re: How GS Created the Food Crisis

The headline:

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Don't blame American appetites, rising oil prices, or genetically modified crops for rising food prices. Wall Street's at fault for the spiraling cost of food.

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Don't blame American appetite

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Fail #1. Price change is based on marginal demand change. Americans consume a shitload of food, no doubt. We are not consuming xx% more in Jan 2011 as compared to (picking a number here)...Jan 2009. ON THE OTHER HAND, the rapid industrialization of China and India (who make up like, you know 30% of the world's population), they might have some incremental demand change. Maybe. That terrible mag the Economist has a 15 page report on food costs a few weeks ago, but its obviously crap since Michael Lewis said so.

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rising oil prices

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They're obviously intertwined. Pretty sure we can blame literally anything on rising oil prices at this point.

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genetically modified crops

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Fail #2. Correct me if I'm wrong here, but didn't the Green Revolution raise yields exponentially (and lower costs, this came from aforementioned Economist article)? So an increase in supply and a decrease in input costs is somehow to "blame" for rising prices? Literally economically backwards. Maybe (again from slanted article) its because the GR has reached its inflection point and yields are not growing YoY anymore?