Food, fuel and metals traders – just how far can you regulate and who should regulate?
U.S. regulations are now pending to limit banks’ proprietary trading — speculating with their own cash. The new rules don’t apply to trading firms. “Trading houses have huge volumes of proprietary trading. In some cases it makes up 60-80 percent of what they do,” said Carl Holland, a former price risk manager at oil major Chevron Texaco, who now runs energy consultancy Trading Solutions LLC in Connecticut. “They have the most talent, the deepest pockets, and the best risk management.”
In addition to proprietary trading curbs, the U.S. regulator voted on October 19 to impose position limits in oil and metals markets. That gives banks who trade futures cause for concern, but since physical players usually receive exemptions to limits — because they are categorized as bona fide hedgers — trading firms should go unscathed.
The trading houses’ talent and deep pockets translate into incredible power. “Most commodity buyers in the world are price takers. The top trading firms are price makers,” said Chris Hinde, editor of London-based Mining Journal. “It puts them in a tremendous position.”
Whig asks, at Adam Smith:
We could quite easily ask the protestors whether they thought an economy in which circa 50% of GDP is spent by the government could reasonably defined as capitalist? Where 20% of workers are government employees and almost everyone in the economy is in receipt of state transfer payments or other forms of state aid is ‘free market’? Where the top rate of income tax is 50%? Where government debt is 392% of GDP? Where the remaining 50% of the ‘free market’ economy is heavily regulated by the multitude of statutes and statutory bodies across every sector?
Those with no axe to grind realize we have neither “free” enterprise nor yet the soviet style socialism, which was, after all, State Capitalism masquerading as socialism, as most fuzzy, left-liberal socialists envisaged it. Hence the disconnect, as Yuri Bezmenov showed, when western “useful idiots” were invited on tour of the USSR. The real nature of the beast had to be kept from their eyes and thus they returned to the States and elsewhere with glowing tributes. Chappaquiddick Ted was one of those.
Left-liberals are forever being shown to be naive about any chance of their utopia coming about and so they settle for PCism, where sections of the community are happily discriminated against to make the left-liberals feel better about themselves, sort of like Live Aid with Attitude. There’s something mildly spiritually uplifting seeing hardworking “capitalists” dispossessed – your neighbour with a business down the road, that man with the corner shop.
Of course the left-liberal eyes are not on these people, the eyes are on the “greedy capitalists”, meaning Them but in this left-liberal zeal, anyone who commits the crime of earning money or holding property is to be dispossessed. “They” should regulate this, remove that, think the left-liberals. Tolerance for all, even as the oppressed and merely speculative from other nations pour in and take jobs from the feckless locals who become more and more feckless as they cease to be part of the equation, except as some uneducated underclass of yahoos.
We talk to left-liberals and say, “Hold on, you bstds – you just voted in, three times mind, a bunch of bandits from 1997 to 2010 who’ve over-regulated the country to its knees and given the authorities Soviet style powers of entry and arrest and you say it’s nothing to do with you?”
“Well, Maggie was worse,” is their only defence. Then they adopt our own mocking, despairing style and attack Cameron [rightly], the banksters [rightly] and capitalism [wrongly].
Yet those of us on the right, supposedly with Right on our side, are also getting it wrong. In attempting to defend capitalism, we’re also defending Capitalism, as defined by the left, which includes Them and thus is indefensible.
All this confusion is easily resolved by simply understanding Them. Them employed those who ran the Politburo and if you wish to meet Them, well-spoken chappies all- just pop down to Chatham House or conjure up the ghosts of Rhodes, Milner and Tavistock. The more virulent types like Geoff Mulgan and Julia Middleton, part of the lower orders, are still available for a chat, if you promise to lead beyond authority.
They’re not, as anti-conspiracy theorists scathingly maintain, an interlocked club, except at the highest level – there’s too much dog-eat-dog and step-over-your-dead-grandmother for that. True, the higher orders put on a great show of secrecy for the punters at the Bilderberg and Bohemian Grove and mock anyone suggesting a C300, Blair twice denies he was ever at a BB conference, as if it was the critical event and meanwhile the BIS quietly does its thing.
Name me any three board members of the BIS.
Name me the ex-director of Tesco who’s now joined the board of Coca Cola in Atlanta and who set up Force Femmes which caused to be written up the raft of regulations about women in the workplace and imposed on the UK via EU directives. She’s now formed Terrafeminina – world of women . Most people would never have heard of her.
These are the board members who never seem to do anything but act, as Breshnev once did, as the “political arm”, so he described it, of the armed forces. These are the Common Purpose “advisors” who sit in council offices up and down the land and “advise” on how to toughen up in dealings with local residents. You know – prosecuting someone for having a wheelie bin an eighth of an inch outside its regulated place, that sort of thing. Wasting millions of residents’ money in Iceland.
And where do the Dimons, Geithners and Bernankes fit into this? Tucker and King? Sutherland and Rex Tillerson? Strong and Blair? Irina Bokova and Michelle Bachelet? They’re up there but they’re still only players, lieutenants. The money itself never shows its face.
All right, so I toddle down to St Pauls and speak through a megaphone to the protesters: “You’ve got the wrong targets, you oppressed persons, you. Your targets should include Marianne T. Poulsen and Erik Prince, not just Dimon, Geithner and Bernanke. How about Ambani, Adanis, Birla, Mittal? How about the owners whom I won’t name of Banca del la Svizzeria Italiana? Or one I shall name – Franco Orsini Bonacassi? Why don’t you speak to the steel workers about Etienne D’Avignon? Pop over to Geneva and have a chat with the Oltramaire family because they’re the ones you need to persuade, not Dr Giles Fraser.
So, if you have your way, dear protesters and Capitalism is killed off, what takes its place? Ask Guillermo Ortiz, Jean-Claude Trichet, Zhou Xiaochuan, Jean-Pierre Roth, Christian Noyer or Klaas Knot – they know exactly what’s happening and what will be implemented to replace currency. So do William C. Dudley, Narayana Kocherlakota and Christine M. Cumming. Ask them, protesters.
And how on earth can “we”, as in “we the people” regulate or roll back those people named above if we don’t even know who they are, what they do or how much power they actually wield, severally and/or collectively? How exactly will you, the people, stop the modern day Jacques Soustelles? Don’t you understand that this is a hydra or to use another analogy – the Bernankes and Trichets are only the soldiers on the outer ramparts. How are you going to get to the keep? By storming the Bastille? As Gaddafhi showed – the closer you get to the source, the more you encounter private armies.
These are the people who are dirtying the whole concept of capitalism but when you replace that word with a less emotive one – free enterprise – then if you kill that off, you are killing off your last chance of not being finally enslaved by the monied families. And as said many times over, the things in the way of that currently are patriotism to the nation state, embracing the traditional family, proper marriage which at least produces legitimate heirs, private property/inheritance, the Judaeo-Christian tradition so many like to mock and let’s throw in the American Constitution and the 1687-9 bulwark in this country.
I’m not a conservative libertarian because it’s fashionable or it’s my mindset – my mindset is more radical than that. I’m a conservative libertarian because it is the only bastion, the last remaining one, against a tyranny we just don’t want to know but which I saw the remnants and legacy of in Russia. You know what I loved most about my ex-gf? Her lifeless grey eyes.
Welcome to the future unless we get our targets right.
We’re still waiting for this to be debunked.