Monday, October 25, 2021

"Free Markets Collapsed Years Ago, This Is the Era of Controlled Markets"

 Note:
This is a very unusual article. The beef price chart attracted me. The economic theories proposed in the article are interesting, but the detailed explanations were confusing. So i heavily edited the article.
Ye Editor
 
Source:
https://theconservativetreehouse.com/blog/2021/10/24/price-inflation-does-have-one-benefit-more-people-understand-now-that-free-markets-collapsed-years-ago-this-is-the-era-of-controlled-markets-the-beef-industry-is-spotlighted/


"The ... high rate of pricing inflation is catastrophic to the American working middle class; however, there is one small benefit. 

More and more people are waking up to the reality that free market principles have been destroyed;

what we have now are markets controlled by massive multinationals.

... Economic security on every scale is what keeps YOU free.

In a brilliant outline of how the beef and cattle industry is now trying to fight back against the multinationals of Tyson Foods, JBS, Cargill and National Beef,

author Matt Stoller uses the cattle industry to talk about what we have outlined on these pages for ten years.  

The distance from the red line (steer price) to the blue bar (beef price) is the scale of the multinational profits inside this controlled commodity:"
"Despite high consumer prices, independent ranchers are losing money, and going out of business.

“If we don’t get some of these problems fixed quickly, we won’t have any independent ranchers in this country,” explained Oklahoma Farmers Union president Scott Blubaugh.


Why are there high prices to consumers and low prices to cattle ranchers?

Grassley had an answer.

“The four major beef packing companies control 80% of the cattle industry,” he told the House members.

And they are what he called “a chokepoint” for the entire sector.

In other words, follow the money.

In the beef industry, it’s not Amazon, Apple, Google, and Facebook suppressing business, but “the Big Four”

– Tyson’s, JBS, Cargill and National Beef,

who control 85% of the market
(and more in some regions). 

... When it comes to creating systems to maintain their elite status, both Republicans and Democrats are joined in unity. ...

... Remember, there is no such thing as a “commodity” market in the free market sense of the word. 

Those commodity markets are now “controlled markets“, and fully under the control of massive multinational agricultural corporations.

When I say most multinational corporations hate capitalism many people look confused.

Multinationals want control; some call that corporatism…. but the names are moot.

Multinationals want control of price and profit, and capitalism does not allow them control. 

That is why multinationals do not want capitalism.

Multinationals use lobbyists to generate regulations that stall competition.

Multinationals do not want competition; they are, by nature of their interest, anti-capitalists.

This misunderstanding is everywhere.

... The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the middle class has struggled, and exactly why the wealth gap exploded in the past 30 years.

... Joe Biden is an ally of the multinational corporations.

... Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity.

Underneath that economic activity there are people who hold the reigns of power over the outcomes.

... In the Western World, separate from communist control perspectives (ie. China), “Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar.

Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.

The same is true for “Commodities Markets”.

The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations.

The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.

FOUR BASIC ELEMENTS:

♦Multinational corporations purchase controlling interests in various national outputs (harvests and raw materials), and ancillary industries of developed industrial western nations. {example}

♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks. (*Note*, in China it is the communist government underwriting the purchase.)

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

... For three decades economic “globalism” has advanced, quickly.

Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?

... What was always missed in these discussions is that advocates selling this global economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress.

... It’s not natural at all.

It is a process that is entirely controlled, promoted and utilized by large conglomerates, lobbyists, purchased politicians and massive financial corporations.

... Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices.

The supply of the controlled product is then distributed to the country according to their ability to afford the price.

This is essentially the bastardized and politicized function of the World Trade Organization (WTO).

This is also how the corporations controlling WTO policy maximize profits.

... A multinational corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida.

The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.

If the U.S. lemon harvest is abundant, the controlling interests will export the product to keep the U.S. consumer spending at peak or optimal price.

A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.

The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.

The mistake people often make is calling this a “global commodity” process.

In the modern era this “global commodity” phrase is particularly nonsense.

A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market.

Individual nations each independently engaged in creating a similar product.

... Massive multinational corporations control the majority of production inside each nation, and therefore control the global product market and price. ...


... It is ironic when we discuss corporate financial payments to government officials in foreign countries we call them corrupt.

However, in the United States we call it lobbying, the process is exactly the same.

... The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth.

This is the basic premise, the cornerstone, behind the catch phrase ‘globalism’.

... To gain the same $1 profit, a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).

... The multinational agriculture lobby is massive.

We willingly feed the world as part of the system; but you, as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.


... Traditional Fascism was authoritarian government working hand-in-glove with corporations to achieve totalitarian objectives.

It didn’t work because the principles of free people cast aside the authoritarianism.

Then along came a new approach to achieve the same objective.

The World Economic Forum (WEF) was created to use the same fundamental associations of government and corporations; only this time the WEF was organized for multinational corporations to assemble and tell the various governments how to cooperate to achieve control.

Fascism is the underlying objective.

The WEF just flipped the internal dynamic.

Some have called this corporatism.

However, the relationship between government and multinationals is just fascism essentially reversed with the government doing what the corporations tell them to do.

Brutally obvious example:
   Big Pharma telling governments to promote the vaccine, and figure out the control details later.

Perhaps now we understand better how massive multi-billion multinational corporations and the political institutions they pay for were aligned against President Trump."

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