How Speculators Are Causing the Cost of Living to Skyrocket

[jeffrey]

After investing in high-tech stocks and real estate loans for years, legions of speculators have now discovered commodities like oil and gas, wheat and rice. Their billions are pushing prices up to astronomical levels -- with serious consequences for ordinary people's quality of life and the global economy.

Daniel Jaeggi is sitting at a conference table in an office building on Place du Molard in Geneva, only a few steps away from the lake. It is 1:45 p.m. on Friday of last week, and the price of a barrel of the benchmark Brent Crude oil is at $129.50.

Jaeggi, a 47-year-old Swiss citizen, is a petroleum trader. He and his partner, Marco Dunand, own a company called Mercuria. It is one of the world's 10 largest trading companies. At its offices in Geneva, approximately 110 employees analyze markets, handle contracts and track tanker routes. Last year Mercuria traded in petroleum products worth a total of almost $30 billion. That included millions of barrels of oil destined for China...

The Attack on Prosperity: How Speculators Are Causing the Cost of Living to Skyrocket - International - SPIEGEL ONLINE - News