Freakonomics Radio 633. The Most Powerful People You’ve Never Heard Of
109 snips
May 23, 2025 
Javier Blas and Jack Farchy, seasoned journalists from Bloomberg, explore the enigmatic world of commodity trading. They unveil how traders exploit geopolitical chaos for profit, shedding light on their vital role in global crises. Listeners will hear about intriguing historical examples, like a trader's influence during Jamaica's oil shortage, and the ethical challenges facing the industry today. The duo also discusses the shadowy operations in contemporary oil markets and the shifting dynamics caused by recent international events.
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How Coffee Trading Works
- Big coffee roasters rely on commodity traders to source coffee from thousands of farmers globally.
- Traders handle the complex purchase, transport, finance, and delivery process for roasters like Starbucks.
Mark Rich Saves Jamaica's Fuel Crisis
- In a 1980s crisis, Mark Rich diverted oil tanker cargo to prevent Jamaican fuel shortage and chaos.
- This quick action saved Jamaica's government and built a profitable long-term relationship with the country.
Four Factors Shaping Commodity Trade
- Four key historical factors shaped commodity trading since WWII: nationalizations, Soviet collapse, financialization, and China's rise.
- These events expanded commodity trade opportunities, risks, and profit margins dramatically.
