Skip to main content

Home/ Socialism and the End of the American Dream/ Group items tagged Blackstone

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Paul Merrell

Tomgram: Laura Gottesdiener, Security vs. Securities | TomDispatch - 0 views

www.tomdispatch.com/...ner%2C_security_vs._securities

banksters housing-market foreclosures equity-firms Blackstone Progress-Residential

shared by Paul Merrell on 23 Jun 14 - No Cached
  • I live in Washington, D.C.'s Capitol Hill neighborhood. I can more or less roll out of bed into the House of Representatives or the Senate; the majestic Library of Congress doubles as my local branch. (If you visit, spend a sunset on the steps of the library's Jefferson Building. Trust me.) You can't miss my place, three stories of brick painted Big Bird yellow. It's a charming little corner of the city. Each fall, the trees outside my window shake their leaves and carpet the street in gold. Nora Ephron, if she were alive, might've shot a scene for her latest movie in one of the lush green parks that bookend my block. The neighborhood wasn't always so nice. A few years back, during a reporting trip to China, I met an American consultant who had known Capitol Hill in a darker era. "I was driving up the street one time," he told me, "and walking in the opposite direction was this huge guy carrying an assault rifle. Broad daylight, no one even noticed. That's what kind of neighborhood it was." Nowadays, row houses around me sell for $1 million or more. I rent.
  • Washington's a fun place to live if you're young and employed. But as a recent Washington Post story pointed out, the nation's capital is slowly pricing out even its yuppies who, in their late-twenties and early-thirties, want to start families but can't afford it. "I hate to say it, but the facts show that the D.C. market is for people who are single and relatively affluent," a real estate researcher told the Post. The District's housing boom just won't stop; off go those new and expecting parents to the suburbs. And we're talking about the lucky ones. Elsewhere in the country, vulnerability in the housing market isn't a trend story; it's the norm. The Cedillo family, as Laura Gottesdiener writes today, went looking for their version of the American housing dream and thought they found it in Chandler, Arizona. They didn't know that the house they chose to rent rested on a shaky foundation -- not physically but financially. It had been one of thousands snapped up and rented out by massive investment firms making a killing in the wake of the housing collapse. As Gottesdiener -- who has put the new rental empires of private equity firms on the map for TomDispatch -- shows, the goal of such companies is to squeeze every dime of profit from their properties, from homes like the Cedillos', and that can lead to tragedy.
  • Drowning in Profits A Private Equity Firm, a Missing Pool Fence, and the Price of a Child’s Death By Laura Gottesdiener
  • ...4 more annotations...
  • The same month that the family rented the house at 1471 West Camino Court, Progress Residential purchased more homes in Maricopa Country than any other institutional buyer. Nationally, Blackstone, a private equity giant, has been the leading purchaser of single-family homes, spending upwards of $8 billion between 2012 and 2014 to purchase 43,000 homes in about a dozen cities. However, in May 2013, according to Michael Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University, Progress Residential bought nearly 200 houses, surpassing Blackstone's buying rate that month in the Phoenix area. The condition and code compliance of these houses varies and is rarely known at the time of the purchase. Mike Anderson, who works for a bidding service contracted by Progress Residential and other private equity giants to buy houses at auctions, was sometimes asked to go out and look at the homes. But with the staggering buying rate -- up to 15 houses a day at the peak -- he couldn’t keep up. “There’d be too many, you couldn’t go out and look at them,” he said. “It’s just a gamble. You never know what you’ve got into.”
  • Security is a slippery idea these days -- especially when it comes to homes and neighborhoods. Perhaps the most controversial development in America’s housing “recovery” is the role played by large private equity firms. In recent years, they have bought up more than 200,000 mostly foreclosed houses nationwide and turned them into rental empires. In the finance and real estate worlds, this development has won praise for helping to raise home values and creating a new financial product known as a “rental-backed security.” Many economists and housing advocates, however, have blasted this new model as a way for Wall Street to capitalize on an economic crisis by essentially pushing families out of their homes, then turning around and renting those houses back to them. Caught in the crosshairs are tens of thousands of families now living in these private equity-owned homes.
  • Global private equity firms have not been, historically, in the business of dealing with pool fences and the other hassles of maintaining single-family houses. But following the housing market collapse, the idea of buying a ton of these foreclosed properties suddenly made sense, at least to investors. Such private-equity purchases were to make money in three ways: buying cheap and waiting for the houses to gain value as the market bounced back; renting them out and collecting monthly rental payments; and promoting a financial product known as “rental-backed securities,” similar to the infamous mortgage-backed securities that triggered the housing meltdown of 2007-2008. Even though the buying of the private equity firms has finally slowed, economists (including those at the Federal Reserve) have expressed concern about the possibility that someday those rental-backed securities could even destabilize -- translation: crash -- the broader market.
  • ince Wall Street was overwhelmingly responsible for the original collapse of the housing market, many have characterized these new purchases as a land grab. In many ways, Progress CEO Donald Mullen is the poster-child for this argument. An investment banker who enjoyed a brief flurry of fame after losing a bidding war to Alec Baldwin at an art auction, he was the leader of a team at Goldman Sachs that orchestrated an infamous bet against the housing market. Known as “the big short,” it allowed that company to make “some serious money“ when the economy melted down, according to Mullen’s own emails. (They were released by the Senate Permanent Subcommittee on Investigations in 2010.) As Kevin Roose of New York magazine has written, “A guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the other end.”
Paul Merrell

