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Ed Webb

The demise of the dollar - Business News, Business - The Independent - 0 views

www.independent.co.uk/...ise-of-the-dollar-1798175.html

oil currency China USA EU Iran KSA UAE GCC gold dollar Euro Yuan Japan Yen Russia IR energy politics foreignpolicy

shared by Ed Webb on 06 Oct 09 - Cached
  • The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
  • a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."
  • World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations,"
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  • In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.
  • The current deadline for the currency transition is 2018.
  • Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.
    • Ed Webb
      Ed Webb on 06 Oct 09
       
      Fisky always has been prone to alarmism. Iran is a much tougher target than Iraq. But if even some of what he reports here is true, economic power relations are indeed about to shift. And the move away from dollars for oil trading has been predictable for some time.
Ed Webb

EU Policies Forced Refugees Back to War Libya. Now They're Stuck in Rwanda. - 0 views

foreignpolicy.com/...refugees-all-the-way-to-rwanda

Africa Libya Rwanda Eritrea refugees asylum migration migrants EU UNHCR borders mediterranean

shared by Ed Webb on 05 Aug 20 - No Cached
  • the impacts of hardening European Union border policy, which forces refugees back to a dangerous country where they live at the mercy of Libyan militias
  • UNHCR said it had heard allegations of detainees being used as forced labor in the Gathering and Departure Facility, but it could not verify them.) In the months afterward, Alex returned to detention only for his meetings with UNHCR staff. He was interviewed and fingerprinted, and finally given good news: He would be evacuated to Rwanda.
  • Over the past three years, the EU has allocated nearly 100 million euros, around $100 million, to spend on the Libyan coast guard, with the aim of intercepting and stopping boats of migrants and refugees who are trying to reach Europe. Tens of thousands of people who could have their asylum claims assessed if they managed to reach European soil have instead been returned to Libya to spend months or years in for-profit detention centers where sexual violence, labor exploitation, torture, and trafficking have been repeatedly documented. They wait, in the unlikely hope of being selected for a legal route to safety.
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  • 2,427 people last year got the option to go with UNHCR either directly to European countries or to a transit country where their cases can be considered for resettlement to Europe or North America. In contrast, nearly 1,000 refugees and migrants were returned to Libya in the first two weeks of 2020 alone.
  • Both Niger and Romania have previously been used as transit countries, though the number of people going to Niger have slowed because of problems processing cases. This past September, Rwanda announced it will also begin to take evacuees, following negotiations and a deal signed with the African Union and UNHCR.
  • UNHCR is still appealing for funding, saying it hopes to evacuate 1,500 people to Rwanda by the end of 2020, with the program expected to cost nearly $27 million by then. So far, according to numbers provided by UNHCR, the EU has pledged 10 million euros, Norway just over 5 million euros, and Malta 50,000.
  • Though a relatively secure country with much-lauded economic development, Rwanda is also a dictatorship and police state with a tightly controlled media
  • in a small, bare room in a bar outside the camp that same month, a group of refugees gathered to tell me their stories. For more than a year, they had been sending me evidence of human rights abuses from a network of Libyan detention centers, using a series of phones they kept hidden throughout. Now they say they are grateful to be in Rwanda, but they also resent the time they spent locked up.
  • They witnessed deaths from medical negligence and suffered through deliberate food deprivation, torture, and forced recruitment.
  • “Most of our minds are completely spoilt. We’re afraid of motorbikes, of helicopters,”
  • Sonal Marwah, a humanitarian affairs manager with Doctors Without Borders, said survivors suffer from emotional and psychological problems, such as anxiety and depression.
  • They feel they can’t trust anyone anymore, convinced everyone around them has tried to profit from them: whether Libyan authorities, smugglers, the U.N., or the Rwandan government.
  • Some said that it was only when they signed documents on the night before they left Libya that UNHCR staff informed them they might have to stay in Rwanda for longer. There were consequences for backing out at that stage, too. UNHCR confirmed a “very small number” of refugees in Libya refused to go to Rwanda, meaning the agency will not consider them for resettlement or evacuation again.
  • In November, evacuees got another shock when UNHCR’s special envoy for the Mediterranean, Vincent Cochetel, tweeted that refugees in Rwanda have “wrong” expectations. “We have no obligation to resettle all refugees in/from Libya,” he wrote. “They can locally integrate in Rwanda if they want, [while] learning and mentally accepting that there is not just a ‘Europe option.’”
  • Others accused UNHCR of using their evacuations as a public relations coup to show the agency is doing something, while promoting the Rwandan government’s charity, instead of prioritizing evacuees’ welfare.
  • The evacuation program “risks exacerbating a situation where the vast majority of refugees continue to be hosted in developing countries, while richer ones spend their resources on keeping people out at any cost,”
  • UNHCR said it has received 1,150 resettlement pledges from other countries for refugees in Rwanda, with Norway alone pledging to take in 600 refugees (not all of them from Libya). Some Libya evacuees have already been accepted to go to Sweden. The number of available places is still “far outstripped by the needs,”
  • At what point does the EU become responsible for refugees it has forced from its borders through externalization policies? How much suffering can they go through before European officials recognize some obligation?
  • “Africa is Africa,” he has repeated throughout months of contact from both Libya and Rwanda, saying he’s worried about corruption, repression, exploitation, a lack of freedom, and a lack of opportunity in his birth continent. In Europe, Alex believes, refugees “can start a new life, it’s like we [will be] born again. All the suffering and all the torture, this only makes us stronger.”
Ed Webb

