Why Jamie Dimon Should Head the CFTC

April 29, 2008 at 11:52 am | Posted in Financial | Leave a comment
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Where\'s all this money coming from?April 21 – Financial Times (Javier Blas and Joanna Chung): “Speculators such as hedge funds or pension funds are not responsible for pushing agricultural commodities’ prices, including wheat and rice… The US Commodity Futures Trading Commission is meeting farmers and traders tomorrow to discuss the jump in agriculture commodities’ prices amid criticism from US politicians and farming associations that speculators are behind the increase. It will say prices have been driven by robust demand, weather-related supply disruptions, the lowest inventories in 30 years, government trade restrictions and the impact of the weakening US dollar, officials said.”

If you ever heard JP Morgan/Chase CEO Jamie Dimon speak about circumstances surrounding the inflation of the sub-prime mortgage bubble prior to its bursting last year, you know the man is not a very good liar.

Speaking of that inflation… Lo! Look at the money-like securities created more rapidly than maggots in a dung heap. And look at all the global connections to this, including sovereign wealth funds.

Now, speaking of maggots in a dung heap … look at the CFTC.

Those citing increased demand as responsible for the hyper-inflation of commodities prices typically do so without raising the most fundamental question of all:

Where is the money behind this demand coming from?

If the truth you seek, then by all means ask neither Wall Street nor their “regulators.”

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How Financiers Promote Fascist Political Movements

April 16, 2008 at 3:27 pm | Posted in Political | Leave a comment
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April 8 – Bloomberg (Terry Barrett): “Global food prices rose 57% in March from a year earlier, according to the UN Food and Agriculture organization. From a month earlier prices rose 1.4%.”

April 10 – Financial Times (Javier Blas): “For the past 40 years, consumers have had the upper-hand in the global rice market, which has witnessed a steady decline in prices, interrupted only by the brief spike in 1973-74 triggered by the first oil crisis. The structural decline in prices was the result of the Green Revolution, the agronomics movement that spread the use of irrigation, fertiliser and high-yielding varieties of rice in Asia in the late 1960s and led to bumper crops. Rice production per hectare jumped in developing countries from 1.7 tonnes in 1961 to 4 tonnes in 2006. This ‘buyers’ market’, however, has flipped abruptly this year into a ‘sellers’ market’ because of a fundamental change in the balance between supply and demand. This is likely to keep prices in the medium-term well above historical levels, analysts and traders say. The price of Thai medium-quality rice, a global benchmark, traded on Wednesday at a record high of $854 a tonne… It has more than doubled since the end of last year.”

April 7 – Bloomberg (Marianne Stigset and Tony Dreibus): “From Cairo to New Delhi to Shanghai, the run on rice is threatening to disrupt worldwide food supplies as much as the scarcity of confidence on Wall Street earlier this year roiled credit markets. China, Egypt, Vietnam and India, representing more than a third of global rice exports, curbed sales this year, and Indonesia says it may do the same… The World Bank in Washington says 33 nations from Mexico to Yemen may face ‘social unrest’ after food and energy costs increased for six straight years. Rice, the staple food for half the world, rose 2.4 percent to a record $20.985 per 100 pounds in Chicago today, double the price a year ago and a fivefold increase from 2001.”

Money makes the world go ’round, they say. And when it is largely being used to develop productive capacity, well, that’s okay.

However, when its turning is for its own sake, then there’s a problem. A rational man begins to think, “Who benefits … and who pays?” Money is, after all, behind reported food price increases.

Who benefits?

Whose unregulated, off-shore financial havens have facilitated the most critical component — derivatives — behind the greatest flood of liquidity since Noah?

Whose commodity exchanges compound demand with leverage?

Whose free market banter is looking quite like … well … a self-serving fix?

Who pays?

Humanity (with liberty)!

Some Empire…

April 10 – Bloomberg (Feiwen Rong):  “Billionaire investor George Soros said rising world food costs are ‘of grave concern,’ especially to importing nations who also have to buy high-priced fuel. Those countries will face increased inflationary pressure that may lead to ‘social and political disruptions,’ Soros…said…”

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