The proposed merger between Xstrata and Glencore is about as useful as an arthritic, one-legged man at an arse-kicking contest. Yes it's a mega deal. So what? Big deal!
Let's have some breakfast and I'll tell you why!
Caffe' latte, cappuchino or filter coffee? Filter? Good choice. Roast or instant? Milk? Fine. Hot or cold? Hot. Okay. Sugar? Two spoons do for you? You'll have to excuse me a minute I need to make it myself. I had to let the staff go. Times are tough! Whilst you wait pull up a chair and make yourself at home. The central-heating's a little low I know; energy prices are through the roof... Bloody OPEC! Eggs & bacon? One rasher or two? Benedict, poached, fried, boiled or scrambled? Soft, medium, hard, over-easy or sunnyside up? Good. Excuse me a minute....
That's a pretty standard conversation these days in most homes, yes? It's a farce and you've been fooled....
Let's start with your coffee. The price of coffee, roughly speaking, doubled from mid-2009 to mid 2011. It has subsequently crashed back down to pre-2009 prices. Whilst the world's economy and its equity markets faced the toughest conditions since the Great Depression the price of coffee doubled. Your sugar? Prices of raw sugar FOB tripled (yes that's 3x) over the same period. How about your eggs; your bacon? Don't forget you have to feed corn to the chickens and pigs or there won't be any eggs or bacon, right? The price of corn FOB (free on board: a shipping term) tripled, roughly, over the same period. Getting the raw commodity to your plate requires energy, heat, butter, oil etc. Prices? Yes, you guessed it; - through the roof!
Now, if the economy was bad and it was and if I had to let the staff go and they've let theirs go which means less money is spent by all on coffee, bacon or eggs why have food prices (soft commodities) climbed exponentially? Crops we know haven't failed. Arable lands are not eroded and farming technology is progressive. To coin a common phrase, WTF?
Doesn't make much sense, does it? So why? I'll tell you. Johnny Glenstrata, a speculative trader, surrounded by his adoring fans, [the media, the proprietary desks of the too-big-to-fails and the other CBOT muck] has TRADED the price of food, coal and energy higher (exponentially and artificially); for speculative profit. Stealing lunch at the playground is fairly straightforward when the other kids are half your size...
Don't scoff; sit up and smell the coffee. The stink of it is monopolised greed. Brazil, currently the world's largest food producer, is, as we speak, implementing the prohibition of ALL speculative trade in soft commodities...
Let's have some breakfast and I'll tell you why!
Caffe' latte, cappuchino or filter coffee? Filter? Good choice. Roast or instant? Milk? Fine. Hot or cold? Hot. Okay. Sugar? Two spoons do for you? You'll have to excuse me a minute I need to make it myself. I had to let the staff go. Times are tough! Whilst you wait pull up a chair and make yourself at home. The central-heating's a little low I know; energy prices are through the roof... Bloody OPEC! Eggs & bacon? One rasher or two? Benedict, poached, fried, boiled or scrambled? Soft, medium, hard, over-easy or sunnyside up? Good. Excuse me a minute....
That's a pretty standard conversation these days in most homes, yes? It's a farce and you've been fooled....
Let's start with your coffee. The price of coffee, roughly speaking, doubled from mid-2009 to mid 2011. It has subsequently crashed back down to pre-2009 prices. Whilst the world's economy and its equity markets faced the toughest conditions since the Great Depression the price of coffee doubled. Your sugar? Prices of raw sugar FOB tripled (yes that's 3x) over the same period. How about your eggs; your bacon? Don't forget you have to feed corn to the chickens and pigs or there won't be any eggs or bacon, right? The price of corn FOB (free on board: a shipping term) tripled, roughly, over the same period. Getting the raw commodity to your plate requires energy, heat, butter, oil etc. Prices? Yes, you guessed it; - through the roof!
Now, if the economy was bad and it was and if I had to let the staff go and they've let theirs go which means less money is spent by all on coffee, bacon or eggs why have food prices (soft commodities) climbed exponentially? Crops we know haven't failed. Arable lands are not eroded and farming technology is progressive. To coin a common phrase, WTF?
Doesn't make much sense, does it? So why? I'll tell you. Johnny Glenstrata, a speculative trader, surrounded by his adoring fans, [the media, the proprietary desks of the too-big-to-fails and the other CBOT muck] has TRADED the price of food, coal and energy higher (exponentially and artificially); for speculative profit. Stealing lunch at the playground is fairly straightforward when the other kids are half your size...
Don't scoff; sit up and smell the coffee. The stink of it is monopolised greed. Brazil, currently the world's largest food producer, is, as we speak, implementing the prohibition of ALL speculative trade in soft commodities...
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