European Journal of International Relations-2014-Webber-341-65.pdf.pdf - 0 views

EU Brexit Germany Europe IR politics regionalism analysis

shared by Ed Webb on 08 Nov 16 - No Cached
  • the future of European integration and the European Union is more contingent than most integration theories allow
  • the role of domestic politics
  • he extent to which Europe’s uniquely high level of political integration depends on the engagement and support of the region’s economically most powerful ‘semi-hegemonic’ state, Germany
  • ...41 more annotations...
  • The European Union’s current crisis is symptomatic of a broader crisis or malaise of regional and international multilateralism
  • he EU has proved an extraordinarily robust and crisis-resistant organization. It survived: the collapse of the European Defence Community project in 1954; France’s rejection of two British bids for accession in the 1960s; the empty-chair crisis precipitated by De Gaulle in 1965; the crisis concerning the UK’s contribution to the EU budget in the first half of the 1980s; the semi-destruction of the European Monetary System in 1992–1993; and the defeat of several proposed new treaties in referenda in Denmark, Ireland, France and the Netherlands since the end of the Cold War
  • s serious as the EU’s crisis seemed to be in 2012, there was no unequivocal empirical evidence that the integration process had begun to unwind and the EU to disintegrate. Still no member state had ever left the EU, while several states were queuing to join it. Still no issue-area into which the EU’s competence had previ-ously been extended had been repatriated to the member states. There had still not been any observable formal or actual diminution of the EU’s decision-making and implemen-tation capacities
    • Ed Webb
      Ed Webb on 08 Nov 16
       
      How do things look from the vantage point of 2016?
  • far more regional organizations have failed, in the sense that they collapsed, than succeeded
  • to ask to what extent there has been any change in the variables that have fuelled the integration process in the pas
  • growing distrust among Europe’s big powers over ‘hard’ security issues is not at the root of Europe’s current crisis
  • From a realist perspective à la Mearsheimer, European disintegration would hence most probably result from an American military withdrawal from Europe and a collapse of NATO
  • uncertainty as to the durability or reliability of the American com-mitment to European military security has led to more rather than less security and defence cooperation between EU member states
  • Classical intergovernmentalism focuses our attention on the evolution and degree of convergence of the stances of the French, German and British governments as determi-nants of the future of European integration. Trends in this trilateral relationship in the last two decades do not augur well for the EU’s future. Growing British Euro-scepticism has made Franco-German threats to exclude the UK from the integration process increas-ingly hollow — not because such threats cannot be implemented, but rather because the British government has been increasingly impervious to them
  • The Franco-German ‘tandem’ can still exercise a decisive influence in the EU even after the post-Cold War enlargements from 12 to 27 member states, especially where the two governments form ‘opposing poles’ in the EU around which other member states can coalesce
  • Intergovernmentalism implies that if a fundamental breakdown should occur in Franco-German relations, this would surely lead to European disintegration
  • IR institutionalists argue that such organizations can achieve a high level of durabil-ity or permanence by helping states to overcome collective action problems, carrying out functions that these cannot (notably ‘facilitating the making and keeping of agreements through the provision of information and reductions in transaction costs’), monitoring compliance, reducing uncertainty and stabilizing expectations
  • From an IR institutionalist perspective, the critical questions relating to the EU’s future are thus whether, especially in the enlarged EU, there are sufficiently pervasive common interests linking member states and whether, much as for intergovernmental-ists, the ‘most powerful states’ (Keohane and Nye, 1993: 18) — by which the US is as much meant as the ‘big three’ EU members — continue to support the integration pro-cess
  • From an IR institutionalist as well as an intergovernmentalist perspective, the EU’s future seems likely to ride on the evolution of the Franco-German relationship,
  • While the governments of “sovereign” member-states remain free to tear up treaties and walk away at any time, the constantly increasing costs of exit in the densely integrated European polity have rendered this option virtually unthinkable’
    • Ed Webb
      Ed Webb on 08 Nov 16
       
