Amy Trendle

The massive commodities sell-off stumped everybody. Financial analysts are still looking for clues as to what caused it. Oil and silver were hardest hit, seemingly without reason. Has the bubble burst or was the market just clearing out the “froth”?

A combination of skyrocketing food prices and an oil price being sent ever higher by social upheaval in North Africa is worrying many. In the last twelve months the price of corn has increased by 83%, wheat by 75% and coffee by 85%. Climate change, richer diets, droughts and floods are all contributing to an unstable scenario.

The project to raise $400 billion every year for development projects and to fight poverty has never been closer to finding approval in the G20. Taxing speculative financial transactions could not but find favour with public opinion that is tired of the greed and profligacy of bankers. Will 2011 be the year of the Financial Transaction Tax?