CCC | GCHQ to face European Court over mass surveillance - 0 views

www.ccc.de/gchq

surveillance state GCHQ human rights litigation ECHR

shared by Paul Merrell on 11 Jan 14 - No Cached
  • Three of Britain’s most prominent campaign groups have today announced the launch of a legal challenge against the actions of GCHQ, alleging it has illegally intruded on the privacy of millions of British and European citizens. Big Brother Watch, the Open Rights Group and English PEN, together with German internet activist Constanze Kurz, have filed papers at the European Court of Human Rights bringing an action against the UK Government.

 They allege that by collecting vast amounts of data leaving or entering the UK, including the content of emails and social media messages, the UK’s spy agency has acted illegally. When details recently emerged in the media about the Prism and Tempora programmes, codenames for previously secret online surveillance operations, it was revealed that GCHQ has the capacity to collect more than 21 petabytes of data a day – equivalent to sending all the information in all the books in the British Library 192 times every 24 hours. The disclosures have raised serious parliamentary concerns both in Britain and at the EU level. Deighton Pierce Glynn solicitors represent the applicants, instructing Helen Mountfield QC of Matrix Chambers and Tom Hickman and Ravi Mehta of Blackstone Chambers. The legal action will be funded through donations at www.privacynotprism.org.uk
  • Paul Merrell on 11 Jan 14
     
    One I missed from October 3, 2013. The case was later filed with the European Court of Human Rights as "Joint Application Under Article 34 of Big Brother Watch, Open Rights Group, English Pen Dr Constanze Kurz (Applicants) - v - United Kingdom (Respondent)." There is no appeal from decisions of this Court.
Paul Merrell

Voters Say "Yes" to the Republican Who Said "No" to Wall Street | The Nation - 0 views