      For governments, perhaps. But when PM Cameron could not resolve this debate within his own party, he opted for a referendum he assumed he would win. It turned out to be thinkable for 52% of those who voted.
  • Whilst historical-institutionalist scholars generally focus on constraints and the ‘“stickiness” of historically evolved insti-tutional arrangements’ and provide ‘explanations of continuity rather than change’, they nonetheless recognize that critical junctures or crises can bring about ‘relatively abrupt institutional change’
  • ‘punctuated equilibrium’
  • ‘As transnational exchange rises, so does the societal demand for supranational rules and organizational capacity to regulate’
  • growing economic interdependence seems increasingly to fore-close other, unilateral policy options and to compel member governments to forge or acquiesce in closer integration
  • Most federations fail (Lemco, quoted in Kelemen, 2007: 53). Multinational federa-tions, of which the EU is certainly an example, may be more prone to failure than others (Kelemen, 2007: 61)
  • it is still not evident that European-level political party groups can ‘discipline’ or ‘moderate’ the positions taken by their national member parties on EU issues
  • R institutionalism and, more so, clas-sical intergovernmentalism are more circumspect about the EU’s future. Viewed from these perspectives, European integration is a more contingent phenomenon, resting on the scope of member states’ common interests, which has arguably narrowed following successive waves of enlargement, and/or on the extent of hegemonic leadership or con-vergence of interests among the EU’s three big powers. The latter has diminished in as far as the UK has proved hostile to closer integration on most issues, leaving the EU’s fate in these perspectives increasingly in the hands of the Franco-German duo
  • Contrasting post-2000 EU politics with that of the preceding half-century, I sug-gest that European integration is threatened by sharply rising hostility towards the EU in the domestic politics of the member states. Contrasting Europe with other regions, I argue that a ‘semi-hegemonic’, pro-integrationist Germany accounts for the uniquely high level of political integration in Europe, but that there is a significant and growing risk that Germany’s commitment to the European ‘project’ will wane in future
  • Hegemonic stability theory derives the indispensability of hegemonic leadership for economic openness and stability from public-goods theory, holding that only large states have a material incentive to supply non-excludable ‘collective’ goods rather than to ‘free-ride’. Germany has strong economic and political incentives in the maintenance of a politically and economically stable Europe that its governments have historically seen as being best secured through integration
  • In some member states, notably but not only in the UK, there was of course always significant domestic political opposition to European integra-tion. Nonetheless, in the post-Cold War and post-Maastricht Treaty period and especially during the last decade, hostility towards the EU and closer European integration has arguably transformed the domestic political context of EU decision-making to the point where one could more accurately speak of an ‘unpermissive dissensus’ that severely constrains the room for manoeuvre of member governments on EU issues
  • At the same time as the balance of political power in many member states has tilted sharply towards ‘anti-European’ political forces, the capacity of governments to control the EU agenda in the member states — a prerequisite for the smooth functioning of the processes of negotiation and ratification of EU policies — has been eroded
  • tension between the requirements or logic of domestic politics, on the one hand, and those of the EU (and international financial markets), on the other
  • , Germany has increasingly visibly assumed the role of the Eurozone’s and the EU’s ‘indispensable’ member
  • growing levels of economic exchange and economic interdependence do indeed create pressures on governments to institutionalize their economic ties. However, levels of political integration in East Asia, the Asia-Pacific and North America are not even remotely comparable to those in Europe
  • It is rather the presence, in the form of Germany, of a pro-integrationist regional hegemon that best explains Europe’s comparatively very high level of political integra-tion
  • What has made the EU exceptional in respect of regional political integration is neither an exceptionally high level of economic integration nor the presence of a ‘leading state’ as such, but rather the fact that, compared with other ‘lead-ing’ regional powers, the member state that occupies this role in the EU — Germany — has pursued a much more radical agenda involving the creation of a quasi-federal European state
  • Germany needs good and close relations with other European states to avert the risk of diplomatic isolation and a resurgence of traditional ‘balance-of-power’ politics in the region
  • EU policy choices do not disproportionately reflect German preferences. Compromise and consensus, not a German diktat, are the rules in EU decision-making
  • As a regional paymaster, but hitherto not typically a disproportionately influential rule-maker, Germany was long more a ‘semi-hegemonic’ than ‘normal’ hegemonic power in the EU
  • A Grand Coalition of pro-European Social and Christian Democrats, on the other hand, may, as the experience of other EU member states suggests, spawn the emergence and growth of new national-populist parties and/or, for electoral-political motives, the transformation into Euro-sceptical movements of those established parties that would then be in the opposition
    • Ed Webb
      Ed Webb on 08 Nov 16
       
      Since this article was written, the Alternativ für Deutschland party, a far-right populist, anti-immigrant, anti-EU, racist party, has made some inroads in local assemblies in Germany. They don't yet appear a major threat at the national level, though.
  • the EU’s future is more contingent
  • the EU is very vulnerable to domestic political backlashes manifested in the rise of national populism in the member states, particularly so long as few citizens in the member states share a strong European identity and there are no strong pan-European political parties that can effectively integrate and mediate their conflicting interests
  • German domestic politics therefore matters more for the EU’s future than that of any other member state
  • n more than 60 years, the European integration process has confronted and survived many crises. But it has never so far had to confront a crisis ‘made in Germany’.
  • The plethora of regional and pluri- or minilateral trade agreements signed across the world over the last decade or so cannot disguise the fact that most regions in the world remain at best only very weakly politically integrated and regionalorganizations therefore cannot be relied upon to institutionalize and secure peaceful cooperation among their members.
  • Is it possible that, as hegemonic stability theory would suggest, the roots of the gathering crisis of interna-tional multilateralism are to be found in the ‘end of the United States’ unipolar moment’ (Layne, 2006) and the arrival at long last of the long-anticipated decline in the capacity as well as willingness of the US to play the role of a stabilizing international hegemon?
Ed Webb

How the coup in Niger could expand the reach of Islamic extremism, and Wagner, in West ... - 0 views

apnews.com/...29a854e625eb8e15cd2a8c65048bd1

Niger sahel coup military US USA France migration extremism terrorism Russia ECOWAS UN Wagner

