Immorality // Current TV

Workers paying high price at Bangladesh tanneries

This is unconscienable. The price of Globalization.

JanforGore
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2 years ago
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How Goldman Sachs Starved Millions and Got Away With It

While Goldman Sachs agreed to pay $550 million to resolve a civil fraud lawsuit filed by the SEC, Goldman has not been held accountable for many of its other questionable investment practices. A new article in Harper’s Magazine examines the role Goldman played in the food crisis of 2008 when the ranks of the world’s hungry increased by 250 million. We speak to Harper’s contributing editor Frederick Kaufman.

AMY GOODMAN: We continue with Goldman Sachs.

JUAN GONZALEZ: Well, while Goldman Sachs agreed Thursday to pay $550 million to resolve a civil fraud lawsuit filed by the SEC, Goldman has not been held accountable for many of its other questionable investment practices. A new article in Harper’s Magazine examines the role Goldman played in the food crisis of 2008, when the ranks of the world’s hungry increased by 250 million. The article is titled "The Food Bubble: How Wall Street Starved Millions and Got Away With It."

AMY GOODMAN: The author of the article, Frederick Kaufman, joins us now. He’s a contributing editor at Harper’s Magazine.

Well, explain. We’re talking about Goldman Sachs today, this—they call it a landmark settlement, but they made more after-hours in trading last night than they will have to pay. So let’s look at Goldman Sachs and its record overall.

FREDERICK KAUFMAN: Yeah, this is really—it’s really outrageous. And on a certain level, this reform bill is really a sham, because it does not cover, in any way, shape or form, what Goldman Sachs—and really, let’s be honest here, it wasn’t just Goldman; it was Goldman, and it was Bear, and it was AIG, and it was Lehman, it was Deutsche, it was all across the board, JPMorgan Chase—what these banks were able to do in commodity markets, really which reached its peak from 2005 to 2008, in what is now known as the food bubble. And as Juan points out, this is unconscionable what happened, in the sense that their speculation and their restructuring of these commodity markets pushed 250 million new people into food insecurity and starving, and brought the world total up to over a billion people. This is the most abysmal total in the history of the world.

JUAN GONZALEZ: Now, what were these commodities markets like before the Wall Street firms got involved? And you have a haunting picture, especially of the Minneapolis Exchange, what it was before, what it was like. Could you talk about how things operated and then what Goldman Sachs did precisely?

FREDERICK KAUFMAN: The wheat markets, in particular, in this country are the outcome of a process of development of over 150 years. And that is why, from about 1903 to 2003, the real price of wheat in this country has gone down. And this was one of the great reasons for America’s great twentieth century, the fact that we had cheap food, we had cheap bread. And Goldman, in 1991, came up with a new idea and a new product, which, as I said before, completely restructured this market and completely threw it out of whack.

But before we go there, we just have to maybe review for a second a little bit about how these markets worked and what kept that wheat price stabilized. And Juan, you mentioned the Minneapolis Grain Exchange, this kind of obscure syndicate in the Midwest, which is where the price of this particular kind of wheat, hard red spring wheat, which is the most widely traded wheat in the world, and it’s the most widely exported wheat from the American continent—we kind of set the world price on this wheat. This is where it happens. What’s the history of that price being stabilized is you have, traditionally, in the wheat futures market, two kinds of players: one of the farmers and the millers and the warehousemen—right? And this, of course, includes players like Domino’s Pizza and Sara Lee and General Mills, very large business, capitalist stakes are in this wheat market, right? And they are called bona fide hedgers, because they’re actually buying and selling real wheat. As the price fluctuates in the futures markets, you also traditionally have speculators in this market, people who don’t want wheat, who wouldn’t have any place to put it if they bought it, but they’re making money off buy orders and sell orders, as the price fluctuates each day, and hopefully they’re bringing in some money for themselves every day. That’s the idea.

Now, the key here is that both the bona fide hedgers and the speculators, every time they buy, they’re also selling, and every time they sell, they eventually buy. So their positions are cleared off at the end of the day, OK? Goldman, we have to understand, and a lot of these banks, are not interested in the particular structure of any of these markets. I think it’s a lot of mistake people make when they think about how these bankers are working. We think that they’re actually interested in the markets. We think that they’re—no. What they’re after are very large pools of cash for themselves. They’re after accumulating huge pools of money that they can do with whatever they like on a day-to-day basis. Right? And so, Goldman, in 1991, came up with this idea of the commodity index fund, which really was a way for them to accumulate huge piles of cash for themselves. It wasn’t really about the markets, anyway. The market was just an excuse. And so, the fact that they threw these wheat markets out of whack didn’t really matter to them.

