Topic: Commodity Trading

The history of commodity trading is highlighted through the career of Marc Rich, who made billions trading Iranian oil through a secretive pipeline in Israel. Rich was eventually indicted by prosecutor Rudy Giuliani for tax fraud and trading with Iran during the hostage crisis. He and his partner, Pinky Green, fled to Switzerland and continued their business as the world's largest commodity trading house until Rich was pardoned by Bill Clinton.

Leonardo DiCaprio is revealed to be a supporter of the Carbon Trade Exchange (CTX), a global platform for trading carbon credits, renewable energy certificates, and water rights. The hosts examine the board of directors and the exchange's role in commercializing environmental commodities. They frame the "Green World Rising" documentary series as a promotional tool for these new financial markets.

Venezuelan President Hugo Chavez announces the nationalization of gold mines and the withdrawal of $11 billion in gold reserves from Western banks to move them to Russia and China. Nigel Farage joins the discussion via clip, predicting that gold could double in value as the Western financial system faces a protracted banking crisis. Adam Curry sets a personal price target of $2,750 per ounce for selling his holdings.

A report from The Telegraph details a mystery trader who purchased nearly all of Europe's physical cocoa stocks, valued at approximately $1 billion. The trade sent cocoa prices to their highest levels since 1977. The hosts question the lack of transparency in the market and the inability of financial reporters to identify the individual or group behind the massive acquisition.

Representative John Boehner presented a complex organizational chart on the House floor illustrating the massive bureaucracy created by the cap and trade bill. The Environmental Protection Agency (EPA) sits at the center of a web involving the Department of Energy, the Department of Labor, and the Commodity Futures Trading Commission. The hosts argue the bill expands government oversight into nearly every federal department.

High oil prices are attributed to trading loopholes in the City of London, a unique financial entity with its own laws and mayor. The "Enron loophole" allows for excessive speculation in oil futures without the disclosure requirements typically found in US markets. The US government is reportedly attempting to pressure the City of London to adopt more transparent trading limits.

Crude oil prices reaching $126 a barrel are attributed to speculative futures trading rather than supply issues, with predictions that costs could hit $200. The weakening US dollar has created a market where European tourists can purchase imported goods in America for significantly less than in their home countries.