shared by Ed Webb on 27 Jul 23 - No Cached
  • Niger, which until Wednesday’s coup by mutinous soldiers had avoided the military takeovers that destabilized West African neighbors in recent years.
  • a Francophone region where anti-French sentiment had opened the way for the Russian private military group Wagner.
  • Signaling Niger’s importance in the region where Wagner also operates, U.S. Secretary of State Antony Blinken visited in March to strengthen ties and announce $150 million in direct assistance, calling the country “a model of democracy.”Now a critical question is whether Niger might pivot and engage Wagner as a counterterrorism partner like its neighbors Mali and Burkina Faso, which have kicked out French forces. France shifted more than 1,000 personnel to Niger after pulling out of Mali last year.
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  • Niger has been a base of international military operations for years as Islamic extremists have greatly expanded their reach in the Sahel. Those include Boko Haram in neighboring Nigeria and Chad, but the more immediate threat comes from growing activity in Niger’s border areas with Mali and Burkina Faso from the Islamic State in the Greater Sahara and the al-Qaida affiliate Jama’at Nusrat al-Islam wal-Muslimin, known as JNIM.
  • Mali’s military junta last month ordered the 15,000-strong United Nations peacekeeping mission to leave, claiming they had failed in their mission. However, Wagner forces remain there, accused by watchdogs of human rights atrocities.
  • The United States in early 2021 said it had provided Niger with more than $500 million in military assistance and training programs since 2012, one of the largest such support programs in sub-Saharan Africa. The European Union earlier this year launched a 27 million-euro ($30 million) military training mission in Niger.
  • The U.S. has operated drones out of a base it constructed in Niger’s remote north as part of counterterrorism efforts in the vast Sahel. The fate of that base and other U.S. operational sites in the country after this week’s coup isn’t immediately known.
  • West Africa’s Sahel region has become one of the world’s deadliest regions for extremism. West Africa recorded over 1,800 extremist attacks in the first six months of this year, resulting in nearly 4,600 deaths, a top regional official told the United Nations Security Council this week.
  • Niger is one of the world’s poorest countries, struggling with climate change along with migrants from across West Africa trying to make their way across the Sahara en route toward Europe. It has received millions of euros of investment from the EU in its efforts to curb migration via smugglers.
Ed Webb

Murano glass factories forced to shut down furnaces during Europe's gas crisis - The Wa... - 0 views

www.washingtonpost.com/...murano-glass-gas-crisis

Italy art industry environment energy trade competition gas

shared by Ed Webb on 04 Feb 22 - No Cached
  • In a typical year, the glass factories here power down only once, for maintenance in August. But with Europe in the midst of an energy crisis, facing a 400 percent increase in natural gas bills, the gas-fueled blazes needed to produce Murano’s richly colored, ornate creations have become a luxury the glassmakers can scarcely afford.
  • The gas crisis stems from a combination of factors — insufficient stockpiles within Europe, constrained supply from Russia and increased competition from Asia for access to liquid natural gas. And with the Kremlin threatening to cut off flows if it is hit with sanctions over Ukraine, the crisis could get worse.
  • For Murano’s glassmakers, who were already reeling from a pandemic lockdown in 2020 and massive flooding in 2019, support has come in the form of regional and national subsidies intended to help them get through the winter. But with gas prices continuing to rise, the subsidies aren’t expected to last them beyond next month, tops. That’s led companies like Effetre to keep their furnaces off — and some to consider closing up shop for good.
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  • In the eight centuries of Murano glassmaking, the use of natural gas is relatively new, adopted only in the 1950s.
  • But environmental regulations adopted in the interim prevent going back to wood. Local emissions would far exceed the legal threshold, explained Francesco Gonella, a physicist who specializes in artistic glass. “You may have a wood-powered stove up on a mountain, but you can’t have hundreds of wood-powered furnaces going at 1100 degrees Celsius,”
  • The glassmaking industry is responsible for only a tiny fraction of Italy’s emissions. But the work is energy-intensive. In a normal year, the Murano factories guzzle more than 13 million cubic meters of natural gas, according to a market insider speaking on the condition of anonymity because he wasn’t authorized by his company to talk. That’s as much as a town of 30,000 people would typically use in domestic heating. Yet Murano is an island of 5,000.
  • The range and depth of those colors, along with the level of artistry, help authentic Murano glass stand out from mass-produced versions from China.
  • “Murano’s is an unlucky sector,” said Gonella, the physicist. “It finds itself dealing with problems of different natures: commercial, because China rolls out counterfeit glass; environmental; and now the blow delivered by bills that are unsustainable for many.”
  • Electric furnaces can’t provide the kind of heat or artistic control they need. The sector has been looking into hydrogen as an alternative fuel. But that would require building a whole new network of pipes, designed to withstand corrosion from the hydrogen running through them.
  • “we’ll need a massive investment in local renewable technologies that won’t require the massive costs of importing power from the outside. Geothermic, absolutely, all around the island, and on it. Wind farms, off the lagoon, catching wind at dawn and dusk. And solar. All of these factories also need to be covered in solar panels.”
  • Mattia Rossi, 43, shuttered his family business this month because of financial problems made worse by skyrocketing bills.“If I’m shelling out 5,000 euros for the electric bill one month and 15 [thousand] the next, I won’t be able to raise the price by 30 to 40 percent. My goblet would no longer cost 80, but 150 euros. People just won’t buy it then. Because glass is a beautiful thing, but it’s not bread and milk. It’s unnecessary.”
Ed Webb

How Goldman Sachs Created the Food Crisis - By Frederick Kaufman | Foreign Policy - 0 views

