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Contents contributed and discussions participated by Ed Webb

Ed Webb

An open letter to the New York Times concerning Thomas Friedman | Daniel W. Drezner - 2 views

  • Why not "negotiate with the Iranian people?"  Well, to get technical about it, they're not the ones controlling Iran's nuclear program.  That's not a minor issue.  For all this talk about how states are irrelevant in the 21st century, on matters of hard security not much has changed.  Lest Friedman or anyone else doubt this, recall that the Iranian state has proven itself more than capable of suppressing the Iranian people over the past four years.
  • Iranians take nationalist pride in the technological accomplishments of their national nuclear program.  Furthermore, in a propaganda war between the U.S. government and their own government, the U.S. is probably gonna lose even if it possesses the better argument.  For all of Friedman's loose talk about the power of social media in a digitized world, he elides the point that one of the sentiments that social media is best at magnifying is nationalism
  • Friedman's "break all the rules" strategy is as transgressive as those dumb-ass Dr. Pepper commercials.  Worse, he's recommending a policy that would actually be counter-productive to any hope of reaching a deal with Iran.
Ed Webb

Is Turkey's Foreign Policy Really Sunni? - Al-Monitor: the Pulse of the Middle East - 0 views

  • it would be wrong to believe that bigoted Sunnis in Ankara embarked on an anti-Shiite mission in the Middle East that has left Turkey at odds with central governments in Syria, Iraq, and ultimately in Iran. To the contrary, Ankara has gone to great lengths to avoid the region's sectarianism, but its efforts have not been very fruitful.
  • it would be also wrong to assume that the reality of sectarianism in the Middle East isn't influencing feelings in Ankara and in Turkish society more broadly. The Alawite-Sunni conflict in Syria is creating bitterness between Turkey's Alevis and Sunnis, although violence seems highly improbable. On the other hand, Turkey is indeed beginning to be perceived as a Sunni power in the region.
Ed Webb

UN calls on Israel to open nuclear facilities - 0 views

  • The U.N. General Assembly overwhelmingly approved a resolution Monday calling on Israel to quickly open its nuclear program for inspection and backing a high-level conference to ban nuclear weapons from the Middle East which was just canceled.
  • 174-6 with 6 abstentions
  • Those voting "no" were Israel, the U.S., Canada, Marshall Islands, Micronesia and Palau
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  • not legally binding
  • Israel has long said there first must be a Mideast peace agreement before the establishment of a Mideast zone free of weapons of mass destruction. The region's Muslim nations argue that Israel's undeclared nuclear arsenal presents the greatest threat to peace in the region
  • While the United States voted against the resolution, it voted in favor of two paragraphs in it that were put to separate votes. Both support universal adherence to the NPT, and call on those countries that aren't parties to ratify it "at the earliest date." The only "no" votes on those paragraphs were Israel and India.
Ed Webb

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

  • 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
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