Robber Barons Blow Commodities Bubble

With global workers increasingly squeezed in a tightening vice of asset deflation and commodity inflation, the Wall Street Journal reported recently that a single trader owns ½ the planet’s copper.  Stashed in a London Metal Exchange (LME) warehouse, its owner is said to be J. P. Morgan Chase.

The same Journal article- “One Giant Pile of Copper” by Tatyana Shumsky and Carolyn Cui- states that one trader controls 90% of LME aluminum stockpiles; 50-80% of LME nickel, zinc and aluminum alloy; and 40-50% of warehoused tin.

Yet another Journal article bragged that US oil storage facilities are full to the brim, while gas prices eclipse the $4/gallon mark.  It’s a strange sort of math.  While the corporate media explains away commodity inflation with code phrases like “Chinese demand” and “supply shortages”, the pain that workers are feeling at the grocery store and gas pump alike is plainly being administered by speculative arms of the Eight Families Illuminati bankers.

For these far-too-inbred Robber Barons, commodities are just another market to be run up before being crashed, all naturally in accordance with pre-established Cartel insider trading positions.  With the advent of the oil spot futures market in 1973, the oil industry came under increasing control of the bloodline banksters.

As a senior oil tanker industry source from Fearnly’s Research of Norway put it, “Today, between the day a given tanker is loaded with oil in, say, Dubai, and the time it is finally offloaded at, say, a US or Rotterdam refinery, that oil cargo could be sold 15-20 times or more.  Derivatives have made this possible…on either the London International Petroleum Exchange where Brent contracts for North Sea oil are sold, or on the Nymex (New York Mercantile Exchange) in New York, where West Texas Intermediate contracts are traded.  You only saw the first oil trader come in 1974 with Philbro Corporation.  Today the market is totally dominated by traders.”

In 2000 oil refiner Tosco- which had purchased many outdated Four Horsemen refineries following the passage of the 1990 Clean Air Act- filed a $10 million lawsuit in US Federal Court in the Southern District of New York.  The suit charged that Arcadia Petroleum- the oil trading arm of Japan’s Mitsui conglomerate- along with the Swiss oil trader Zug, used derivatives and futures contracts to create a market squeeze on the London exchange which sent gasoline prices skyward.

A week later OPEC President Ali Rodriguez of Venezuela countered bankster propaganda that OPEC was to blame for the 2000 oil price spikes by releasing a report documenting how $8 is tacked onto every barrel of oil by speculative futures traders.  The report argued, “Speculation in the futures market and manipulation of the Brent market are the real cause of exploding oil prices over the past 15 months”.

That $8 in 2000 has turned into $25-$30 today.  The dominant players in the oil futures market are Wall Street investment banking giants Morgan Stanley, Goldman Sachs (through its J. Aron subsidiary), Citigroup (through Philbro), Bank of America Merrill Lynch, UBS Warburg, Deutsche Bank and JP Morgan Chase.  A 2007 60 Minutes expose showed how Morgan Stanley and Goldman Sachs engineered that year’s $4.00/gallon gas spike by nearly cornering the global oil supply.

This same Cartel controls merger and acquisition activity, Third World debt negotiations, municipal and corporate bond underwriting and IPO creation.  They created the internet, NASDAQ and housing bubbles.  They then shorted the housing market, passing off bad debt via fraudulent mortgage backed securities.

When Bush Treasury Secretary and Goldman Sachs insider Hank Paulsen put a gun to out collective heads, we handed the Robber Barons $1 trillion and the remains of bankrupt competition- Bear Stearns, Lehman Brothers, Washington Mutual, Merrill Lynch, Countrywide and Wachovia- for pennies on the dollar. The Cartel is now the largest buyers of foreclosed houses on courthouse steps across America.

The inmates are running the asylum.  And scum really does rise to the top.

While their broker shills push small investors into the risky commodities market, the Robber Barons amass new trillions hoarding the stuff, pushing prices to record levels.  If their CNBC carnival barkers are successful, you can be sure that 2011 will be remembered as the year the commodities bubble burst.  If not, there will be more price pain for global workers.

If the bubble does burst, the Illuminati octopus will simply make and break another market.  Perhaps a chain of soup kitchens, a Chinese riot-gear IPO or Ice Age futures?

Charmed, I’m sure.

Dean Henderson is the author of four books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve & Stickin’ it to the Matrix.  You can subscribe free to his weekly Left Hook column @ www.deanhenderson.wordpress.com