How did this work? Instead of a buy-and-sell order, like everybody does in these markets, they just started buying. It’s called "going long." They started going long on wheat futures. OK? And every time one of these contracts came due, they would do something called "rolling it over" into the next contract. So they would take all those buy promises they had made and say, "OK, we still—we’re just going to—we’ll buy more later. And plus we’re going to buy more now." And they kept on buying and buying and buying and buying and accumulating this unprecedented, this historically unprecedented pile of long-only wheat futures. And this accumulation created a very odd phenomenon in the market. It’s called a "demand shock." Usually prices go up because supply is low, right? That’s the idea. There’s not a lot of supply, so the price goes up. In this case, Goldman and the other banks had introduced this completely unnatural and artificial demand to buy wheat, and that then set the price up. Now, a lot of people are saying, "Oh, it was biofuel production. It was drought in Australia. It was floods in Kazakhstan." Let me tell you, hard red wheat generally trades between $3 and $6 per sixty-pound bushel. It went up to $12, then $15, then $18. Then it broke $20. And on February 25th, 2008, hard red spring futures settled at $25 per bushel. This is completely beyond the pale, particularly at a—

JUAN GONZALEZ: Almost ten times its historic price.

FREDERICK KAUFMAN: Yeah. It was just completely out of control. And, of course, the irony here is that in 2008, it was the greatest wheat-producing year in world history. The world produced more wheat in 2008 than ever before.While Goldman Sachs agreed to pay $550 million to resolve a civil fraud lawsuit filed... more

JanforGore
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Monsanto's GMO stealth attack faces rising opposition in South Africa

Nombulelo Siqwana-Ndulo (PhD) FoodFirst, April 15 2010... more

JanforGore
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3 years ago
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2 comments

The Only Immortal Animal on Earth

Have you ever wondered what would happen if our life cycles were reversed, that is if... more

jcamille
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Sex for Health Care

A woman is faced with having to get pregnant in order obtain life saving health care... more

JonRaymond
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Monsanto penetrating carbon credits

As the UN Climate Change Conference 2009 (COP15) gets closer, a new agreement has to be signed for the period after 2012. It is becoming clear how agribusiness attempts to gain profits from the massive carbon credits market. Under the term "Conservation Agriculture", Monsanto and other biotech allies have penetrated the Food and Agriculture Organisation (FAO) and the United Nations Framework Convention on Climate Change (UNFCCC) aiming to get carbon credits for agribusiness. A voluntary 'responsible' label for Roundup Ready soy sponsored by World Wild Life Fund (WWF), and a newly approved Clean Development Mechanisms (CDM) methodology are important steps for Agribusiness to get access to this three billion dollar business.

Proposals to include agriculture in carbon offsetting focus on changes in tillage practices and reductions in methane and nitrous oxide emissions. All these practices are included in the concept of "Conservation Agriculture", which is based on three principles: minimal soil disturbance, permanent soil cover and crop rotations . However, in the name of Conservation Agriculture and with the explicit consent of FAO and UNFCCC, very different agricultural methods are included. Under this label a range of systems from biological agriculture to No-till GM industrial agriculture can be labelled as sustainable and so receive carbon credits.

No-till is an agricultural technique that requires no ploughing or digging of the soil. When sowing, seeds are drilled into the soil. In general, No-till is considered a conservation practice that increases levels of soil organic matter and reduces soil erosion, but in RR soy industrial monocultures it part of this technique is used in conjunction with very harmful environmental practices.

In practice, Carbon credits for No-till could mean a massive economic support for Genetically Modified (GM) soy monocultures in South and North America and a promotion of this agribusiness model in other Southern Hemisphere regions.

GM soy monocultures are a production model which is not sustainable in any way. In South America, soy production of this kind is one of the main drivers of deforestation, land use change, biodiversity destruction and human rights violations . Moreover, these monocultures sustain the industrial feed industry which is a main cause of climate change as well. To label these agricultural production models as “sustainable” only because they involve less ploughing (no tillage or No-till) means falling into a trap of absurdly reductionism and blindness.

