Category Archives: Commodities

The Dangers of a Chinese Financial Crisis

Yves here. Even the China bulls are coming to see the financial system as a risk factor.

Gas and Stock Prices: Tied Together By Speculators?

If you are old enough to remember the 1970s, the idea that gasoline and stock prices would be correlated seems bizarre.

Philip Pilkington: Hyperinflation! The Libertarian Fantasy That Never Occurs

By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil

While it is probably true that no one has ever gone broke underestimating the intelligence of the public, it is also true that many who try to turn a profit from stupidity often become the victims of their own nonsense. As we have discussed previously, the fear industry that has grown up since 2008 – mainly centred on the gold market – is a manifestation of this dynamic.

China Decides that South China Sea Oil is a National Asset

By John Daly, a non-resident scholar at the Central Asia-Caucasus Institute at Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies and chief analyst at OilPrice. Cross posted from OilPrice

While the Western press is fixated on both recent North Korean nuclear tests and Beijing’s recent skirmishes with Japan over the Senkaku (“Diaoyu” in Chinese) islands, other maritime issues have developed further south, where China is involved in sovereignty disputes over the Spratly islands’ 750 islands, islets, atolls, cays and outcroppings with the Philippines, Taiwan, Vietnam, Malaysia and Brunei.

Banks on the Counter-Attack in the Food and Finance Debate

By Jennifer Clapp, Professor in the Environment and Resource Studies Department and CIGI Chair in Global Environmental Governance, Balsillie School of International Affairs, University of Waterloo, Canada. Cross posted from Triple Crisis

NGOs have stepped up their critique of large investment banks’ involvement in agricultural commodity derivatives markets in recent months. Now, it appears that the banks are starting to fight back.

Philip Pilkington: The Fear Industry – Austrian School Propaganda and the Gold Market

By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil

When you survey the websites and the pundits of Austrian economics on the internet you tend to get a niggling feeling that they’re trying to sell you something.

Dan Dicker: Aubrey McClendon and the Destruction of the Natural Gas Market

This post on the near term outlook for natural gas may give environmentalists cheer.

Iran on the Offensive

Until now, the Arab oil producing countries of the Persian Gulf, also called the Arabian Gulf, or to those seeking political neutrality, simply the Gulf, looked at their Persian neighbour with suspicion and trepidation. The fear came from mainly the military superiority that Iran wields over the Gulf, Persian or Arabian, depending on how you prefer to call it.

The Persistent Power of Finance, Um, JP Morgan

By C.P. Chandrasekhar, Professor of Economics, School of Social Sciences, Jawaharlal Nehru University, New Delhi. Cross posted from Triple Crisis

In a move that went contrary to what is expected of regulators, the Securities and Exchange Commission of the US approved in mid-December a controversial JP Morgan-created exchange-traded fund (ETF) backed by physical supplies of copper.

Eric Zuesse: Obama Administration Lies, Then Covers Up, to Minimize BP Liabilities for Deepwater Horizon Disaster

By Eric Zuesse, an investigative historian and the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

The National Oceanic & Atmospheric Administration (NOAA) of the Federal Government has refused to investigate why it vastly underestimated the amount of oil spilled in BP’s Deepwater Horizon huge blowout in the Gulf of Mexico, and thus refused to understand why the actual liability of BP will never be able to be estimated accurately, for calculating BP’s penalties and compensation-payments.

SEC Gives JP Morgan and Other Big Banks License to Manipulate Commodities

An SEC action that appears likely to do considerable harm to companies and individuals in the US and abroad appears to have gone completely unnoticed, save for an important piece in The New Republic by Linda Khan.

Conservation Not Technology will be our Savior – Chris Martenson (Part 2)

In part 2 of our interview with Chris Martenson, economist and editor of the popular financial website Peak Prosperity, Chris talks about:

• How tight oil is being oversold
• An idea for solving the storage and bBattery problem
• How price, not technology, has unlocked boom reserves
• Why it’s about conservation now, not new technology
• Why we should be concerned about another financial meltdown
• Future opportunities for investors
• Why exporting natural gas is a terrible idea
• Why Governments should help renewable Energy innovation
• Why net energy returns are the MOST important thing

Don’t Fall for the Shale Boom Hype – Chris Martenson Interview

By James Stafford, editor of Oil Price of Oil Price. Cross posted from Oil Price

In part 1 of our 2 part interview Chris discusses:

• Why we shouldn’t talk about energy independence
• What the media is failing to report about the “massive” Shale discoveries
• How oil analysts are getting the economics wrong
• Why we could see $200 a barrel Oil in the Near Future
• The relationship between energy and the economy
• Why peak oil is not a defunct theory
• Why electric vehicles are the future
• Why natural gas should be a bridge to a new energy future
• Why Washington just doesn’t get it

Satyajit Das: L’Age d’Or, Part 2 – Golden Memories

The depth of the financial crisis, concern about the security of other assets including once risk-free governments bonds and a fragile banking system prompted a flight to gold as a safe haven. The monetary policies of governments and central banks, emphasising low interest rates and printing money to restart the global economy, also underpinned the gold price.

For investors, investing in gold is not without problems.

Satyajit Das: L’Age d’Or, Part 1 – “A Barbarous Relic”

By Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk (2011)

In Germany, gold is now available from vending machines in airports and railway stations – Gold to Go. Shoppers can buy a 1 gram wafer of gold or a larger 10g bar. Seeking safety for their savings, individuals have purchased 150 tonnes of gold, mainly in the form of coins. Investors poured money into special funds (known as exchange traded funds (“ETFs”)) which pool investor monies to buy over 1,000 tones of gold.