The World For Sale
Javier Blas
Summary
The history of commodity traders, some of the most interesting and private humans on the planet
Rating: 4/5
Notes
Underpinning almost all of our consumption is trade of natural resources and underpinning that trade are commodity traders
Glencore is the largest metals trader, top 3 oil trader and world’s largest wheat trader and public
Leading Oil trader is Vitol, who are closely tied to the British political establishment
In agriculture, Cargill is king
4 big developments shapred the global economy for traders: oil opening up in the Middle east, collapse of the Soviet Union in ‘91, rise of China and financialization of the economy in the 80s
Bribery was rampant in the industry
The focus of personal connection became an obsession of the industry, even with the email and Zoom world
The culture of all trading houses is that of hard work, loyalty and partnership
After OPEC’s creation in the 60s and 70s, commodity traders became essential to move their product which also made them more powerful
Marc Rich became the most important oil trader in the world
The Suez canal is massive for global oil to get oil from the Middle East to US/EU
After the Yom Kippur War in ‘75, oil became the most important commodity for the world’s health
The centre of the oil market shifted from boardrooms in London and NYC to Rotterdam
Decades of global economic growth spurred massive investments in commodity production around the world
Resource multinationalism swept the world in the 70s and 80s
Marc Rich and Co saved Jamaica in the 80s by bailing them out in exchange for access to bauxite for aluminum
The oil traders helped prolong the apartheid by supplying South Africa with oil even after sanctions were placed on them
The Gulf Ear was another major oil shock in 90/91 where futures/options led the way
The soviet collapse was a seismic event for commodity traders as they were one of the largest producers of oil, metals and grain
The commodity traders were connecting the old communists with banks in London and NYC
China’s rise was a massive boom to the commodity traders in the 2000s
The amount of commodities a country consumes is based on the number of people in their country and income, usually after a per capitre increase of $4000
Glencore is the world’s largest shipper of coal in 2000 owning a lot of plants
There was a massive commodity supercycle in the 2000s, primarily due to China
2 big oil trading companies of the 2000s were Meruria and Guvnor
Glencore owns a lot of African natural resources through mines
Congo is very rich in resources like uranium, copper and cobalt
By 2008, all the best information was in the hands of the commodity traders
From their comfortable offices, commodity traders are shaping geopolitics and history around the world
Trading companies became so big they had the power to finance nations. They were no longer just traders of commodities but merchants of power
The case against BNP Paribas and Trifigura with a 9B fine showed the US government’s willingness to punish those who are against their foreign policy interests and its main weapon is the US dollar
Challenges to the business include less preferred access to info, deglobalization and climate change
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How the World Works
Noam Chomsky
Summary
A combination of books Chomsky wrote in the 80s and 90s about America and it's role in the world. Fascinating read and insight into one of the great thinkers of the 21st century
Rating: 5/5
Notes
The US invaded Greece in 1947 and supported a horrendous war which led to 160k Greek deaths. This was the model for Vietnam and allowed American business to gain and thrive
US policies in the 3rd world consistently opposed democracies if they couldn’t be controlled as real democracies believe government should respond to the needs of their own population rather than those of US investors
US-run contra forces in the 3rd world isn’t ordering killing - it’s brutal sadistic torture (Nicaragua, El Salvador, Guatemala)
From the Bolshevik revolution in 1917 till the collapse of the communist governments in eastern europe in the 80s, it was possible to justify every US attack as defense against the Soviets
If you want a global system that’s subordinated to the needs of US investors, you can’t let pieces of it wander off. It’s clearly stated in the documents of record
The US wants ‘stability’ meaning security for the upper classes and large foreign businesses
Solid case for impeaching every American president since World War 2 either outright as war criminals or involved in serious war crimes
El Salvador and Nicaragua were not covered by the US media in the 70s when US-supported brutal torture and murder were taking place
In the early 80s, America’s friends slaughtered 10s of thousands of Guatemalans with countless others tortured and raped
After Vietnam, the major US policy goal has been to maximize repression and suffering of countries demonstrated by their violence - blocked other countries from seeking aid
The US regularly carries out or supports aggression
For most of the 20th century, the US was the dominant economic power and used economic warfare as a weapon ranging from illegal embargoes to enforcement of weak IMF rules with their military becoming pre-eminent
The US tries to avoid negotiations with countries as the US fears it will lose and other countries will be better off
