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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
Ed Webb

Arms Trade Treaty Stalled on Final Day - NYTimes.com - 0 views

  • In the final hours of negotiations, the United States, as well as Russia and China, all large weapons exporters, said more time was needed.
  • Fifty-one senators had urged the administration not to sign it in a letter sent Thursday. That letter sent an important signal of defeat because ratification requires 67 Senate votes. “As defenders of the right of Americans to keep and bear arms, we write to express our grave concern about the dangers posed by the United Nations’ arms trade treaty,” the senators said in the letter to President Obama and Secretary of State Hillary Rodham Clinton. “Our country’s sovereignty and the constitutional protection of these individual freedoms must not be infringed.”
  • Galen Carey, vice president of government relations at the National Association of Evangelicals, criticized gun lobby members for disparaging the treaty, saying, “Those spreading misinformation about alleged links between this treaty and the Second Amendment should stop doing so.”
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  • The treaty would for the first time establish common international standards for authorizing international arms transfers, including basic regulations and approval protocols that would improve transparency and accountability. A prime purpose, according to the draft, is to “prevent, combat and eradicate the illicit trade in conventional arms and their diversion to illegal and unauthorized end use.” It would also prohibit signatories from transferring conventional weapons that violate arms embargoes or enable those who commit genocide, crimes against humanity and war crimes.
Ed Webb

Cross-border criminals make $870 billion a year: U.N. - Yahoo! News - 0 views

  • Turnover of cross-border organized crime is about $870 billion a year, more than six times the total of official development aid, and stopping this "threat to peace" is one of the greatest global challenges, a U.N. agency said on Monday.
  • The total estimated figure of $870 billion is equivalent to 1.5 percent of the world's gross domestic product, it said, warning that crime groups can destabilize entire regions.
  • the first time the agency had compiled an estimate for transnational organized crime, using internal UNODC and external sources, so there were no comparative figures to show any trend.
Arabica Robusta

Theory Talks: Theory Talk #43 - Saskia Sassen - 0 views

  • doing this kind of research requires going beyond traditional disciplinary boundaries: you need to mix not just the empirical information about technologies, jurisdictions, transnational firms, the specific national laws of countries governing the diverse domains you might be covering –from economy to civil society. Beyond the empirical, which in a way is not so difficult—though it takes a lot of time—there is the challenge of developing conceptual framings that allow you to accommodate these fragments from diverse disciplines. In my experience one has to construct a kind of conceptual architecture that encompasses (as does a building!) many diverse elements. The critical challenge here is the organizing logic.
  • Can you help us to make methodological sense of contemporary global relations? Theory is critical: we need to grasp that which we cannot reduce to empirical measures. Empirical data to document globalization is important, but it is not enough.
  • In sum, conceiving of globalization must not occur only in terms of interdependence and global institutions, but also as inhabiting and reshaping the national from the inside, which opens up a vast agenda for research and politics. It means that research on globalization needs to include detailed studies and ethnographies of multiple national conditions and dynamics that are likely to be engaged by the global and often are the global, but function inside the national. This will take decoding: much of the global is still dressed in the clothes of the national. Deciphering the global requires delving deeper into subsumed phenomena and structures, rather than simply considering the self-evident.
Ed Webb

Living With Nuclear Outliers - www.nytimes.com - Readability - 0 views

  • The regimes in North Korea and Iran perceive integration into an international community whose dominant power is the United States as a threat to their survival. Integration might yield short-term regime-sustaining economic benefits, but it carries the risk of regime-terminating political contagion.
  • Pyongyang and Tehran seized on NATO’s 2011 intervention in Libya as evidence that Qaddafi had been duped by the West. Essentially, by taking down regimes in Iraq and Libya, Washington priced itself out of the security assurance market in Pyongyang and Tehran
  • The trouble is that “containment” as a strategy is increasingly denounced by hard-liners in the U.S. policy debate as tantamount to appeasement, reducing the administration’s political space
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  • the case for a military strike on Iran’s nuclear program rests on an assessment that the theocratic regime is undeterrable and apocalyptic. But that presumption runs contrary to National Intelligence Estimates, which have characterized the clerical regime’s decision-making as being “guided by a cost-benefit approach.” And U.S. intelligence analysts maintain that Iran has not yet decided to cross the threshold from a potential capability to an actual weapon
  • So long as Iran and North Korea see integration into the international community as a threat to their survival, and so long as they lack any long-term alternative for their economies, they will continue to use their nuclear programs and the ambiguities they generate as a proxy for relations with the world
  • Washington, for its part, does not have the option of changing their regimes or compelling their integration by force. And there is no telling how long their regimes will last
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