www.thenation.com/...blican-who-said-no-wall-street

Auction-2014 Libertarians Jones banksters neocons

shared by Paul Merrell on 07 May 14 - No Cached
  • House Speaker John Boehner and his cronies removed North Carolina Congressman Walter Jones from the House Financial Services Committee in late 2012, as part of a purge that removed Republicans who were not all in for Wall Street -- and for Boehner's brand of "service" to the industries that are supposed to be regulated by Congress -- from the one panel with the power to hold bankers and brokers to account. But Jones, who had opposed bank bailouts and favored Wall Street regulation, did not go quietly. He spoke up about the purge and made little secret of his sense that -- though he had split with Boehner on a number of issues -- his biggest "sin" in the eyes of the party leadership was his refusal to bow to the demands of big campaign donors. “This whole place is all about money. Money is more important than policy,” complained Jones, who has in recent years co-sponsored most major pieces of campaign-finance reform legislation in the House -- including a call for a constitutional amendment designed to restore the ability of federal, state and local officials to regulate campaign spending.
  • The congressman's bluntness did not go over well with the masters of the universe on Wall Street. So, this spring, they set out to purge Walter Jones from Congress altogether. They found a consummate DC insider with close ties to the financial-services industry, Taylor Griffin, and filled the challenger's campaign treasury with PAC checks from J.P. Morgan, Wells Fargo and Bank of America, as well as political powerbrokers like former Republican National Committee chairman Haley Barbour and Wayne Berman of the Blackstone Group. It did not stop there. Jones' independence extended far beyond debates over Wall Street bailouts and regulation. The Republican is a social and economic conservative -- make that a social and economic very conservative -- but he has repeatedly broken with the party establishment on issues of war and peace, privacy rights, trade policy and budgets. He even voted against proposals by the darling of Wall Street and the party establishment, Congressman Paul Ryan
  • Bush administration aides and apologists rushed in with public statements and "independent" expenditures to attack Jones for his opposition to wars in Iraq and Afghanistan, and for his refusal to go along with moves that might lead to wars with Iran and other countries. Former Bush White House spokesman Ari Fleischer gave his enthusiastic backing to Griffin, as did former national security adviser Juan Zarate. Sarah Palin, one of the party's most consistent militarists, came in big for Griffin, who hailed her as an "old friend." A neo-conservative group, the Emergency Committee For Israel, spent at least $250,000 on ads that claimed Jones "preaches American decline." What Jones actually said was that, “Lyndon Johnson’s probably rotting in hell right now because of the Vietnam War, and he probably needs to move over for Dick Cheney.” At the same time, the wealthy champions of Ryan's crony-capitalist approach to budgeting were in with big money for TV ads and direct mail from the "Ending Spending Action Fund" -- a super PAC backed by billionaire businessman Joe Ricketts. By a lot of DC measures, Jones should have been doomed.
  • ...1 more annotation...
  • But the ten-term congressman bet that the voters of eastern North Carolina would stick with him. “I’m not going to sacrifice my integrity for anyone or any party,” he said. “It’s the price you pay. I didn’t come (to Washington) to be a puppet for anyone. And I think the public back in my district, which is the most important, has seen I’m willing to do what I think is right.” It was the right bet. On Tuesday, Republican primary voters in eastern North Carolina decided to purge the Wall Street donors and the special interests. The reelected Walter Jones by a solid 51-45 margin.
Gary Edwards

The Daily Bell - Gerald Celente on Multinationalism, Breaking the Chains and Individual... - 0 views

