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Posts Tagged ‘speculation

Occupying Wall Street

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The immediate area around the New York Stock Exchange, “Wall Street,” has been closed to the public and protestors who are encamped at a nearby park, chanting, singing and dancing along with marching and bugling on surrounding streets accompanied by phalanxes of cops and motor scooters, to cheers and thumbs-up from tour buses and hand shakes from passersby and street workers.

There has been no sign of the commercial media. Mainstream media in the Asia-Pacific region have ignored the historic occupation entirely, not because of their failure to see the beginning of an American democratic awakening, but because the channels of cross-holding and control are now well-established.

These mercantile cables are tightly wound around the “emerging economies” and their growing middle class populations whose consumption patterns are seen as replacing those to be lost by social movements such as this in the West.

“On the 17th of September, we want to see 20,000 people to flood into lower Manhattan, set up beds, kitchens, peaceful barricades and occupy Wall Street for a few months. Like our brothers and sisters in Egypt, Greece, Spain, and Iceland, we plan to use the revolutionary Arab Spring tactic of mass occupation to restore democracy in America. We also encourage the use of nonviolence to achieve our ends and maximize the safety of all participants.”

According to their website, the mission of the leaderless resistance movement is to flood thousands of people into lower Manhattan, set up beds, kitchens, peaceful barricades and occupy Wall Street for a few months in order to persuade President Barack Obama to establish a commission to end “the influence money has over representatives in Washington.” Demonstrators gathered to call for the occupation of Wall Street, Saturday, Sept. 17, 2011, in New York.

Occupy Wall Street is a leaderless resistance movement with people of many colors, genders and political persuasions. The one thing we all have in common is that We Are The 99% that will no longer tolerate the greed and corruption of the 1%. The original call for this occupation was published by Adbusters in July; since then, many individuals across the country have stepped up to organize this event, such as the people of the NYC General Assembly and US Day of Rage. There’ll also be similar occupations in the near future such as October2011 in Freedom Plaza, Washington D.C.

This is from their statement:
“We agree that we need to see election reform. However, the election reform proposed ignores the causes which allowed such a system to happen. Some will readily blame the federal reserve, but the political system has been beholden to political machinations of the wealthy well before its founding. We need to address the core facts: these corporations, even if they were unable to compete in the electoral arena, would still remain control of society. They would retain economic control, which would allow them to retain political control. Term limits would, again, not solve this, as many in the political class already leave politics to find themselves as part of the corporate elites. We need to retake the freedom that has been stolen from the people, altogether.”

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Unctad’s Global Commodities Forum is here

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The United Nations Conference on Trade and Development (UNCTAD), will hold the second Global Commodities Forum in Geneva on 2011 January 31-February 01.

The rationale for the first Unctad Global Commodities Forum 2010 was described last year as centred on developing countries and their dependence on on commodities for their economic well-being. “As demand for commodities in the long term is going to increase, thus posing major challenges for their sustainable and efficient production, there is a very real need to consider how to make the commodities markets more stable and policies better designed, so that the benefits would be more equitably distributed between commodity producers and consumers.” Unctad’s GCF 2010 said then that it was important that an appropriate economic return could be delivered to commodities producers, many of whom are in developing countries.

Policy actions to consider were said to include, inter alia, the development of policies to ensure that countries producing commodities do not face the so-called ‘resource curse’ and, of equal importance, measures that could be taken to mitigate or reduce the adverse effects of price and commodities market volatility, “which cause so much uncertainty and hardship to many of the most vulnerable people in developing countries”.

Moreover, said the Unctad GCF 2010 rationale statement, “there is a clear need to ensure that commodities markets are more effective in serving the interests of the real economy, and that financial market speculators do not, through excessive influx or unwinding of liquidity in commodity futures markets, disturb the performance of commodity producers, consumers and intermediaries”. (We will have to pay close attention to the proceedings of GCF 2011, and not only the statements or resolutions, to judge how far they have progressed from last year’s positions.)

Unctad said then that markets should serve the interests of these stakeholders whose livelihoods are involved in commodities production, shipment, consumption, rather than being subject to manipulation directed at the single-minded purpose of providing a short-term financial return. “Solutions must be found to ensure that the prevailing terms of trade between countries are balanced and that regulatory interventions are optimized, with a view to protect the most vulnerable stakeholders without providing an impediment to trade.”

Now, Unctad has described GCF2011 as focusing on the instability of mineral and agricultural markets and their interconnectedness, the effectiveness of commodity policies and the sustainability of the production and use of commodities, long-term energy and food security, and the role of innovation and early warning systems. “The second meeting of the GCF, organized by UNCTAD with the support of its partners, including the Governments of China, France and Switzerland, as well as Global Fund for Commodities, is a major multi-stakeholder meeting to discuss and find better solutions to perennial problems of the commodity economy,” stated Unctad. “The GCF will also address such key issues as the performance of commodity supply chains and the state of business practices and innovation.”

From the GCF 2011 programme material – themes of the second meeting of this Forum will include the following plenary and parallel sessions:

Plenary A: The State of energy markets: lower volatility and a new price zone for hydrocarbons (A1), The state of agricultural markets: the drivers of increased volatility (A2) The state of selected metals market: fundamentals, non-fundamental factors and terms of trade (A3) Commodity markets’ volatility and interconnectedness (A4), Overcoming market volatility through better regulation, data and transparency (A5); Commodity policy challenges for oil and gas-exporting countries (A6) Commodity policy challenges for minerals and metal exporting countries (A7) Trade and other policy options for modernizing agriculture in developing countries (A8).