The report "Agriculture and Climate Change: Real Problems, False Solutions" presented in June 2009 reveals the main agriculture-related proposals in the negotiations for a post -2012 climate agreement. It provides an informative panorama on how current and proposed agricultural practices for the post Kyoto agreements really impact on climate change. However, in this article we will focus specifically on some cases related to soy monocultures.
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And the current climate bill in Congress aids their scheme which discredits it right from the start.As the UN Climate Change Conference 2009 (COP15) gets closer, a new agreement has to... more

JanforGore
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3 years ago
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ABC News 'stunned' to discover dead peasant insurance

Michael Moore's Capitalism, A Love Story has revealed a deep dark secret to the... more

Vierotchka
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3 years ago
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Dead Peasant Insurance; Corporate greed sinks to new depths.

Can you believe that this is now going on in America. What the hell is happening to... more

kennymotown
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3 years ago
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4 comments

Monsanto in violation of clean water laws all for the sake of Round Up

Where is the outrage about the toxic pollution being spread by these vipers? Did it die with Rachel Carson? I know it didn't die in me, and I am getting very tired of reading article after article about Monsanto getting its way to not only pollute our water, but to pollute our food, our land, and the future of our children. This isn't about what THEY WANT.

BAN GLYPHOSATE.

Excerpt:

As it races to replenish phosphate supplies for its weed-killing cash machine Roundup, Monsanto Co. insists its history of polluting southeastern Idaho’s high country shouldn’t prevent it from digging fresh open pits here.

Three of the St. Louis-based chemical company’s previous mines in this region of broad valleys and forested ridges are under federal Superfund authority; a fourth is now violating federal clean water laws. In all, several companies are responsible for polluting at least 17 sites southwest of Yellowstone and Grand Teton national parks.

With its current mine in the region nearly played out, Monsanto now wants federal regulators to let the company open a new one by 2011, contending safeguards on the project will keep poisons out of the Blackfoot River. The trout stream just a few hundred yards away is among 15 southeastern Idaho waterways where selenium that leaked from mines exceeds legal state levels.

David Farnsworth, Monsanto mining manager, walked the 1,400-acre Blackfoot Bridge site in late July, describing a liner meant to stop pollution. Even if it fails, he said, vast containment ponds below will keep poisons out of rivers downstream.

"The best laid plans show that Mother Nature changes the game plan," Farnsworth said. "The water shouldn’t become contaminated, but if it does, there are the means to handle it."

Marv Hoyt, of the Greater Yellowstone Coalition in Idaho Falls, counters Monsanto and fertilizer makers J.R. Simplot Co. and Agrium Inc. have squandered all trust with their past pollution.

At J.R. Simplot’s Conda site, hundreds of sheep died in the 1990s after eating toxic forage. Nearby, Canada’s Agrium is spending $500,000 at its North Maybe Mine to control selenium discharges blamed by state wildlife officials for killing all aquatic life in a creek.
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Haven't they gotten away with enough with DDT, Agent Orange, and PCBS?
WAKE UP AMERICA.Where is the outrage about the toxic pollution being spread by these vipers? Did it... more

JanforGore
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3 years ago
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Immorality and Twitter

The other week saw people climbing the walls of the “twittersphere” with... more

Anyother
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Afghan Taliban kill young woman, man for eloping

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Anyother
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AIDS a Glamorous Multi-Billion Dollar Industry - Sufferers Forgotten

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jlaws
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4 years ago
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Prominent Ugandan AIDS Activist Thanks Pope for Opposition to Condoms

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jlaws
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2 comments

How Dare They!

Pope Benedict XVI embarked on his first missionary journey to Africa, and had not yet... more

jlaws
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Pope: Condoms could worsen Aids

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covelogibbs
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Immorality leaves bad taste in mouth

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ClareW
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Palestinian Conflict Resolution Expert On Middle-East Peace

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datamined
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EGYPT: Hamas blocking wounded in Gaza from medical treatment

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datamined
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Palestinian President: "We Blame Hamas!"

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datamined
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VIDEO: Palestinian Authority Torturing Palestinians

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datamined
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