www.thedailybell.com/...ins-and-Individual-Renaissance

gerald-celente Globalist-Elites

shared by Gary Edwards on 04 Nov 13 - No Cached
  • Gerald Celente: As I said, they're in a trap and it's a tapering trap, the quantitative easing trap. They can't keep printing more money because it's going to devalue the currency. And by the way, this is complicated, because it's not only the United States that's doing it; most of the central banks are doing it. China, the Europeans – they're all pumping money into their systems to keep them afloat. They're all in a trap. A time comes when you just can't keep doing it anymore. You can only take heroin so much before it kills you. This is monetary methadone and it's not going to cure the problem so they're going to have to stop. When it stops, that's when we go back into a recession and/or a depression.
  • Is it a depression? Is it a depression if you live in Greece or Spain or Portugal? Is it a depression if you're among the over 12% unemployed in Italy? When you look at John Williams's ShadowStats, in the US we're looking at about 22% unemployment. So yes, it's a depression for a lot of people. And then again, median household income in the US, accounting for inflation, is 10% below 1999 levels. That's a fact. So if you're earning 10 percent less for your family than you were in 1999 and the costs have skyrocketed since then, particularly in healthcare, food, rent, property, gas and other costs, do you think you're living in a depression? Daily Bell: Is central banking an art, a science or just a fraud?
  • Gerald Celente: Neither. It's a criminal operation. Throughout the 1800s, one of the major issues of every presidential election was whether or not to have a central bank. They fought it successfully not to have one until 1913. These are private banks that are running our country and many others. This goes back to the scriptures; it's Christ chasing the moneychangers out of the temple. The moneychangers have just got new names – Deutsche Bank, Societe Generale, Goldman Sachs, JPMorgan Chase, and, of course, JPMorgan Chase got that name because you're going to have to chase them to get your money because they just put a limit on how much you can withdraw or deposit each month in certain accounts, with a limit of $50,000.
  • ...21 more annotations...
  • Daily Bell: It seems like people don't believe in central banking anymore so why does it continue? What holds it up in a so-called democracy where people have a vote? Gerald Celente: Most people don't even know what a central bank is and they still believe the lie that the Federal Reserve is a quasi-government institution when it's not. It's a totally private bank. Most people don't even know that. So most people are uninformed and like in all countries, they follow their leaders. Very few people rebel. There was an incident that happened in late October in the States. Hillary Clinton was speaking in Buffalo, delivering her model for what is required to solve complex problems. There was a heckler in the crowd who she admonished by saying, "... which doesn't include yelling. It includes sitting down and talking." What patronizing bullshit. You know what happened? The audience of 6,500 stood up and gave her a standing ovation that extended on and on. So it's the people. The people can blame the politicians all they want, but as I see it, it's the people's responsibility for the state of their nation.
  • Daily Bell: What's the employment picture like going forward in the US?
  • Gerald Celente: Lower paying jobs, less benefits, more temporary jobs and I think the question at the end is rather than going forward in the US it should be what's going forward in Slavelandia, because that's what it's become. You get out of college and you're an indentured servant. For the rest of your life you have to pay off your debt for your degree in worthlessness, for the most part. There are degrees that are worth something but not a lot of them. Where are you going to work? Name the company – Macy's? Starbucks? You can become a barista. Are they going to start teaching Shipping & Handling 101 in college? What are they going to do? Who are you going to work for? What are you going to do – stock shelves? This is better than slavery because when they had the plantation you had to take care of the slaves. Now you can just use them up and send them home. It's kind of like Bangladesh right here in the good 'ol USA.
  • Daily Bell: How about the rest of the world? Give us a global summary.
  • Gerald Celente: The global summary is this: Everybody can see what happened when the Federal Reserve talked about tapering several months ago. All of a sudden you saw the emerging markets start to crash; they dropped about 11% in a year before the Fed reversed its policy because all the hot, low-interest rate money that was leaving the US was flowing into the emerging markets, where you could borrow the money cheaply. So when they started to talk about tapering the hot money started flowing out of these countries, such as India, Brazil. They were really suffering from it and so were their stock markets. So without the cheap money flowing from the central banks, the entire global economy goes on stall and then it turns negative. You can see what's going on in China now; they're facing a banking crisis. Real estate prices in cities like Shanghai and Beijing have gone up over 20% in a year and no matter how the government tries to deflate it, the housing bubble keeps growing. The banks also have a lot of bad loans they're carrying. Now the Chinese government is trying to restrain that free-flow of cheap money, and what happens to their stock market when they do? It dives and the contagion spreads to other Asian equity markets. They all start dropping. It's all tied to cheap money and when the cheap money spigot begins to tighten up the global economy goes down. As I've made very clear, when the interest rates go up the economies go down – it's as simple as that. They've run out of this game. Compare this with the Great Depression, when it began essentially in 1930. This recession begin in 2008. It's now 2013 – we're only in 1935.
  • Daily Bell: China and the BRICS seem to be making noises about setting up their own monetary infrastructure without the dollar. Will that happen?
  • Gerald Celente: Yes, they are making noise, but reality is another issue, and the currency issue is complicated. The dollar goes down but where are you going to go, the euro? We were talking briefly about what's going on in Europe. There's financial market propaganda boasting that the worst of the eurozone crisis is over. They're bragging that The GDP of Spain was just reported to have gone up 0.1% and they made a big deal out of it. "The recession's over" is the B.S. message. No, the recession is not over! They're cooking the numbers to make a rotten situation look less rotten. In countries like Greece and Spain, youth unemployment is running above 50% and overall unemployment around 30%. The recession continues unabated, and there's absolutely no way out of this and they can't print their way out. Portugal, Italy, Greece, Spain, Ireland are doing terrible – what would anyone substitute euros for dollars? And what other currency choices are there, the yuan? As I mentioned, China has plenty of its own problems. They've been dumping a lot of cash into that society to keep it going. You know what China's greatest fear is? It's not the Spratly Islands or the South and China Sea territorial problems that are going on between them, the Philippines, Vietnam or the Japanese. China's greatest fear is its people. They've got 1.2 billion of them and if they're hungry or not happy there's going to be a lot of problems.