www.foreignpolicy.com/..._sachs_created_the_food_crisis

food markets speculation hunger land agriculture

shared by Ed Webb on 24 Aug 12 - Cached
  • in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food
  • After World War II, the United States was routinely producing a grain surplus, which became an essential element of its Cold War political, economic, and humanitarian strategies -- not to mention the fact that American grain fed millions of hungry people across the world
  • Futures markets traditionally included two kinds of players. On one side were the farmers, the millers, and the warehousemen, market players who have a real, physical stake in wheat. This group not only includes corn growers in Iowa or wheat farmers in Nebraska, but major multinational corporations like Pizza Hut, Kraft, Nestlé, Sara Lee, Tyson Foods, and McDonald's -- whose New York Stock Exchange shares rise and fall on their ability to bring food to peoples' car windows, doorsteps, and supermarket shelves at competitive prices. These market participants are called "bona fide" hedgers, because they actually need to buy and sell cereals. On the other side is the speculator. The speculator neither produces nor consumes corn or soy or wheat, and wouldn't have a place to put the 20 tons of cereal he might buy at any given moment if ever it were delivered. Speculators make money through traditional market behavior, the arbitrage of buying low and selling high. And the physical stakeholders in grain futures have as a general rule welcomed traditional speculators to their market, for their endless stream of buy and sell orders gives the market its liquidity and provides bona fide hedgers a way to manage risk by allowing them to sell and buy just as they pleased.
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  • Every time the due date of a long-only commodity index futures contract neared, bankers were required to "roll" their multi-billion dollar backlog of buy orders over into the next futures contract, two or three months down the line. And since the deflationary impact of shorting a position simply wasn't part of the GSCI, professional grain traders could make a killing by anticipating the market fluctuations these "rolls" would inevitably cause. "I make a living off the dumb money," commodity trader Emil van Essen told Businessweek last year. Commodity traders employed by the banks that had created the commodity index funds in the first place rode the tides of profit
  • dozens of speculative non-physical hedgers followed Goldman's lead and joined the commodities index game, including Barclays, Deutsche Bank, Pimco, JP Morgan Chase, AIG, Bear Stearns, and Lehman Brothers, to name but a few purveyors of commodity index funds. The scene had been set for food inflation that would eventually catch unawares some of the largest milling, processing, and retailing corporations in the United States, and send shockwaves throughout the world
  • Not only does the world's food supply have to contend with constricted supply and increased demand for real grain, but investment bankers have engineered an artificial upward pull on the price of grain futures. The result: Imaginary wheat dominates the price of real wheat, as speculators (traditionally one-fifth of the market) now outnumber bona-fide hedgers four-to-one.
  • a problem familiar to those versed in the history of tulips, dot-coms, and cheap real estate: a food bubble
  • when the global financial crisis sent investors running scared in early 2008, and as dollars, pounds, and euros evaded investor confidence, commodities -- including food -- seemed like the last, best place for hedge, pension, and sovereign wealth funds to park their cash. "You had people who had no clue what commodities were all about suddenly buying commodities," an analyst from the United States Department of Agriculture told me. In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since
  • The more the price of food commodities increases, the more money pours into the sector, and the higher prices rise
  • from 2005 to 2008, the worldwide price of food rose 80 percent -- and has kept rising
  • speculation has also created spikes in everything the farmer must buy to grow his grain -- from seed to fertilizer to diesel fuel
  • The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion people across the world who spend more than 50 percent of their income on food, the effects have been staggering: 250 million people joined the ranks of the hungry in 2008, bringing the total of the world's "food insecure" to a peak of 1 billion -- a number never seen before.
  • I asked a handful of wheat brokers what would happen if the U.S. government simply outlawed long-only trading in food commodities for investment banks. Their reaction: laughter. One phone call to a bona-fide hedger like Cargill or Archer Daniels Midland and one secret swap of assets, and a bank's stake in the futures market is indistinguishable from that of an international wheat buyer. What if the government outlawed all long-only derivative products, I asked? Once again, laughter. Problem solved with another phone call, this time to a trading office in London or Hong Kong; the new food derivative markets have reached supranational proportions, beyond the reach of sovereign law
  • nervous countries have responded instead with me-first policies, from export bans to grain hoarding to neo-mercantilist land grabs in Africa. And efforts by concerned activists or international agencies to curb grain speculation have gone nowhere. All the while, the index funds continue to prosper, the bankers pocket the profits, and the world's poor teeter on the brink of starvation
Ed Webb

Iran cutting sensitive nuclear stocks, much work remains: IAEA | Reuters - 0 views

www.reuters.com/...ear-iaea-idUSBREA220O720140303

Iran nukes nuclear UN IAEA

shared by Ed Webb on 03 Mar 14 - No Cached
  • Among measures Iran is taking since the interim agreement took effect on January 20 is the dilution of its stock of higher-enriched uranium to a fissile concentration less suitable for any attempt to fuel an atomic bomb.Yukiya Amano, director general of the International Atomic Energy Agency (IAEA), indicated that Iran had made sufficient progress in this regard to receive a scheduled March 1 installment of $450 million out of a total of $4.2 billion in previously blocked overseas funds.
  • Separately, the IAEA is investigating suspicions - largely believed to be based on intelligence provided by Western states and Israel - that Iran has researched how to construct an atomic bomb, a charge Tehran denies. Iran says it is Israel's assumed nuclear arsenal that threatens Middle East peace.
  • Amano said 17 IAEA member states had so far expressed interest in contributing extra-budgetary funds to help finance the IAEA's extra workload in monitoring the implementation of the Geneva agreement in Iran, but that more was needed. "We are still short of some €1.6 million ($2.21 million)," Amano said.The U.N. agency said in January it needed about 5.5 million euros from member states to pay for its increased activities in Iran. This would cover more inspectors sent to Iran and the purchase of specialized surveillance-related equipment.
Ed Webb

