Group items tagged

Russia and Ukraine supply almost a third of the world’s wheat exports and since the Russian assault on its neighbour, ports on the Black Sea have come to a virtual standstill. As a result, wheat prices have soared to record highs, overtaking levels seen during the food crisis of 2007-08.

agricultural experts and policymakers have warned of the impact of delayed shipments on countries reliant on the region for wheat, grain, sunflower oil and barley

The surge in prices will fuel soaring food inflation — already at a seven-year high of 7.8 per cent in January — and the biggest impact will be on the food security of poorer grain importers, warned analysts and food aid organisations

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.

Lang’s assessment that the regime is bankrupt was based on five conjectures. Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly. Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang. Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession. Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010). Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 51.6 percent, Lang said. Once the “economic tsunami” starts, the regime will lose credibility and China will become the poorest country in the world, Lang said. Several commentators have expressed broad agreement with Lang’s analysis.

There’s an undeniable voyeuristic frisson of seeing a man who once commanded a superpower hawking pizza

it’s a beautiful short film and a very weird advertisement: Who would have thought that a bunch of Muscovites bickering about the end of communism would be a natural pitch for pizza?

In 1991, the heads of the former Soviet republics had voted to give Gorbachev a pension of 4,000 rubles per month—but it was not indexed to inflation. By 1994, according to Meduza, his pension was worth less than $2 a month.

In this context of accelerating ecological breakdown and economic crises, the degrowth movement has steadily been gaining ground. Based on a robust body of scientific literature, degrowth proponents suggest that capitalism’s demand for unlimited growth is destroying the planet. Only degrowth policies can repair this by rapidly scaling back our material and energy use, slowing down production and transitioning to an economy focused around needs, care and the sharing of wealth.

In the 1990s, it was reintroduced as a “missile word” against the then-dominant ideology of sustainable development and green growth: an ideology that was being used by governments and international organisations to greenwash ineffective climate politics, attacks on public services and predatory lending.

Capitalism in the Anthropocene by Kohei Saito, a Japanese Marxist scholar, sold more than half a million copies and became a bestseller in Japan.

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

Humans have a “tendency to look backward with misty eyes, to see the past as much more benign, simple, and innocent than it really was,” Mueller wrote in 1995. “That is, no matter how much better the present gets, the past gets better faster in reflection, and we are, accordingly, always notably worse off than we used to be. Golden ages, thus, do happen, but we are never actually in them: they are always back there somewhere.” What Mueller was describing was retrospection bias.

With the benefit of hindsight, the past seems relatively predictable and sensible, while the present is always chaotic and uncertain. “We are standing at an unprecedented moment in human history,” say respected politicians and generals, as if that is not always the case. Inevitably, what results are mistaken—and sometimes catastrophic—foreign-policy decisions

The practical consequences of misremembering a supposedly stable global past, and misrepresenting the allegedly threatening present (and future), are many. The first is the habitual practice of foreign threat inflation

there are several obvious ways in which America’s recent conduct abroad has led to greater insecurity, paranoia, loss of trust, and division within the United States

Whatever Americans’ intentions may have been, U.S. actions have sometimes caused enormous suffering in other countries—through sanctions, covert action, support for thuggish dictators, and a remarkable ability to turn a blind eye to the brutal conduct of close allies—not to mention America’s own far-flung military activities. Given the countries the United States has invaded, the bombs it’s dropped, and the drone strikes it’s conducted, it is any wonder that some people in other places wish Americans ill?

there is a mountain of evidence—including the official 9/11 Commission Report—showing that what drove anti-American extremism was opposition to U.S. policy

For the Romans, Ottomans, Russians and British, transportation infrastructure was an essential tool of conquest. It is no different for China today. In a world of mostly settled boundaries, China seeks to control infrastructure and supply chains to achieve leverage over its neighbors as well as carve through them to its destination: the oil-rich Gulf region and the massive export markets of Europe. From oil refineries and ports to internet cables, China is maneuvering for infrastructural access where it cannot dominate territory. Even where China shifts boundaries by force, the purpose is nonetheless to pave the way for its infrastructure.

Around the time China joined the World Trade Organization in 2001, it suddenly found itself the world’s largest importer of raw materials as well as one of the largest exporters of consumer goods. Yet still, it was subject to the “Malacca trap”: Most of its trade passes through the narrow Strait of Malacca, the world’s busiest waterway, which it does not control. Building road and rail infrastructure across neighboring states was thus something of a defensive measure to reduce dependence on a single chokepoint.

Whereas the Soviet Union was not integrated into the global economy, China is the top trade partner of more than 120 countries, and is now the largest international creditor as well. China’s main instruments in pursuit of its grand strategy have been connectivity projects, not military incursions. Rather than conquer colonies, China has sought to buy countries. 

Dorsey is also a doom-monger about fiat currencies – those issued by governments. “Hyperinflation,” he oracularly warns, “is going to change everything. It’s happening.” This is baseless. Recent inflationary pressures due to the increased costs of production and transit caused by Covid and extreme weather patterns are real. But there is no hyperinflation in the global economy. Given Dorsey’s profile and potential impact on investors, it could be considered a reckless thing to say; but it also reflects the strange ideology of all bitcoin enthusiasts.

Currently, one bitcoin will trade for £42,973. But it wouldn’t be worth a dime if enough investors hadn’t decided to treat it as though it were gold. It is a “hyperstition”: a fiction that makes itself true because enough people believe in it.

typical of the “California ideology”, which blends the values of the libertarian right with the countercultural ethos of some of the internet’s pioneers

The Ukraine conflict may be a matter of global concern, but states’ responses to it continue to be conditioned by internal political debates and foreign policy priorities.

China has hewed to a non-position on Russian aggression – neither condemning nor supporting the act, and declining to label it as an invasion – while lamenting the current situation as “something we do not want to see”. With an eye to the West, Beijing abstained on rather than vetoing a Security Council resolution calling on Russia to withdraw from Ukraine, and reports indicate that two major Chinese state banks are restricting financing for Russian commodities. Beijing now emphasises the principles of territorial integrity and sovereignty in its statements, a point that had either been absent from earlier statements or more ambiguously discussed as “principles of the UN Charter”.

the worldview that major powers can and do occasionally break the rules