  • Again, what do you substitute the dollar for, Brazil's real or the Indian rupee? Remember, we saw what happened when the hot money started leaving the emerging market countries. The South African rand is also under pressure. The BRIC nations can speak as much as they want and they may have the greatest intention to create another reserve currency, but the fact is their economies are not robust or independent enough to create one at this time. As I said, talk is one thing, facts are another and although the world is less dependent on the dollar it is still by far the major reserve currency of the world and I don't see that rapidly changing unless there's a catastrophe that would cause it to happen. However, over the years, I do expect a new reserve model to develop.
  • Daily Bell: Let's talk about military action, particularly in Syria where Al Qaeda types have been fighting on the side of the US and NATO. Why does the US want to destabilize Syria and what country will be next – Iran? Russia?
  • Gerald Celente: We wrote about this in the Trends Journal going back to 2011. After Libya fell, Syria was the only port that the Chinese and the Russians had in the Mediterranean – the Port of Tartus. And also, Syria's only real ally in that area is Iran and, of course, Hezbollah in Lebanon. So with Syria out of the way there's nothing in the Middle East other than Iran to stop the continued spread of US influence and control in that area. It's really more about that than anything we see – again, having more control over that area for the US to do as it wants, with Iran really being the main target.
  • When President Obama backed off his red line threat and didn't attack Syria that was a tipping point. And, as important, the vast majority of Americans opposed the attack plan. That was a significant statement. The country said it was tired of war – and so are a lot of other nations.
  • Gerald Celente: Again, talk about morality and the recent Amnesty International report that said the United States was breaking international law in its use of drones to kill people that were convicted of nothing in addition to innocent people. How much more immoral could you get?
  • I can tell you how much immoral. How about starting wars in Afghanistan and Iraq – in Iraq with the proof that a war was started that killed at least a half a million people that was started under fake reasons; lies that Saddam Hussein had weapons of mass destruction and ties to al Qaeda. An Afghan war that's the longest war in American history, the war in Libya that they called a time-limed, scope-limited kinetic action that's destroyed the entire nation. You want to talk about immorality? How about the "too big to fail"? The government mandated immoral act of stealing money from the American people to give it to the banks, financiers and favored corporations? They say the fish rots from the head down and that's it; the fish has rotted in America for a long time. It didn't start with Obama. It goes back to Bush, Clinton, and keeps going back. Society gets the message from the top and, as I see it, they're simply following their leaders. For example, if their leader can start wars, rob people, take their money, why shouldn't I? Why should I operate on a moral level when immorality is condoned at the top?
  • Most recently, the United States government, in virtually every fashion of behavior, has been fascist. I don't say that by throwing the word out loosely. It's called the merger of corporate state and powers. It goes back to "too big to fail." Under capitalism there's no such thing. You're not too big to fail; you fail. Big, small, medium, you fail – it's capitalism.
  • Not anymore. You have your money taken from you by government order and it's transferred to the people who are the most favored by those in power. That's the only reason why the stock market keeps going up and why the multinationals are doing so well. That's where the $85 billion a month that the Federal Reserve is using in their quantitative easing is going. Then when you look at the other levels of immorality, as I mentioned, why shouldn't people feel as though they can do anything the government is doing? That's why it just keeps getting worse and worse. It's reflected in the music, the politics, every element of culture – both pop culture and political culture.
  • Under the dictates of the eurozone and globalization, the love of one's culture and pride of nation is denounced as "populism."
  • Daily Bell: Let's talk hard money. Can you give us an update on the price action of gold and silver? How about equity? Where is the stock market headed? We think the big boys are trying to rev it up and go for one last killing. Your thoughts?
  • Gerald Celente: The stock market will continue to rise as long as interest rates stay low. That's the best estimate you could give. They keep all of this quantitative easing that, for example, benefits the big private equity firms. Look what's going on in the United States with Blackstone Group. They own 40,000 homes. Where are they getting the money? Deutsche Bank is loaning them tons of money because they're getting money with overnight rates near zero, and they in turn loan it to the "bigs" really cheaply so it is just another example of what's keeping the whole stock market scam going.
  • As long as the money stays cheap the stock market keeps going up. As the money stays cheap gold and silver go up, and you're seeing gold making a bit of a rebound lately because of, again going back to the employment numbers in the States – there is no recovery, the jobs stink, they're not creating enough jobs. The tapering keeps going on, which is a devaluation of the currency, and quantitative easing continues. As long as money stays cheap gold goes up. Now, gold may go down when quantitative easing and tapering slow down. However, that's only going to be temporary because when that happens the bond market's going to explode, when interest rates go up, there's going to be another financial crisis. My best analysis at this time is the second quarter of 2014. The 'experts' are saying the stock market is booming. It has gone from a 14,000 high in 2007 to mid-15,000 now. Accounting for inflation, the stock market has to be about 15,750 just to be back at the 2007 level.
  • Daily Bell: There are other trends, of course, ones you often mention. You spoke to us last time about the New Millennium Renaissance.
  • Gerald Celente: Back to the renaissance... To me, that's the only thing that's going to change the future. We need a cultural, artistic and moral redevelopment, a restoration. Every issue that we've been talking about so far is based on human behavior and the human spirit – morality or immorality. Until morality is restored and the human spirit rises, nothing's going to change. As I was mentioning before, the fish rots from the head down. If you see the people at the head acting immorally, and from the head all the way down, why shouldn't you or I act immorally? What license do they have to steal that we don't? What license do they have to kill that we shouldn't?
Paul Merrell