Les Leopold: Is there a Global War Between Financial Theocracy and Democracy? - 0 views

www.huffingtonpost.com/...a-global-war-bet_b_608703.html

globalization finance economics markets democracy opinion

shared by Ed Webb on 07 Jul 10 - Cached
  • There is no executive committee of financial elites. There's no international conspiracy, no Elders of Zion. Instead these markets are pulled and pushed by about 50 very large banks and financial institutions. This is where much of the nation's $2 trillion in hedge fund money roams. This is where the top six US banks frolic. They don't have to sit around a table strategizing. They instantly sense threats to their power. They instantly smell profitable openings and they're poised to grab what they can, whenever they can. They thrive on turmoil, which gives them new "proprietary" trading opportunities to exploit. Volatility means big bucks, especially now that the largest players know that the government will back up even their wildest gambles. History has just proven that they are way too big to fail. Of course they still have to lobby government officials--many of whom either were bankers, or will be once they leave office. But their most powerful lever on government is through the market itself: Here, by moving vast quantities of money around, they can instantly veto policies they don't like. If the EU talks seriously about financial transaction taxes, the markets go down the Euro grows weaker, and interest rates rise--making it more expensive for governments to borrow the money they need to operate. Politicians have learned to "listen" to the markets and are conditioned to placate them. Should a nation state get out of line (Greece, Italy, Spain, Portugal, etc), the markets slap them silly. Politicians rush to the scene and start slicing social spending. If instead they demand new taxes on financial elites to reduce public debt, the markets respond with even more fury. Money flees.
Ed Webb

Brexit Is Destroying Britain's Constitution - Foreign Policy - 0 views

foreignpolicy.com/...stroying-britains-constitution

UK Britain Brexit constitution politics crisis

shared by Ed Webb on 18 Dec 18 - No Cached
  • despite the fervent hopes of remainers, nothing that happened last week makes an “exit from Brexit” more likely. Instead, Brexit compromises conceivably capable of bridging the country’s divides, such as the “Norway plus” option proposed by moderate Conservative MP Nick Boles, are now harder than ever to reach
  • Britain is teetering more wildly than ever on the edge of an outright constitutional crisis
  • the strength of the Scottish National Party has made working majorities a thing of the past
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  • Without a working majority, party leaders must pay attention to their hard-liners, or, as some Conservative Party members have been known to call them, “swivel-eyed loons.”
  • Normally, Britain’s flexible political system could accommodate one party’s indulgence of extremism: if the Conservatives found themselves advocating something radical such as leaving the EU, this would typically open up space in the center for Labour to position itself as the defender of economically pragmatic close relations with it. However, Labour is currently led by the far-left and anti-European Jeremy Corbyn, keen to facilitate Brexit and take advantage of the economic chaos to implement a radical socialist agenda.
  • new, essentially sectarian political identities created by the Brexit referendum itself. Leavers and remainers move in different social circles and have different understandings of the central facts of Brexit
  • rampant reports of conspiratorial plots within the cabinet: remainers plotting a new referendum (and seeking legal advice on whether Britain’s decision to leave could be revoked by executive action, without consulting Parliament) and anti-Europeans threatening to resign from the government, reject the withdrawal agreement Theresa May negotiated with the EU, and leave without any sort of deal at all. (The Bank of England estimated that such a “disorderly” Brexit would cause unemployment to almost double, inflation to rise to more than 6 percent, house prices to fall by 30 percent, and the pound to fall below parity with the euro.)
  • There is no majority for any policy at all in Parliament
  • The true limits of their power now revealed, no-deal Brexiteers are now contemplating a legislative strike, which would deprive the government of its majority for everything except confidence votes, or even forming a new hard-right party. That would allow them to vote against the government in a confidence vote and provoke an election. The effect of a new party would, however, be to split the anti-Labour vote and give Jeremy Corbyn a good chance of entering Downing Street
  • The only certainty is that Britain’s political rewards now go to men and women who promote polarization, not compromise
  • David Cameron’s decision to hold this referendum about a question so fundamental to Britain’s national identity opened up this chasm in the country
  • the young now identify as pro-European in a way that would never have occurred to them before the 2016 vote. The weight of their increasing numbers will eventually tell. Yet the boomers’ demographic albatross will press further still if, as is in my view probable, English political chaos stimulates Scotland to choose independence and (though this is less likely) Northern Ireland to unite with the Irish Republic.
  • A decade of intense political conflict is a grim prospect for a country with few formal institutions and weak legal oversight of the political process. The desire to seize positions of power and hold them against equally matched enemies is more associated with countries on the descent toward civil war than mature liberal democracies like the United Kingdom
Ed Webb

Chinese yuan: Renminbi officially added to the IMFs Special Drawing Rights currency bas... - 1 views

qz.com/...drawing-rights-currency-basket

China currency IMF exchange finance

shared by Ed Webb on 03 Oct 16 - No Cached
  • Starting today, the yuan is officially a member of the International Monetary Fund’s basket of global reserve currencies.
  • this group of currencies, known as Special Drawing Rights (SDR), forms a kind of pseudo-currency—used only by the IMF—to supplement countries’ official reserves. The value of the SDR is determined by the set of currencies in the basket, each of which is given a weighting toward the final calculation
  • The yuan is the first to be added to SDR since the euro in 1999, though that was only to replace the phased-out Deutsche mark and French franc
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  • The change will not lead to a precipitous rise in demand for yuan because the total value of SDRs used as reserves pales in comparison to that of dollars.
  • the yuan will not be threatening the dollar’s reserve status anytime soon, and will have a hard time doing so without further liberalization of the currency from the Chinese government
Ed Webb

