Thursday, June 23, 2011

The Only Thing Worse Than Goldman Manipulating Commodities Markets Would Be the United Nations Having a Go at It

Long time readers know that I am dead set against the big financial intermediaries gunning consumables. Let them run gold to a bazillion but cut the crap with the "Long-only" index "investors" in the GSCI and the swaps- to-evade-position-limits games.

So now the watching-developments-in-Rwanda crowd wants a piece of the action.

Reading the Bloomberg story "China, India, Brazil Back France’s Plan to Tackle ‘Plague’ of Food Prices":

“A market that is not regulated is not a market, it’s a lottery in which fortune smiles on the most cynical, instead of rewarding hard work, investment and the creation of value,” 
-Sarkozy addressing G-20 Ag ministers

Reminded me of the headlines from a couple weeks ago:
The Guardian, June 6
UN blames speculators on food price surge 

UN calls for intervention in commodity markets

UN proposes commodity deal tax to curb speculation

Wall Street Journal, June 5
UN Agency Urges Controls On Financial Investors In Commodity Markets

So the plan appears to be: Have a bunch of unelected kleptocrats plan the world food economy, set up side deals for their BFF's and divvy up the spoils.

As an homage to world class ad man, i.e. manipulator, Jerry Della Femina, I will probably have another post on the UN rent-seeking called "'From Those Wonderful Folks Who Gave You Oil-for-Food".

I'm checking the link-vault for my fax copy of the $985K check that former U.N. honcho Maurice Strong got from Saddam Hussein and which was presented as evidence to the Volcker inquiry.

While I do that, the journo's among our readers can brush off the oil-for-wheat file. (hint, hint)