Street Rap

There is a new word, apophenia, created by Klaus Conrad to describe false correlations. I propose a duality with gestalt. This isn’t fair to gestalt. Gestalt is intended to break you out of your current patterns and recognize more useful ones. Sometimes we recognize incorrectly. Let us apply this duality to the USA invasion of Grenada in 1983.

When Thatcher remonstrated with Reagan over this breach of international law and convention, Reagan responded that he wanted some nutmeg for his eggnog. This was just after England had defended the Falklands.

While this remark is appropriate within the history of the spice trade, in 1988 Grenada exported 2,230 tons of nutmeg and 256 tons of mace for a total export value of $15,761,107. This was a good year.  Let us find the street value. 2,486 tons is 87,691,069 ounces. I have a price of 6 ounces is $10 listed on the internet currently. Divided by 6 is 14,615,178. Times $10 gives a markup of more than 10 times the export value. Somewhere in that 100 million there might be funds to influence policy.

The tragedy of the commons as applied to institutions, bribes, is precisely because the profit of such actions far exceeds the expense. Congress scrounging for contributions for example. Winners get to fix the game is the whole point of Adam Smith’s Wealth of Nations. Military is a sunk cost.

Take the financial value of the nutmeg. The trade in nutmeg supports various business institutions. The multiplier of financial value is constrained by the reserve requirement. If the reserve requirement is 20% then the multiplier will be 5. There is also interest and the future value of money. Taking an arbitrary value of 5 as the multiplier times $100 million, on an annual basis, almost sounds like money.

The financial value of nutmeg is constrained by its earnings and uncertainty. More fungible assets, oil reserves, undeveloped land, don’t have that limitation. Each financial transaction requires reassessment of the asset. The development of land or the pumping of oil can crash their financial value because they are now associated with earnings. Dreams sell. It is a shame that we don’t have the technology to claim oil reserves without digging and then capping a well.

In 2021, China is harassing the Philippines over their oil. This seems silly. Where is the Philippines getting the financing to develop their oil? What is the market for the Philippine oil? All that is being determined is which Chinese company will develop the oil. Until one realizes that it is the financial value of the Philippine oil reserves that turns Chinese Communists into slathering greedy imperialists. We need to find means for nations and their populations to profit from the trade in financial value of their assets.

Returning to the events of our invasion of Grenada: Maurice Bishop, the Prime Minister of Grenada, negotiated a better price for Grenada’s nutmeg. Within the month, Bernard Coard with the support of Cuba overthrew and murdered Bishop. An important American principle had been violated. It is yet another humiliation that our founders chose our name in the belief that we would one day physically cover two continents. As it is, we dominate those two continents. The principle is that if you are going to fix it in the Caribbean, you don’t go to Cuba, you come to US’ns.  After the US invasion, Grenada lost Russia as the largest and most generous buyer of its nutmeg for a time.

The financial value of Grenada itself can be understood as its debt. Through debt restructuring, grants, tourism, and selling passports enterprising Grenada reduced its debt from just under a billion US dollars in 2015 to 720 million in 2019. This is an island of 112,523 people and 134.6 square miles. In 2019 unemployment was 15.2%. In 2018 debt was 62.7% of GDP. I Don’t know how the population would have fared under General Austin. Austin took over from Coard for six days before our invasion. Today the primary industry of Grenada is debt. President Reagan’s comment was factually invalid, the invasion was not about nutmeg. The statement was in the correct spirit.

Applying the principles of gestalt, the event of the Grenada invasion took place in the context of the United States of America Empire. A good example is the career of Aristide, the prime minister of Haiti. When Aristide was overthrown in 1991, the Haitians didn’t waste time singing or smuggling guns, they lobbied Washington until we sent forces to put him back. This is how to deal with Empire. Unfortunately, drug cartels and industrialists have more clout, and Aristide was back out again.  Haitian debt is a fiction. As Haiti has no autonomy the debt is treated as ours and we pay the interest. Statehood for Haiti.

Whispers in the boardroom bring deaths in the jungle. If we are to get past the flutter and theater, we must understand the profit.