Organization A is: Environmental Media Association. Organization B is Kellogg Garden Products, the chief sustainability officer of which is Kathy Kellogg Johnson, who sits on EMA’s Board. The problem is that 70% of their fertilizer mixes contain (cue scary organ riff) UNLISTED treated sewage sludge from city of Los Angeles and as we all know by now, this is toxic stuff filled with heavy metals, chemicals, broken down plastics and so on. Now, Kellogg has the right to put anything they want into their products, but you can’t call something with heavy metals ‘organic’ and you can’t call something with heavy metals in it ‘safe’ or ‘products you can trust’, especially if you don’t list it as an ingredient.
And the reason this has come out is that Organizations C and D, The Food Rights Network and The Center for Media and Democracy, blew the whistle on Organization B to Organization A. EMA 1
This is making Organization A extremely uncomfortable and the saga rolls out here. EMA 2
Now, the interesting thing is that I can’t find a thing in the LA Times covering this story and the other thing is – it is not just that growing veggies in this stuff will have the result that the kids will be eating veggies that have taken up such ‘healthy’ items as chromium and arsenic and other heavy metal contamination. It’s that the kids will be having direct physical contact with this stuff and we all know that kids are not exactly surgeons when it comes to washing their hands and so on. So, the chances of their ingesting this stuff is also pretty good too. Sounds like some people need to start calling not only the EMA but also the school district and get the kids out of the gardens before someone gets sick.
Fairy Tale Numero Due: Goldman Sachs Controls This Too. Want to know why food prices have gone through the roof over the past couple of years? There’s a lot of talk about Russian wheat crop failures and weather and climate issues but a large part of the truth is that Goldman Sachs devised (I know you guys are getting GS Guilt Fatigue but) a product that, along with the deregulation of the Futures Markets, changed everything.
“In 1991, Goldman bankers, led by their prescient president Gary Cohn, came up with a new kind of investment product, a derivative that tracked 24 raw materials, from precious metals and energy to coffee, cocoa, cattle, corn, hogs, soy, and wheat. They weighted the investment value of each element, blended and commingled the parts into sums, then reduced what had been a complicated collection of real things into a mathematical formula that could be expressed as a single manifestation, to be known henceforth as the Goldman Sachs Commodity Index (GSCI).
For just under a decade, the GSCI remained a relatively static investment vehicle, as bankers remained more interested in risk and collateralized debt than in anything that could be literally sowed or reaped. Then, in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food….Goldman’s index perverted the symmetry of [the old grain markets] system. The structure of the GSCI paid no heed to the centuries-old buy-sell/sell-buy patterns. This newfangled derivative product was “long only,” which meant the product was constructed to buy commodities, and only buy. At the bottom of this “long-only” strategy lay an intent to transform an investment in commodities (previously the purview of specialists) into something that looked a great deal like an investment in a stock — the kind of asset class wherein anyone could park their money and let it accrue for decades (along the lines of General Electric or Apple). Once the commodity market had been made to look more like the stock market, bankers could expect new influxes of ready cash. But the long-only strategy possessed a flaw, at least for those of us who eat. The GSCI did not include a mechanism to sell or “short” a commodity. This imbalance undermined the innate structure of the commodities markets, requiring bankers to buy and keep buying — no matter what the price. “ Goldman Sachs and the ever growing food crisis
Garden Tales: Well, the rain finally stopped (but not before washing out a bunch of roads and undermining (in the most literal sense) a big section of I81 right…across….the…valley from Chez Siberia, so all the traffic (and we’re talking thousands of cars and tractor trailers) going southbound is now moving in the ‘semi-parked’ position on the secondary road right…in…front..of…Chez Siberia (if you notice a trend here, you’re not missing anything). And because the rain stopped and the sun came out, the grass took off and some things came back up in the garden that we had not noticed that we’d forgotten last fall.
Like this: this is the fennel from last year coming up again. Now Florence fennel is a biennial (actually there are a lot of veggies that a biennials, which means that the plant grows the first year, and then blossoms and sets seed the second year. Carrots are a good example. We eat the first year roots so we never get to see it come back in year two and blossom and set carrot seed), so we ate fennel in salads and cooked last summer and this summer what will happen is that it will send up a flower spike and set fennel seeds. So, when the flower heads get started, I will put them in paper bags, tie the ends closed, and harvest the seeds (instead of the seeds getting scattered all over the garden and our having more fennel plants than we know what to do with the year afterwards – trust me, with all the security measures, we’ll still end up with seeds on the ground). What can we use fennel seeds for ? Indian, Italian and other Mediterranean dishes use fennel seeds.
And, in the ‘put my money where my mouth is’, we are going to grow celery at Chez Siberia this year. These are the seedlings, which came up with no fuss or bother in a plastic salad box filled with growing mix. Celery seeds are teeny, so I just ‘drew’ indentations on the moist soil, taped them in and then scattered some pearlite™ over the top so that they’d get some light too. I put the salad box top on top, left it on a sunny table in the living room and ten days later – wa la. Now to find out how to grow the veggie in the garden. This is not something we have ever grown before but given the amount of chemical contamination residues that this vegetable can have, according to the USDA, I figure it’s worth a shot.