Profiting from Your Thirst as Global Elite Rush to Control Water Worldwide :: The Marke... - 0 views

www.marketoracle.co.uk/article38167.html

banksters water water-rush privatization

shared by Paul Merrell on 23 May 14 - No Cached
  • A disturbing trend in the water sector is accelerating worldwide. The new “water barons” --- the Wall Street banks and elitist multibillionaires --- are buying up water all over the world at unprecedented pace. Familiar mega-banks and investing powerhouses such as Goldman Sachs, JP Morgan Chase, Citigroup, UBS, Deutsche Bank, Credit Suisse, Macquarie Bank, Barclays Bank, the Blackstone Group, Allianz, and HSBC Bank, among others, are consolidating their control over water. Wealthy tycoons such as T. Boone Pickens, former President George H.W. Bush and his family, Hong Kong’s Li Ka-shing, Philippines’ Manuel V. Pangilinan and other Filipino billionaires, and others are also buying thousands of acres of land with aquifers, lakes, water rights, water utilities, and shares in water engineering and technology companies all over the world. The second disturbing trend is that while the new water barons are buying up water all over the world, governments are moving fast to limit citizens’ ability to become water self-sufficient (as evidenced by the well-publicized Gary Harrington’s case in Oregon, in which the state criminalized the collection of rainwater in three ponds located on his private land, by convicting him on nine counts and sentencing him for 30 days in jail). Let’s put this criminalization in perspective:
  • Billionaire T. Boone Pickens owned more water rights than any other individuals in America, with rights over enough of the Ogallala Aquifer to drain approximately 200,000 acre-feet (or 65 billion gallons of water) a year. But ordinary citizen Gary Harrington cannot collect rainwater runoff on 170 acres of his private land. It’s a strange New World Order in which multibillionaires and elitist banks can own aquifers and lakes, but ordinary citizens cannot even collect rainwater and snow runoff in their own backyards and private lands.
  • In 2008, Goldman Sachs called water “the petroleum for the next century” and those investors who know how to play the infrastructure boom will reap huge rewards, during its annual “Top Five Risks” conference. Water is a U.S.$425 billion industry, and a calamitous water shortage could be a more serious threat to humanity in the 21st century than food and energy shortages, according to Goldman Sachs’s conference panel. Goldman Sachs has convened numerous conferences and also published lengthy, insightful analyses of water and other critical sectors (food, energy). Goldman Sachs is positioning itself to gobble up water utilities, water engineering companies, and water resources worldwide. Since 2006, Goldman Sachs has become one of the largest infrastructure investment fund managers and has amassed a $10 billion capital for infrastructure, including water.
  • ...7 more annotations...
  • Citigroup’s top economist Willem Buitler said in 2011 that the water market will soon be hotter the oil market (for example, see this and this): “Water as an asset class will, in my view, become eventually the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals.” In its recent 2012 Water Investment Conference, Citigroup has identified top 10 trends in the water sector, as follows:
  • Specifically, a lucrative opportunity in water is in hydraulic fracturing (or fracking), as it generates massive demand for water and water services. Each oil well developed requires 3 to 5 million gallons of water, and 80% of this water cannot be reused because it’s three to 10 times saltier than seawater. Citigroup recommends water-rights owners sell water to fracking companies instead of to farmers because water for fracking can be sold for as much as $3,000 per acre-foot instead of only $50 per acre/foot to farmers.
  • One of the world’s largest banks, JPMorgan Chase has aggressively pursued water and infrastructure worldwide. In October 2007, it beat out rivals Morgan Stanley and Goldman Sachs to buy U.K.’s water utility Southern Water with partners Swiss-based UBS and Australia’s Challenger Infrastructure Fund. This banking empire is controlled by the Rockefeller family; the family patriarch David Rockefeller is a member of the elite and secretive Bilderberg Group, Council on Foreign Relations, and Trilateral Commission.
