Mad Cow Disease, Cattle Futures Market Manipulation
A reported case of mad cow disease at Baker Commodities in the United States triggered a temporary ban on American beef by South Korean supermarkets. Cattle futures rebounded quickly after hitting a nine-month low, leading to claims that the event was a political and financial maneuver rather than a health crisis. Historical parallels are drawn to the 1929 stock market crash, where journalists were allegedly bribed to "paint the tape" and manipulate stock prices through strategic news reporting.
mad cow disease· baker commodities· cattle futures· bloomberg· south korea· market manipulation· stock market crash
00:00 I swallowed the slide whistle. Enjoying my sustainable slavery here at Camp MoFo in the capital of the drone star state, Austin Tejas. In the morning everybody I'm Adam Curry and from northern Silicon Valley where it's raining I'm John C. Dvorak Alright man what happened with the war on chicken dude? What about it? It turned into the war on mad cow Well the chicken thing wasn't working out This is a big...I'm like WHAT?!
00:47 How can that? They can't be like doing that. It was the war on chicken now the war on chicken will return they've been busted I finally got a clue it was just all PETA always bitching about everything Actually think I found out what that was about okay, the war on chicken Theme because maybe last time we get to play it that's right and let's say let's do that right now Chicken I've become so overly sensitive to these PR moves now that everything i see is like, oh there's got to be a PR move! I gotta go check it out. And so here's what came up on this one So this uh... for those of you who didn't know It probably was worldwide news Oh we've got the mad cow disease in America
01:42 And, uh... Mad cow! Mad cow. Mad cow. Mad cow." They showed the crazy cow with it chewing with his tongue out the side of its face which is the international symbol for mad cow Right? And it's like oh this is horrible and this cow was discovered at Baker Commodities. And Baker Commodities doesn't take- doesn't make cow meat for human consumption If you look at baker commodities.com, they take basically dead animals who are already dead and they process them into biodiesel leather jackets is literally on their website They've got a little flower sticking out of a petrol tank that's your that's your bio That's your dead cow biodiesel They've got hides and see some leather jackets yellow grease
02:31 Which is, uh... What's that? Some kind of cooking oil I guess. Tallow! It's not used for cooking No no it's tallow but they also have yellow grease What's yellow grease? I don't know. I don't like this it's like pink slime Yellow grease is the product produced from the recycling of used cooking oil that is utilized as a high energy feed additive We see a bunch of very happy chickens in the picture anyway, so this has nothing to do with with the human food chain apparently, as they say. And things happen really quickly so first it was like, oh mad cow! Mad cow! Mad cow! Mad cow! Mad cow! Mad cow! Show the picture of a mad cow! And then it's like don't worry about it. It had bovine disease inherent that happens. Don't worry about it then... Hold on a second
03:28 Maybe you could do a cartoon voice. That bit you do with the blah, blah, blah is actually quite amusing and very cartoonish. Okay well I'll start auditioning for that. Looking at our production numbers today I might have to Yes we're below the minimum But then here's what caught my eye and I'm aware of this. South Korea then says, oh we're no more meat from America! And we know from Uncle Don that the beef import thing in South Korea is a big deal right? It's a huge just they're very proud that they grow their own beef and eat them their own beef it's a high quality product and they are very reluctant to get involved in the world trade of carcasses
04:12 of dead things. So they, so they had two big supermarkets said no more American beef we don't trust it and literally 24 hours maybe 30 hours later oh it's okay we're back on! We're good with the beef from America I'm like wait a minute... so I go searching around. Someone was pulling strings on that one yeah someone must have been and then I read you know in all these uh I'm not really good at the charts I'm gonna ask you to take a look at this um Read you know like analyses of this and some Pete some people saying oh, this is not a food health and safety issue This is a political financial issue. I'm like okay the South Korea pulls lot of weight with the cattle futures And here's the report I get from Bloomberg and maybe I'm misunderstanding what's written here cattle futures rebounded from a nine-month low
05:06 as countries from Canada to Japan said they will continue to import American beef after the US reported its first case of mad cow disease in six years. So apparently, and if you look at the chart we see that the cattle futures were down and I guess if you were to manipulate these markets which... And there's a lot of high frequency trading in cattle futures as well What I understand that oh, well they see it everywhere that there's not the point okay So I could be wrong on this But is it possible that these and you see so much volume like a lot of volume just before the beginning of a question You haven't asked yet. Is yes It was manipulated
05:52 I'm reminded of a couple that over the last couple days PBS has been playing all these great stories to part like four hours of the bankers crash and especially on the 29th stock market crash. And there was a clip which is kind of relates to this in an odd way about how the market was manipulated in the 20's. Uh-huh? And I've got this 1920 stock market game clip and at very first, the clip I missed but it... The guy said he saw about the reporters that worked for all the major newspapers and how they were bribed into writing stories to get this to play the game but play the clip. The financial journals who want to take This includes reports from Wall Street Journal New York Times, The Herald Tribune you name it
06:34 So if you were a pool operator, you'd call your friend at the Times and say look Charlie there's an envelope waiting for you here. And we think that perhaps you should write something nice about RCA. And Charlie would write something nice about RCA. A publicity man called A Newton Plummer had cancelled checks from practically every major journalist in New York City then they would begin to what was called painting the tape and they would make the stock look exciting. They would trade among themselves, and you'd see these big prints in RCA And people will say it looks as though that stock is being accumulated Now if they are behind it You want to join them So well you bought new buy stock also now What's happening? Is a stock goes from 10 to 15 to 20 and now it's at 20 and you start buying other people stop by 30 40 The original group the pool they stopped buying this selling you the stock
07:26 Now 50, and they're out of it. And what happens of course is the stock collapses." Just about mid-March, just about the last week of March. All of sudden volume is up by four times the volume it's been since December What we do wrong is that we catch right after they do it Well, that's what the problem is. You have to actually literally be on the inside of it or be in the PR company. We're not on the inside of it. It's very hard to pick these things... This is a problem with amateur stock market people and I put myself in that category otherwise we wouldn't do this show. No, I wouldn't be talking to you nothing like that. No, we'd be in Paris having a nice meal so anyway
08:27 You can't you the guys who do this who pull the stunts? Unless you're part of it unless you're in with them. Are you just never you it's always whoa I just miss oh geez, I just missed that one It's just everything you'd just miss it And if you try to play the game, you'll usually get burned. Yeah, yeah, you usually get screwed. Because the idea is that you will get into... I mean like they said, there's guys who promote this thing as it goes up and they're the ones who are selling it. Right! Of course thats what it is right? You're selling on the news Yeah, selling good news and buying bad news. So let me just see who's... maybe there is someone in this company or someone that we would recognize because someone had to be on the inside of Baker Commodities? Well what I would do you know most of these companies have PR agencies and nowadays all the PR agencies are pretty much two major companies
