Economy
Related: About this forumWater futures set to join likes of gold and oil and trade on Wall Street for first time ever
The CME Group is set to launch futures contracts tied to the spot price of water for the first time ever this week.
The contracts will allow investors and farmers alike to bet on the future price of water. The contracts are tied to the $1.1 billion California spot water market.
While water will officially join the likes of gold, oil, and other commodities in being traded on Wall Street, the contracts will be financially settled.
This means buyers of the contracts who hold on through expiration won't be greeted by a delivery of millions of gallons of water like they would for other commodity based futures like oil and grain.
The water contracts are tied to the Nasdaq Veles California Water Index which was launched two years ago. The index is driven by the volume-weighted average of the transaction prices in California's five largest and most actively traded water markets.
At: https://markets.businessinsider.com/news/stocks/water-futures-to-trade-on-wall-street-first-time-ever-2020-12-1029870836
The California Aqueduct, which carries water from the Sierra Nevada Mountains to Southern California.
The Nasdaq Veles California Water Index Futures, the first of their kind, will allow water to be traded with commodities such as gold, oil, and cereals on Wall Street - a move activists warn could drive water utility rates even higher regardless of supply.
Faux pas
(14,672 posts)Seems dangerous to me. He who owns the water wins? Crazy.
sandensea
(21,627 posts)We've always been taught in school that "the world would run out of food."
It wasn't food; it's water.
scary as hell! We're lucky where we live, our's comes from a water pit (lol can't think of what it's really called) shared by only 3 households.
It's the continuing of the "we've got ours" shit from the raygun years.
sandensea
(21,627 posts)"Jared, it's me. Are we in on this water racket - er, I mean - opportunity yet?"
"Well, if it's not Perrier - I don't touch it!"
he doesn't know that low class isn't classy
SheltieLover
(57,073 posts)sandensea
(21,627 posts)You'll recall that Jenna Bush used her front post at UNICEF in '06 to buy 300,000 acres of land in Paraguay's hot, remote north - otherwise nearly worthless scrubland but for the fact it sat on the world's 3rd largest fresh water aquifer, the Guaraní.
Bush pal and all-purpose fascist financier Sun Myung Moon owned another 300,000 acres next door - as did the Bush-run Carlyle Group.
Dubya even had a massive air base - whose existence was denied for years - built just next door. A base with virtually zero geopolitical value - but for its straddling all that aquifer acreage.
Its existence has also been linked to a rash of child disappearances in the area, as well as prostitution and other crimes (of which Paraguay has enough as it is).
Not to make light of it - but all this reminds me a little of the 1985 Michael Caine comedy, Water.
In it, U.K. and U.S. interests jostle for control of a mineral water spring - accidentally discovered in a small Caribbean island, and found to be of exceptional quality.
Would that it were something so relatively minor.
SheltieLover
(57,073 posts)I hope there is some way to stop this!
sandensea
(21,627 posts)We can only hope.
bullimiami
(13,086 posts)sandensea
(21,627 posts)Everything's a racket to that man.
NoRoadUntravelled
(2,626 posts)sandensea
(21,627 posts)I'm surprised he hasn't tried to buy some 3rd world aquifer - like Bush did.
Well, he hasn't tried - that we know of.
NoRoadUntravelled
(2,626 posts)Nestle seems to have cornered the market on buying up water rights.