Tuesday, 20 July 2010

I should cocoa!

Cocoa beansImage via Wikipedia
As reported in the Telegraph, "Even Willy Wonka might struggle to use this much chocolate. Yesterday, somebody bought 241,000 tonnes of cocoa beans."

An odd story you may think but it's a fantastic example of why we need to knock this unbridled capitalism on it's head and replace it with something that serves the people of this world.

Someone bought all of Europe's cocoa, and we know not why and we know not who. In the real world our reaction should be along the lines of 'why the hell should I care'. But in the make-up-the-rules-as-you-go-along world of capitalism this strange act affects everyone both directly and indirectly.

Since this resource is now controlled by one person or organisation they can, if they wish restrict supply. Even the thought of it has sent the price of cocoa to it's highest level for 32 years. If they were to restrict supply then the price would go ballistic and whoever held that stock would make a killing. And a killing is what they are looking to make.

So we can see that this 'price' of cocoa isn't related to the 'value' of the cocoa as a substance but the price is related to how the market reacts. Which begs the question as to why we have a system that allows this sort of activity? And the answer is because it can make a few people extremely wealthy. They can control the price, they can transfer money from the consumer to their pockets by the simple act of buying. As my mum would have said, "Money comes to money."

In the end this sort of high finance shenanigans needs to be dismantled so that the ability to do such things no longer remains. By democratic force or by the force of the people.

How long though, how long?