Posted tagged ‘portfolio investments’

OIL SPECULATORS CASH IN ON LIBYAN TURMOIL

March 8, 2011

OIL SPECULATORS CASH IN ON LIBYAN TURMOIL

Erle Frayne D. Argonza

A full-blown civil war is now brewing as I write this note. As the gloomy events unfold, greedy speculators are busy taking advantage of a conflict situation by playing it up nauseatingly on the petrol spot market. Wars and mini-hotspots surely have a way of making some greedy families make lots of money, so let me add more reflections about the Libyan hot fires’ impact on oil price.

The notorious financier speculators have been planning all along to cash in on a global conflagration that should have pitted the Sunni-Zion alliance versus Iran-led coalition. Such a planned catastrophe was suddenly derailed by the mass rousing of younger generations of Arabs who now desire for the overthrow of their respective tyrants or sovereigns.

With the world war III prospect now sorely diminished, the financiers had to find a quick fix to their addictive greed for easy profits. And that’s how their fixated eyes marveled at the conflict that suddenly unveiled in Libya which, as everybody knows, sits on huge reserves of oil from where the tyrant largely derives his income for country and family.

Nobody knows how long the conflict lasts in Libya, but it is getting clearer as of this writing that Kadhafy’s legitimacy before his own supporters is rapidly effacing. The situation is as fluid as petrol gushing out of Libya’s oil wells, so it pays to keenly observe the events on a day-to-day basis.

One thing though is certain about the conflict’s time frame: it will be short, and no protracted war will come from the forecast loser—tyrant Kadhafy and minions. So, given the short time frame, the speculators have to ride along with the waves of turmoil, and cash in quick on the hot events.

So the spot market is ablaze at this moment with a sort of hour-by-hour anaysis of the situation and superficial forecast of oil prices. Superficial, because insider trading is the in-thing among the dirty players in the same commodity market, with a coterie of financiers fronting for their invisible sponsors among the Anglo-European oligarchs. There is no science into the oil spot market, just plain mafia-type dirty speculations.

Already, retail oil prices are skyrocketing in countries that are dependent on oil imports. In the United States, oil prices get hiked on a daily basis. East Asian countries follow very closely not far behind from the USA in terms of constant rising of retail prices, or those that hurt the pockets of downstream end-users. Food prices are direly affected by the same OPH (oil price hikes), and so you could imagine the glee of another branch of the dirty speculators cashing in on the food commodities trading.

With the dizzying rapidity of the flow of conflict-induced events, we can only surmise that OPH will hover the $170-$200 per barrel of oil (‘sweet crude’ standard). As the events are happening, anti-OPH and anti-food price hikes are now raging across the globe, including the Philippines. These protest actions are complicating the mass panic that is generated by the rising prices of oil & food, with potential hysteria that could explode into food riots in the short run.

While billions of poor folks suffer from the rising prices, the greedy speculators’ pockets are satiated anew rendering them instantly happy over very fat profits. Commodities speculation is done without any compunction over their catastrophic effects on peoples, as they are done by conscienceless market players.

But never forget that the greed of the dirty speculators is insatiable, and so the said financiers’ eyes are again busy searching for some other hot fires in the event that the Libyan conflict ends soon. Those hot fires are no other than the socio-political turmoil that is now brewing across the Arab region.

[Philippines, 04 March 2011]

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EURO-AMERICAN BANKRUPT COMPANIES ARE LEPERS, ASIANS BE WARY!

August 31, 2010

Erle Frayne D. Argonza

Leper Companies, Inc. could very well describe the so many huge corporate entities in the West that are now expectantly waiting for some investors to breath fresh life into them. The compass of that search points to Asia as the source of the badly needed ‘smart money’.

What a mess indeed had Western economies turned into, as their respective enterprises have been crashing to bankruptcy levels after liberal policies have become granite rock in them since the Thatcher-Reagan era. De-industrialization, massive loss of jobs, and measly investments in S&T have made elephants out of huge companies such as the once mighty Bethlehem Steel.

“Bankruptcy! Bankruptcy!” would be an apt line in a classic opera production in New York and London, save that even classic opera groups of the West might even go the bankruptcy route. From manufacturing to culture industry, inclusive of Hollywood stalwarts, Western companies are going down the drain one after the other.

Insatiably greedy financiers are of course waiting in the wings to dip their hands into those crashing industries, waiting for the moment to buy them at dirt cheap prices. They did that after the 2nd world war, a war that the global oligarchy created, when they bought so many European factories at rummage sale. Their war chest had been reinforced by slash funds past $3 Trillions circa 2007 yet, so they’re ready for the ‘ukay-ukay’ transactions any time (‘ukay-ukay’ is Filipino term for re-sale of used clothes at cheap dirt prices).

The same financier oligarchs did the rummage buying spree on former Soviet bloc economies’ flattened factories groups, with mafia groups joining the fray for purchase of the rummage sales. At one instance in the early 90s, Russia’s mafia groups owned and controlled 80% of the rummage industries, thus prompting patriotic KGB chekka to replace then incumbent president Yeltsin, a puppet of the financier oligarchs, with Putin.

Asia has been the undisputed driver of the global economy more so when both USA and Europe began burning economically as early as 2007. Logically, the compass of SOS for fresh investments and loans would be Asia notably the China-Korea-ASEAN-India corridor.

The involvement of the Indian group Mittal in purchasing Alcelor of Europe is classic case of Asian buys. Bookkeeping accounts seemed to have served Mittal right then, with the merger not exactly draining down the stock value of Mittal in the bourses. Mittal-Alcelor came to be born as the largest steel producer, churning out a total volume of 100 tons of steel every year (toppling Korea’s POSCO as top producer).

That was then. The times have quite changed in an era when changes happen so rapidly. Western enterprises, notably those of the USA’s and EU’s, are magnets for perceptions of being leper corporations. Getting associated with them could burn down an Asian company’s own par value, and whether the trend could be reversible is something that is tantamount to launching a Herculean PR campaign to reduce negative perceptions owing to buy-ins/mergers.

Enormous window dressings have to be applied to the accounts of the leper companies too so as to sweeten their toxically sour values and make them more palatable to Asian investors. Whether Asia’s negotiating agents are naïve to the window dressings is something worth researching.

Caucasians still have that perception—conscious and/or unconscious—of Asians as “monkeys with no tails” (subhumans) who can be lured into traps without the latter noticing it. Western financier oligarchs led by the likes of the UK-Netherlands royal houses and Rothschild empire will brook no quarters in condescending on Asians who they regard as cattle or eaters worth controlling, subordinating as Mandingos, and short-changing in business transactions.

Such a perception hasn’t changed. Look at how the Indian executives of Mittal et al are perceived in Europe today not just by the oligarchs but by the White executives in their payroll. Why don’t you examine case studies in Western business schools and find out for yourself whether Asian groups are worth studying at all in the West. It’s the same old Victorian perception of racial hubris and arrogance at work!

That may just be what western ‘corporate social responsibility’ is all about: to continue derisively condescending at former Asian colonies by dangling carrots to poor communities in Asian backyards. In exchange, Asian ‘smart money’ moves to the West to ensure that leper companies keep on churning out more funds, with 1% of the profits later to allocated for ‘corporate social responsibility’.

Is that what we can regard as an impeccable fair exchange?

[Philippines, 13 August 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]