US Joins in Global Movement to Make Asylum Harder to Obtain - 0 views

www.latinorebels.com/...usmakingasylumharder

migration migrants asylum US EU Libya Turkey Cameroon Mexico Americas Australia

shared by Ed Webb on 23 Nov 19 - Cached
  • The U.S. is increasingly aligning itself with wealthy countries in Europe and elsewhere to make asylum a more distant prospect. On Thursday, American authorities sent a Honduran man from El Paso, Texas, to Guatemala. It marked the first time the U.S. government directed an asylum-seeker back to that country under the new policy, which gave him an option to file a claim there. He decided against filing a claim and returned to Honduras, according to Guatemala’s foreign ministry.
  • In nine months, the administration returned more than 55,000 asylum-seekers to Mexico to wait for their cases to wind through U.S. courts.
  • The U.S. isn’t alone in asking other countries to block migrants. After about 1 million refugees traveled through Turkey and Greece to seek safety in Europe, the European Union agreed in 2016 to pay Turkey billions of euros to keep them in refugee camps. The EU has also funded the Libyan Coast Guard to stop Africans from crossing the Mediterranean, where thousands have drowned. Libyan forces have kept refugees in squalid conditions and inflicted torture.
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  • Since 2001, Australia has intermittently blocked boats from Asia and detained asylum-seekers on Christmas Island, a tiny Australian territory, or sent them to Papua New Guinea and Nauru, an island nation of 10,000 people. Australia pays detention costs.
  • Cameroonians hoping to follow Nkeze’s path face mounting obstacles. Ecuador, the main gateway from Europe, began requiring visas for Cameroonians and 10 other nationalities in August, including six in Africa. Under heavy pressure from Trump, Mexico is bottling up Cameroonians and other U.S.-bound asylum-seekers near its southern border with Guatemala.
  • “There’s this race to the bottom around the world, and governments are looking to each other and trying to figure out what’s the harshest policy they can get away with,” said David FitzGerald, a sociology professor at University of California at San Diego and author of Refuge Beyond Reach: How Rich Democracies Repel Asylum-seekers.
  • “They essentially want you to bring a note from your torturer before they are willing to let you stay in the U.S,”
Ed Webb

Canada-Australia-U.K. Alliance Could Stand Up for Liberal Internationalism - 0 views

foreignpolicy.com/...rump-canada-australia-alliance

IR analysis opinion Russia China Canada Australia UK Britain institutions UN G7 G20

shared by Ed Webb on 01 Jul 20 - Cached
  • This club of three—as a new C-3 grouping of Canada, Australia, and Britain—has legs. But the idea must be reclaimed from the nationalist right: Not only is deepening foreign-policy coordination among Ottawa, Canberra, and London increasingly attractive amid the accelerating decay of the American-led world order, but this grouping has shown itself over Hong Kong to be far more meaningful in world affairs than seemed possible
  • Canada, Australia, and Britain are all facing a moment of crisis in their foreign policies. Canada’s humiliating failure to make it onto the United Nations Security Council reflects that it can now be picked on by China, or even Saudi Arabia, as the United States weakens. Australia is faced with cyberattacks and growing Chinese pressure. Britain, now outside the European Union, has been repeatedly threatened by China over Hong Kong, Huawei, HSBC, and nuclear power plants. All three are struggling to make their voices heard in international politics, in the various G-groups, in global bodies, and in President Donald Trump’s Washington.
  • Sadly, for all three, Germany and France are in a very different place from them on the authoritarian powers. Berlin, constrained by huge exports to China, wants to find a middle way between Washington and Beijing and is not ready to throw the EU into greater competition that could jeopardize critical trade for the sake of the interests of either Canada, Australia, or Britain. Paris, similarly, thinks differently on Russia. French President Emmanuel Macron’s emerging vision for a European Security Council or “Eurogroup”-style body including Russia, Turkey, and Britain is well outside the anti-authoritarian frame than Ottawa, Canberra, and London share.
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  • Chinese and Russian aggression against the democracies is likely to grow, the United States might critically weaken, and the EU seems firmly set on pursuing a middle path. Instead of worrying about looking back to the past, leaders in Ottawa, Canberra, and London should embrace the idea and propose a significant deepening of their foreign-policy coordination. This is most definitely not about “getting the band back together,” as one British Conservative member of Parliament greeted a trade talk announcement, but three middle powers building an anti-authoritarian group to resist great-power bullying in the 21st century.
  • A mini C-3 format would offer the best approach: a summit with follow-up that is both flexible and lightweight enough to get off the ground but with a permanent working group in foreign ministries advancing dossiers and initiatives. As the C-3 are all Commonwealth countries, summits could be timed to coincide with the biennial Commonwealth Heads of Government Meeting, where the leaders of Canada, Australia, and Britain regularly meet anyway.
  • Drawing both on Britain’s joint initiative with Canada to block Putin attending the G-7 and on Canada’s humiliating experience at the U.N., among this C-3’s first tasks should be to coordinate joint positions inside the U.N., G-7 and G-20. As far as major goals are concerned, this could include supporting any future attempts of Canada to win a seat on the U.N. Security Council and for Australia to formally join the G-7.
  • This is not about replacing working with the EU or the United States but creating a group for Canada, Australia, and Britain to jointly present tougher anti-authoritarian packages to big powers than had they tried to individually present them alone. The C-3, like the E-3 to the EU, would be complementary to existing Euro-Atlantic bodies.
  • deeper cooperation between Britain, Canada, and Australia has an image problem
  • imperial nostalgia or conservative culture politics
  • too anchored on ethnic fraternity
  • the idea needs to be decolonized
  • what about other middle powers? Why not include, say, Japan? This is where two critical principles of international politics come into play: Does your grouping have enough like-mindedness to be able to function and enough load-bearing capacity to get anything done? What Canada, Australia, and Britain are after is mutual geopolitical support; adding members that aren’t willing to offer that risks creating another talking shop like the Franco-German Alliance for Multilateralism. That group, which stretches from Chile to Kazakhstan, lacks the ability to agree on anything of substance—and the power to act on it.
  • there are simply not a lot of like-minded democracies to go around
  • Ottawa, Canberra, and London didn’t need each other in a U.S.-led world order or in a relatively benign world without authoritarian superpowers. But that system has decayed. Deep divisions, not just between the Europeans and Donald Trump, but with much of the U.S. national security establishment, are breaking up the old Washington-led ideological West. The common anti-authoritarian frame that once glued together Western foreign policy has come unstuck
  • In this world, the C-3 is a liberal international, not a nationalist, cause
Ed Webb