Parallels B: Long-term sustainable supply & demand and technological innovation: hydrocarbons and other energy (B1), Long-term sustainable supply & demand in the energy sector: developing early warning systems (B2), New technologies and commodities: agriculture (B3) Long-term sustainable supply and demand and technological innovation and early warning systems for food security (B4), New technologies and commodities: energy (B5); Forecasting trends and strengthening early warning systems for producers, innovators and other supply chain participants (B6).

Parallels C: Current trends and next frontiers for commodity finance (C1), The emerging regulatory environment and trade finance: new challenges and opportunities for banks and other financiers (C2), Support institutions for commodity finance (C3), Shipping and international trade in commodities (C4) Commodity futures markets: do they obscure underlying market realities, or provide long-term signals and management tools? (C5) Risk management in commodity markets: paper and physical markets and the realities of commodity exporters (C6).

Why Rajapakse of Lanka wants to throw out 70,000 Colombo families

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Taking its cue from India, the government of Sri Lanka is targeting urban poor to force them out of their homes in shanty towns, grab the land, and re-develop it for profit.

Using the well-worn routes of citing the home owners’ lack of land titles, and changes in urban planning regulations which are exclusionist, the residents of shanty-towns such as Wanathamulla and Maligawatta in central Colombo are on the point of being forced out of their homes by a government bent on crude accumulation by forced dispossession.

Over 70,000 families – more than 50% of central Colombo’s population – are to be removed and their homes demolished by the Sri Lankan government.

The mass evictions are part of plans by President Mahinda Rajapakse to free-up nearly 390 hectares of inner city land and transform the country’s capital into what his government calls “a South Asian financial hub” (the city of Mumbai, on India’s west coast, is doing just that already).

Via the World Socialist Web Site, which has been following the struggles of the residents, this photo essay provides a glimpse into the harsh living conditions of shanty-dwellers in central Colombo, Sri Lanka.

The pictures were taken by Sri Lankan photojournalist Shantan Kumarasamy.

The government has placed the Urban Development Authority and the Land Reclamation and Development Board — two civilian bodies — under the authority of the defence ministry, which has already deployed soldiers and police to forcibly carry out evictions.

A number of shanty dwellers, with the assistance of the Sri Lankan Socialist Equality Party, have formed an Action Committee to Defend the Right to Housing (ACDRH) and issued an appeal to all workers and youth to support their struggle to protect their homes.

The World Socialist Web Site has more on the struggle here. Shantan Kumarasamy’s portraits of the people of Wanathamulla and Maligawatta, and their living conditions is here.

East Asia food – noodle wheat shortage and ginger-garlic speculation

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Supermarket 'udon', similar to Ramen. Photo Wikipedia

Noodle wheat? Japan and South Korea need a lot of it every year, about 800,000 tons according to industry estimates from West Australia. Noodle grade wheat requires careful blending to produce the appropriate flour. Japanese and South Korean-type noodles, such as the ‘udon‘ variety, require specialist wheat grades unlike the noodles commonly seen elsewhere, which are made from a more standard flour.

But, as Agrimoney reports, the drought in Western Australia threatens to land Japan and South Korea with a noodle shortage unless supplies of specialist wheat are carefully administered. Agrimoney has quoted top exporter CBH Group, which handles virtually all Western Australia’s grain harvest. West Australian wheat producers are worrying about how to supply noodle-grade wheat while dealing with a near-halving, to below 4m tonnes, in the state’s wheat production.

Noodle wheat typically accounts for 13-14% the state’s wheat crop. Now the shortage means noodle wheat is commanding a premium, currently at Aus$35 a tonne, which is likely to attract “opportunistic” merchants with little experience of handling the blend. Wheat growers in West Australia are being warned to avoid selling to a merchant whose bad handling of the blend might unsettle West Australia’s valuable grain trade relations with two important Asian clients.

Meanwhile, the Economic Observer of China (English) examines produce speculation in China’s agricultural market. Products being targeted according to the newspaper are garlic, ginger, honeysuckle and green beans.

Like many Japanese noodles, udon noodles are served chilled in the summer and hot in the winter. Photo Wikipedia

Shandong’s Jinxiang produces over 6 million ‘mu’ (a ‘mu’ is about 800 sq metres) of garlic. “Garlic is a reliable crop and garners steady expectations and consequently produces strong market liquidity,” said the Economic Observer. “Strong market liquidity and the availability of rural brokers, all contribute to the rapid influx of hot money. The rising price of garlic has attracted local and outside speculators.” Ginger prices have fluctuated significantly in the past few years. The newspaper reports that ginger prices were at a low of 0.4 yuan/kilo in 2008, and then skyrocketed to 4.6 yuan/kilo this year. “Speculating on ginger can generate huge profits. Like the garlic market, most of the money goes to brokers and middlemen.”

One third of prescription medications in China list honeysuckle as an ingredient; 70% of cold and flu medications use honeysuckle. “The price of honeysuckle has risen 400% this yearm” reports the Economic Observer. “Annual national demand is at 20 million kilograms but actual output hovers at 8 million kilograms. Supply of honeysuckle is dependent on distributors, who are hoarding.” Prices of green beans have surged in the past year, from 6.8 yuan/kilo to 24 yuan/kilo. “The green bean trading volume in Taonan has reached over 40 million tons, one fourth of the entire domestic market. However, most farmers have not profited from the market surge because of poor timing, pressure to pay back loans, and planting costs.”