Hope everyone is having a great weekend. Until the next time…




19 Comments

‘All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food’
Thanks, and insisting that investors have the capacity to take possession of what they bought would put a severe crimp in that.
Ruth – it is not just grains (and the resulting food stuffs) – it’s also things like natural gas and other energy items as well.
As I understand from the previous gasoline price run-up, there were some investment houses setting up rental for storage drums for the oil to keep their purchase off the market longer.
Hi Toby.
A commodity market can’t exist without both long- and short- positions. In fact, the whole function of a commodity market is match buyers and sellers. If you use grain (say, you’re a flour mill) and you’d like to know what price you’ll pay for grain six months from now, you buy a contract. If you’re a wheat farmer and you’d like to know what price you’ll get for the wheat you’ll harvest next month, you sell a contract.
Commodity contracts are almost never fulfilled by delivering the commodity (I’m tempted to say never fulfilled, but there’s probably an exception I don’t know about). What happens is that the price bought and sold converge at the contract’s due date. Then everyone settles up in cash. There are winners and losers, but as long as you have an interest in the commodity itself it doesn’t amount to much. An interest in the commodity means you either produce it, or it’s an important raw material for your processes.
A vehicle that only takes a long position is stupid: outside of metals, commodities have a (fairly short) shelf life. They have to be used, because either they’ll go bad (grain sprouting or mold growing in it), be eaten by something else (rodents in the grain silos), or storage is limited (petroleum and especially natural gas).
This is another house of cards that will collapse, and we’ll end up bailing the system out.
Toby,
Excellent post! I sure am glad that somebody noticed Group B and told Group A. Let’s not forget that in that sludge there are remnants of all the different antibiotics from both animals and humans, along with hormones, both male and female. What these things will do to our children and the earth, I have no idea and am sure they, the PTB don’t either!
thanks, toby! i live in l.a. and have been following the attempts to get more fresh foods into the school system, but was completely unaware of this story. it will be interesting indeed to see how the celebs involved react.
Breaking!!!
President Obama will make a statement tonight as early as 10:30 EST. The topic has not been announced but the subject matter is National Security.
Make that 10:30 PM EDT.
Wow! I was just about to suggest front-paging this or Jill’s diary, and I see it’s been done.
“But the long-only strategy possessed a flaw, at least for those of us who eat. The GSCI did not include a mechanism to sell or ‘short’ a commodity.”
If you think a commodity is going to go up, you buy a contract; if you think a commodity is going to go down, you sell a contract. The movie Trading Places roughly demonstrated shorting commodities:
http://www.dangerouslogic.com/trading_places.html
Hmmmm…Iran? Syria? Libya?
aybe they got OBL? Surely, it’s not that they offed Ghaddafi?
I guess he just interrupted Trump
Make that 10:50 pm ET. Bmaz has the goods:
http://emptywheel.firedoglake.com/2011/05/01/breaking-unusual-hasty-sunday-night-obama-statement/
It’s OBL. Can we come home now?
Obama will announce Obama is dead. Ding Dong.
I’m not sure this a problem; you just have to decide if I’ll go to the job interview or eat. Yep just another little problem for those like me to over come. Ya sure
Those LA folks should be just as worried about the cumulative smog effects upon children. Fact: in 1955 only 2.2% of LA basin school kids had asthma. Fact: in 2005, 26.5% of LA grade school kids were asthmatic. Atheletes from LA were likely to have a 10% reduction in O2 absorption. In china, a reportedly 20 million die annually from smog related illness, while another 120 million are made deathly ill… When you purchase a cheap imported toaster, keep in mind the Chinese, who, since we love cheap stuff, build a brand new coal fired electrical generating plant every 88 days…and watch their toasters fly… If consumers developed a code of ethics for overseas products that would boycott environmentally unfriendly manufacturing and food products… a forum or blog perhaps, then the growing numbers of ecology minded consumers would ultimately know which products to buy… inexorably halting the cheapo manufacturing juggernaut worldwide…think of the power for change such a blog would enable…wait a minute…isn’t google doing a variant of this now? Yahoo!
Celery likes wet feet and lots of mulch! If you leave it to grow without mulch, it’ll become very green. Store celery tastes very different from stuff grown at home. If you want ‘straight stalks’ tie them together when they are strong enough to handle it… i usually use a torn in strips t-shirt.
Off to work for me…
Good article. As to fairy tale one, the sludge, it’s not just sludge that’s contaminated. If one looks at the official USDA document NOP-5016 (http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5087122) the USDA allows all sorts of contamination in what is considered “USDA Organic” compost including specifically disallowed (for USDA Organic production) pesticides. Further there is no testing of such compost as per what appears to be USDA recommendation against doing any testing despite the law establishing USDA Organic requiring such testing (http://www.usda.gov/oig/webdocs/01601-03-HY.pdf.)
BTW: NOP-5016, which allows contaminated compost in USDA Organic production goes against both the USDA internal staff recommendations and the previous outlawing of the using contaminated compost by the California Department of Food and Agriculture.