imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Bank Tribunal: In the Claws of Speculators

by Peter Wahl Wednesday, Apr. 07, 2010 at 9:23 AM

The enormous rise in prices of oil and food in the summer of 2008 was largely caused by speculation. Thousands upon thousands of people died of starvation at that time. Politics was a compliant accessory of the financial branch. The Bank Tribunal will be from April 9-11 in Berlin.


By Peter Wahl

[This article published in: Frankfurter Rundschau 3/21/2010 is translated from the German on the Internet

Attac, a global justice network, is organizing a Bank Tribunal in Berlin from April 9-11, 2010 in which culprits for the financial crisis and steps preventing future crises will be named.]

Many raw materials are becoming increasingly scarce, above all crude oil. The supply of copper and new materials like tantalum and coltan necessary in micro-electronics is also scarce. The raw material hunger of China and the other threshold countries and the global population growth enormously accelerate the exhaustion of reserves. Opposite factors like innovation, substitution, opening new reserves and recycling will mitigate the trend somewhat but can not reverse it.

The epoch of cheap raw materials is undeniably over. This is also apparent on the financial markets. Since 2003 more and more investment banks, hedge funds and other institutional investors have pounced on the raw material markets. Thus the number of futures for oil traded on the stock exchanges increased more than 150 percent between 2004 and 2008. The volume of transactions on the markets for oil futures, options and swaps was 35-times as great as that of the physical oil market (spot market). Over the counter transactions (outside the exchanges) are not included. The tendency is similar for other resources like agricultural raw materials.

The emergence of speculators on the raw material markets went along with a massive rise in prices. These prices are not only determined now by the fundamentals of the raw material markets (demand, quantity of reserves, investments in advanced technology etc). Rather the “fundamentals” of the financial markets come into play: exchange rate fluctuations, interest differences, risky derivatives, portfolio- and risk-management and herd instinct. Thus the enormous rise in prices of oil and food in the summer of 2008 was largely caused by speculation. Thousands upon thousands of people died of starvation at that time.

Two markets with completely different logics and time horizons are joined together: on one side the physical raw material trade with buyers and sellers whose expectations are oriented in the balance of supply and demand and who act in the rhythm of tanker deliveries. On the other side are financial market actors who have no interest in the physical side of the raw material business but speculate on short-term price fluctuations in the shortest time periods, often in seconds.

The rampant growth of the financial branch in the raw material sector – described in a neutral way by its protagonists as “financialization” – means chaining raw material prices to the logic and dynamic of financial market capitalism. High-risk speculation, bubbles, crashes and intensified short-term volatility now spill over to the raw material markets. A February 2010 study of the French government concludes that the “financial logic of the actors is hard to control and contains a system risk.”

Politics was a compliant accessory of the financial branch. In the US the raw material markets were deregulated with the 2000 Commodity Futures Modernization Act signed by President Bill Clinton. In Germany the Index Fund adopted a few years ago plays an important role in raw material speculation.

One thing should be clear after the century crash: most raw materials are much too import ant for the world economy to be made into chips on the gambling table of the financial casino.

[Peter Wahl is one of the founders of Attac-Germany and a member of the Attac advisory council. He is a co-worker of the developmental non-governmental organization WEED (World Economy, Ecology and Development) in Berlin. He will be assigned counsel for Chancellor Angela Merkel at the Attac Bank Tribunal.]


Report this post as:

Local News

Marshall Tuck’s racist dog whistle O27 5:01AM

Marshall Tuck’s ethnocentrism contradicts Californian values O27 4:32AM

Contra Costa-Hawkins O25 3:48AM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

More Local News...

Other/Breaking News

Credit Mr. Richard Enos with outstanding penmanship N19 6:08AM

Master list=====47 million american on foodstamp List State plus Federal N18 8:21PM

Cholesterol Medicine Causes Alzheimers N18 7:40PM

Lucifers Banker N18 7:38PM

Paraphysique du scientisme N18 9:19AM

USDA Withholds Names Of Turkey Companies Spreading Salmonella N17 7:51PM

Hebron, Ben-Gurion, and UNESCO N17 6:00PM

What Can Destroy Enclosure? N17 1:47PM

Please Help Mississippians Vote For Mike Espy On Nov 27th N17 7:42AM

The Incredible & Brilliant Work of Dr TOMO SHIBATA N17 5:19AM

October 2018 Honduras Coup update N16 9:22PM

Profit de guerre, guerre de profit N16 11:58AM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen Heads to Seattle N15 7:22PM

Paraphysique du prodrome oukase N15 12:39PM

President Trump: Hurricane Relief Should not Pay Puerto Rico Debt N14 8:54PM

94 Of Rick Scott's, Brian Kemp's, the Mississippi GOP's & Other Republican Campaign Crime N13 9:42PM

30 Of Brian Kemp's Felonious Racist Vote Suppression Crimes N13 8:42PM

Help translation of From Islam To Womanism book on IndieGoGo N13 12:04PM

COP 21, 25, 32, de l'écocide organisé N11 11:45PM

fbi & fmj are ' Lord of the Flies ' N11 8:26PM

Parangon d'une grande infestation N11 12:03AM

Video: Beautiful Country Burn Again, 39 min N10 10:19PM





Paraphysique de l'Etat d'urgence N08 4:24AM

Republican Vote Fraud Reached A New Level In Midterms N07 7:50PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy