Professor Krugman's "global warming has caused the spike in food commodities" thesis appears falsified.
No dissertation defense should argue with the market.
From Investors Business Daily:
Commodities posted the largest quarterly loss since the 2008 financial crisis after grain prices plunged on Thursday and oil fell, despite the dollar weakening in the final session for June.I'm being a bit harsh on the good Herr Professor Doktor, Doktor (yes, he has at least two doctorates), there is a warming component but teasing it out of the noise is not easy.
The 19-commodity Reuters-Jefferies CRB index, a global benchmark, finished the second quarter 6% down. It was its biggest decline since the fourth quarter of 2008, after the collapse of Lehman Bros. triggered a global financial market meltdown.
The outlook for commodities through 2011 was uncertain, analysts said. They said investors were anxious about whether the U.S. Federal Reserve would prolong a stimulus program that injected money into the commodity markets over the last nine months.
The Fed has said the $600 billion bond-buying program, known in market lingo as Quantitative Easing 2, or QE2, would not be extended beyond June 30....MORE