When a state has huge debts, it must divert the population from what’s happening and they do this by inspiring fear of our enemies (Russia in Europe)
The real enemy of the US has always been ‘the poor who seek to plunder the rich’. In America, it’s the opposite and has been for generations
‘The war on drugs’ was a manufactured media blitz by the US leadership to distract the population, increase repression in inner cities and build support for attack on civil liberties
The US government blocks international effort to seek peace (Russia and Ukraine)
Major media are large companies owned and interlinked with even larger conglomerates. The market is the advertisers and the product is audiences
The power in the US lies in the hands of people who determine investment decisions as they determine production, distribution and staff the government. They want a passive, quiescent population
The struggle of freedom is never over and requires active and sustained efforts
One important consequence of globalization is it extends the third world model to industrial nations where the average person has their jobs shipped away while the rich and elite continue to amass massive amounts of wealth
We’ve moved to an international state with the IMF, World Bank, G7 & EU, WEF where the general population doesn’t know what’s happening and it doesn’t know it doesn’t know
If the borrowing the US has done was used for constructive purposes like investment or infrastructure, the US would be better off, but it was used to enrich the rich - for consumption, financial manipulation and speculation which are all harmful
The class warfare of the last few decades has successfully weakened popular organizations leaving people to feel isolated
The US is so deeply in debt to the international financial community because of debt that they have a lock on US policy
Many of the large number of security council resolutions vetoed by the US have to do with Israeli aggression or atrocities
Invaders typically use local collaborators to run things for them by playing upon existing rivalries to get onne group to work for them against another
European wars were wars of extermination. If we were to be honest about history, we would simply describe it as barbarian invasion
There has always been racism but it developed as a leading principle of thought in the context of colonialism.
A standard technique of belief formation goes along with oppression
In the US, you’re not allowed to talk about the class differences, which is the real issue
When the US establishment talks about jobs, it means profits for its corporations
The elite are masters and they follow what Adam Smith said about ‘the vile maxim’ - all for ourselves and nothing for anyone else
People who aren’t owners and investors have nothing much to say in the US
Jefferson warned against banking institutions and corporations and said if they grow, aristocrats would’ve won and the revolution would’ve been lost
The ‘Free market’ is for the poor. We have a dual system - protection for the rich and market discipline for everyone else
There’s been a considerable increase in inequality and has the American society moving towards a third world model, thereby seeing increased crime and signs of social disintegration
A huge area of the media is dedicated to diverting people and making them more stupid and passive
There’s nothing individualistic about corporations who are totalitarian in nature
Free trade agreements result in reduced wages for local employees while predominantly benefiting the rich consumer while also destroying unions
Operation Paper Clip imported large number of known Nazi criminals
The American army’s counter-insurgency literature begins with an analysis of the German experience in Europe written with the co-operation of Naxi officials (instruments of statecraft - book)
US involvement in Chile with the coup in 1973 to reduce social democracy
The threat of a good empire is what the US worried about with reforms on uncontrolled capitalism
The US killed a few million people and destoryed 3 countries during the Vietnam war
A huge amount of business propaganda is to create wants
The answers to solve all these issues is to organize. Being alone you can’t do anything but if you join with other people, you can make changes
Under capitalism, investment is supposed to be as risk free as possible. No competition wants free markets - what they want is power
The government subsidizes corporations’ costs, protects them from market risks and lets them keep the profits
There’s never been much difference between the 2 business parties and the differences are disappearing
The CIA has been involved in drug running for generations (the politics of heroin book)
You need something to frighten people with, to prevent them from paying attention to what’s really happening to them. You have to engender fear and hatred
The first world lives in a highly indoctrinated society
Neoliberalism is nothing more than the imperial formula: free markets for you and plenty of protection for me. The rich would never accept it but they’re happy to impose it on the poor
The UN does mostly what US business wants
‘Politics is the shadow cast on society by big business’ - John Devery
If people dedicate themselves to organizing and activism, we’ll gain access to broader audiences
If you extrapolate to the future, it’s very ugly but the point is it’s not inevitable. It can be changed but we can’t change things till we understand them.
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