Sarkozy blames speculation
FRENCH president Nicolas Sarkozy lashed out at commodity speculators yesterday, arguing that tighter controls would prevent spiralling global prices.
Sarkozy, head of the G20 group of the world’s leading economies, said he wants to see new rules requiring minimum cash deposits with a central authority for all commodities derivatives deals, not just those on formal exchanges as is the current practice.
“Following the US and Europe, all G20 countries should commit to this way forward,” said Sarkozy.
However, placing blame with speculators merely masks the errors of Western central banks, according to Carl Neill, analyst at Risk Management Incorporated in Chicago.
“It’s all the Fed’s fault,” Neill hit back. “Central banks around the world around the world are continuing to print money, so of course people are buying inflation-protected assets.”