Archive for July 2013
Hundreds of millions of times a day, thirsty Americans open a can of soda, beer or juice. And every time they do it, they pay a fraction of a penny more because of a shrewd maneuver by Goldman Sachs and other financial players that ultimately costs consumers billions of dollars.
The story of how this works begins in 27 industrial warehouses in the Detroit area where a Goldman subsidiary stores customers’ aluminum. Each day, a fleet of trucks shuffles 1,500-pound bars of the metal among the warehouses. Two or three times a day, sometimes more, the drivers make the same circuits. They load in one warehouse. They unload in another. And then they do it again.
This industrial dance has been choreographed by Goldman to exploit pricing regulations set up by an overseas commodities exchange, an investigation by The New York Times has found. The back-and-forth lengthens the storage time. And that adds many millions a year to the coffers of Goldman, which owns the warehouses and charges rent to store the metal. It also increases prices paid by manufacturers and consumers across the country.
Thoughts right now about what it would feel like to be of the drivers of that fleet of trucks. Absolutely meaningless efforts in the service of bending a crimp in the system’s hose ironically to keep the profits fluid. Like a not quite as dark version of this:
“I avoided a vast artificial hole somebody had been digging on the slope, the purpose of which I found it impossible to divine. It wasn’t a quarry or a sandpit, anyhow. It was just a hole. It might have been connected with the philanthropic desire of giving the criminals something to do. I don’t know. Then I nearly fell into a very narrow ravine, almost no more than a scar in the hillside. I discovered that a lot of imported drainage-pipes for the settlement had been tumbled in there. There wasn’t one that was not broken. It was a wanton smash-up. At last I got under the trees. My purpose was to stroll into the shade for a moment; but no sooner within than it seemed to me I had stepped into the gloomy circle of some Inferno. The rapids were near, and an uninterrupted, uniform, headlong, rushing noise filled the mournful stillness of the grove, where not a breath stirred, not a leaf moved, with a mysterious sound — as though the tearing pace of the launched earth had suddenly become audible.
At any rate, go read the rest…