has accused Barclays Bank of profiting from world hunger by betting on food crises and helping to push food prices up.
“The real problem is not that food is becoming more expensive, it’s that money is losing value. Central banks all around the world are simply printing too much money and so you need more money to buy food. It’s not the weather, it’s not speculation, it’s the inflation that central banks around the world are creating.”
– Peter Schiff, the CEO of Euro Pacific CapitalThe NGO said Barclays had reportedly made more than $800m over the past two years from speculating on food markets and that investors were using the food market as a “playground”.
It said this has contributed to hunger and poverty not only for millions in poor countries, but also in developed nations.
The allegations come on the back of a World Bank global hunger warning. According to a report by the bank released this week, global food prices have hit record highs. In July alone, its global food index increased by 10 per cent.
And the price of specific commodities has risen even faster. Corn and soybeans have reached record prices in recent days.
The World Bank lays the blame for price rises largely on the weather: drought in the US has been exacerbated by a dry summer in Russia, Ukraine and Kazakhstan.
“There are other issues that are driving prices higher: There are many of us – seven billion … we are eating much more .… You have to be completely backward not to see that we have toasted this planet.”