  • Barclays PLC is a U.K.-based major global financial services provider operating in all over the world with roots in London since 1690; it operates through its subsidiary Barclays Bank PLC and its investment bank called Barclays Capital. Barclays Bank’s unit Barclays Global Investors manages an exchange-traded fund (ETF) called iShares S&P Global Water, which is listed on the London Stock Exchanges and can be purchased like any ordinary share through a broker. Touting the iShares S&P Global Water as offering “a broad based exposure to shares of the world’s largest water companies, including water utilities and water equipment stocks” of water companies around the world, this fund as of March 31, 2007 was valued at U.S.$33.8 million.
  • Deutsche Bank is one of the major players in the water sector worldwide. Its Deutsche Bank Advisors have identified water as a part of the climate investment strategies. In its presentation, “Global Warming: Implications for Investors,” they have identified the four following major areas for water investment: § Distribution and management: (1) Supply and recycling, (2) water distribution and sewage, (3) water management and engineering. § Water purification: (1) Sewage purification, (2) disinfection, (3) desalination, (4) monitoring. § Water efficiency (demand): (1) Home installation, (2) gray-water recycling, (3) water meters. § Water and nutrition: (1) Irrigation, (2) bottled water.
  • Moreover, Deutsche Bank has channeled €6 billion (U.S.$8.55 billion) into climate change funds, which will target companies with products that cut greenhouse gases or help people adapt to a warmer world, in sectors from agriculture to power and construction (Reuters, October 18, 2007). In addition to SCM, Deutsche Bank also has the RREEF Infrastructure, part of RREEF Alternative Investments, headquartered in New York with main hubs in Sydney, Singapore, and London. RREEF Infrastructure has more than €6.7 billion in assets under management. One of its main targets is utilities, including electricity networks, water-treatment or distribution operations, and natural-gas networks. In October 2007, RREEF partnered with Goldman Sachs, GE, Prudential, and Babcok & Brown Ltd. to bid unsuccessfully for U.K.’s water utility Southern Water. § Crediting the boom in European infrastructure investment, the RREEF fund by August 2007 had raised €2 billion (U.S.$2.8 billion); Europe’s infrastructure market is valued at between U.S.$4 trillion to U.S.$6 trillion (DowJones Financial News Online, August 7, 2007). § Bulgaria --- Deutsche Bank Bulgaria is planning to participate in large infrastructure projects, including public-private partnership projects in water and sewage worth up to €1 billion (Sofia Echo Media, February 26, 2008). § Middle East --- Along with Ithmaar Bank B.S.C. (an private-equity investment bank in Bahrain), Deutsche Bank co-managed a U.S.$2 billion Shari'a-compliant Infrastructure and Growth Capital Fund and plans to target U.S.$630 billion in regional infrastructure.
  • In my 2008 article, I overlooked the astonishingly large land purchases (298,840 acres, to be exact) by the Bush family in 2005 and 2006. In 2006, while on a trip to Paraguay for the United Nation’s children’s group UNICEF, Jenna Bush (daughter of former President George W. Bush and granddaughter of former President George H.W. Bush) reportedly bought 98,840 acres of land in Chaco, Paraguay, near the Triple Frontier (Bolivia, Brazil, and Paraguay). This land is said to be near the 200,000 acres purchased by her grandfather, George H.W. Bush, in 2005. The lands purchased by the Bush family sit over not only South America’s largest aquifer --- but the world’s as well --- Acuifero Guaraní, which runs beneath Argentina, Brazil, Paraguay, and Uruguay. This aquifer is larger than Texas and California combined. Online political magazine Counterpunch quoted Argentinean pacifist Adolfo Perez Esquivel, the winner of 1981 Nobel Peace Prize, who “warned that the real war will be fought not for oil, but for water, and recalled that Acuifero Guaraní is one of the largest underground water reserves in South America….”
  • Paul Merrell on 23 May 14
     
     Like the land rush for Arctic lands soon to be bared of ice by global warming, banksters are also moving to capitalize on looming water shortages, aided by IMF privatization loan conditions the the dwindling of potable water supplies globally via pollution, deforestation, and aquifer depletion. All trace to the common problem over human overpopulation of the planet.  
1 - 5 of 5
Showing 20▼ items per page