No matter for Beijing that it has its railway

Everyone is agreed, is it not The world economy was too dependent on the financial markets and too unstable. The crisis must come out more long-term growth, hear a world where the industry, in the broad sense, is a first place and a less unequal world.

We know what happened to the finance: it has regained its role of front and all profits. And if it is moving even to a tighter regulation, the will of the Genii in the bottle has disappeared, no one argues more in order to prevent new bubbles.

This week has become a major event that reinforces the bad feeling that all again as before, or even sometimes empire. It's iron ore, this heavy red earth, matrix of civilization since the dawn of time. Both groups mining giant, the Anglo-Australian BHP Billiton and Brazilian Vale, agreed to break the system of annual fixing of prices of ore that existed for forty years and impose a quarterly renegotiation indexed on spot market prices. European and American steelworkers screamed, but the Chinese, if hungry for raw materials, and the Japanese agreed. This decision is in the exactly opposite of the post-crisis wish: to more instability and more financial market.

Before the detail, a note: today the global giants have more power than many States. If, in this crisis the public Governments took appropriate and coordinated measures that helped to avoid the mistakes of the 1930s, it should not be that private Governments, the directions of these giants, replace in the blindness. They lead then inflation and/or a protectionism that plunge us in the great depression. That avoided the right hand, left hand is lead: Giants, the CAC 40 companies, are aware

First consequence of the decision of BHP-Vale, the new cartel of iron ore: prices will climb immediately 30-50. Any downstream impact the effects cascade to the buyers of cars and apartments. The circumstances are aggravating since BHP Billiton currently discussed with the third great mining, Rio Tinto, to merge their Australian ores. The case of iron could obviously give ideas to other producers of raw rare or less rare but "cartélisables". The crisis would lead to a flowering of néomonopoles under the eye interested in China In any case: a wick of inflation is lit.

Second result: Steelworkers will logically have to "cover" the fluctuation of the courts of the ore. Financial derivatives markets sought to limit see the contrary to open any new vein of speculative constructions.

Third consequence: the volatility of the course, sought to calm, is again encouraged. OPEC, OECD and the International Energy Agency are to meet in Mexico to try to find ways to regain control of the oil price. Without hope in truth, since trade of crude paper is 35 times higher than real gross trade, as calculated it the Professor Jean-Marie Knight. With the crisis, the volatility has increased by more than half in the oil, gas, nickel, copper, wheat, silver, cocoa, sugar, soybeans and the palladium, according to Goldman Sachs, who believes that the only way to calm is to increase the capacity of storage (1).

Iron ore was immune from this permanent maelstrom; This will no longer the case. Its price will be indexed on the spot markets, which consider the State of stocks and consumption. Clearly, prices will be more stalling on the Chinese economy. Emerging countries took power, it is normal and it is expected. But, and this is alarming, this toggle strengthens the volatility rather than it not reduced. No matter, for Beijing, that it has its railway. China built the new world in his image: the powerful dominate without any other considerations.