What Lockdown? World's Cocaine Traffickers Sniff at Movement Restrictions - OCCRP - 0 views

www.occrp.org/...sniff-at-movement-restrictions

IR narcotics drugs trafficking pandemics crime networks

shared by Ed Webb on 28 May 20 - Cached
  • the predicament facing cocaine smugglers, as the global pandemic has increased scrutiny on them and disrupted their smuggling and distribution networks. But it also highlights their flexible approach to their trade, which has kept business booming even as many of the world’s legal sectors have ground to a halt.
  • OCCRP reporters have found that the world’s cocaine industry — which produces close to 2,000 metric tons a year and makes tens of billions of dollars — has adapted better than many other legitimate businesses. The industry has benefited from huge stores of drugs warehoused before the pandemic and its wide variety of smuggling methods. Street prices around Europe have risen by up to 30 percent, but it is not clear how much of this is due to distribution problems, and how much to drug gangs taking advantage of homebound customers.
  • In March and April, Spain seized over 14 tons of cocaine in inbound shipments — a figure six times higher than the same period the previous year, said Manuel Montesinos, the deputy director of Customs surveillance at the Spanish Taxation Agency. “We are very struck by the frenetic pace,” Montesinos said. “Almost every day we receive alerts of detections of suspicious operations.”
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  • As many countries begin partially reopening their economies, traffickers may now be in a position to become more powerful than ever. With economies in distress and many businesses facing ruin, cash-rich narcos may be able to cheaply buy their way into an even bigger share of the legitimate economy.
  • “There has always been a stock, it’s a very organized chain. It’s the way to control everything, especially the price. The stocks are on beaches such as Tarena [near the border with Panama], banana plantations, in the jungle. The stashes are everywhere,”
  • Traditionally, smugglers have used small, very fast speedboats, as well as fishing vessels and submarines, to ply their northern route. Lockdowns have made these methods harder to use, mainly for logistical reasons. So instead, smugglers are turning back to older, slower routes that are often broken up in parts.
  • Unlike exports to the United States, cocaine bound for Europe is typically moved in legal air and sea cargoes, especially fast-moving fresh goods such as flowers and fruit. The latter, as food, has continued to move unimpeded during the pandemic, helping feed Europe’s 9.1 billion euro-a-year cocaine habit. Colombia’s banana industry, for example, has been exempt from local lockdown measures, allowing cocaine to keep moving through the crop’s supply chain. “[Anyone] in the authorities or security that meddles with this route goes down,” said Rául, the Gulf Clan member, adding that people who are paid off to facilitate the smuggling of cocaine have an incentive to keep the drugs flowing. “Everybody eats,” he said.
  • Mexican cartels have used the crisis as a public relations opportunity. People associated with the cartels, including the daughter of imprisoned Sinaloa cartel chief Joaquín “El Chapo” Guzmán, have publicly distributed food and other essential items to the poor. Meanwhile, the country’s drug violence continues unabated, claiming an average of 80 lives per day.
  • cocaine continues to flow from South America to Europe and North America. Closed trafficking routes have been replaced with new ones, and street deals have been substituted with door-to-door deliveries.
  • Ramón Santolaria, the head of anti-narcotics at Spain’s national police in Catalonia, said cocaine traffickers may have mistakenly assumed that the pandemic would have reduced monitoring at ports. The cartels “have to continue exporting,” Santolaria said. “They are like a company. They can’t store everything in their countries, since it would be very risky.”
  • Italy has fallen silent as a point of arrival, despite being home to mafia groups that dominate Europe’s cocaine trade. Seizures dropped by 80 percent over the months of March and April compared to the same period last year
  • “Italy did not receive much via ports or airports and that is because during lockdown we have been controlling them a lot,” said Marco Sorrentino, the head of anti-mafia department of Italy’s financial police, the Guardia di Finanza. Italian crime groups have shifted their operations to Spain, where they have large “colonies” according to Sorrentino. “Italian mafias and their partners thus sent cocaine mainly to Algeciras or Barcelona, and then from there they moved it on wheels to the rest of Europe and to Italy,” he said. “As cover-up they used trucks filled with fresh fruits or also soy flour,” which resembles cocaine.
  • At the street level, lockdowns have played havoc with cocaine sales — but have also failed to stop the trade. But in some cases at least, dealers’ adaptations may have actually put them in a more profitable position than before, as cocaine users are desperate and confined at home. “Even though they don’t lack product, they have raised prices a bit and are cutting it more,”
  • The solution? Delivering it to customers in the guise of food orders, or couriered by essential workers carrying documents that give them permission to move around freely. Dealers have also staked out positions in socially distanced queues outside supermarkets — one of the only permitted places to gather in public under Italy’s strict lockdown rules, which began easing up in early May.
  • The main dark web marketplaces have seen an increase in sales of roughly 30 percent since lockdown measures started coming into effect worldwide
  • “Private citizens who are in need and won’t have access to a bank loan will be victims of loan sharks,” he said. “But what worries us the most is that licit companies might be in need, and be approached by mafia organizations that will propose to become minority shareholders.” “And once this happens, they actually take over the whole company,”
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