How Corporations are Profiting from Water Scarcity


Welcome back to Mantra Monday, I bring you the latest news on the financial markets and how they affect your life. Today’s topic is Water and why you should be concerned about the commodification of this precious resource. As you may know, water has been turned into a Wall Street product. But is this really about managing risk or controlling the price of water to make a profit? What have you done to ensure your water security? I encourage you to be as independent and self-sufficient as possible, as you can’t live without water.


0:00 Hedging with Water Futures
2:10 Institutional Investors
4:22 Investors Drill Wells
7:58 Water Security



I’m Lynette Zang, Chief Market Analyst here at ITM Trading, and also a very thankful, thankful prepper. So today on Mantra Monday, I just wanna talk about Water and what’s happening because you might recall that they turned water into a Wall Street product as well. U.S. Regulator welcomes water futures. A future is a derivative, by the way, as a tool to manage climate risk. How about as an using climate risk, as an excuse to take control of the water? See why gathering your own water and making sure that you have your own water source is so important?

Because, you know, I showed you this before, but once they put that in place, now they started these to make it look normal. Water futures, but you couldn’t trade on it. They just tracked it. That is, they tracked it Up until in December, 2020, CME group launched the NASDAQ Veles, California Water Index Futures a futures contract that allows traders to manage water price risk, just like traders are managing everything else. I’m sorry, but I don’t trust traders because traders are only looking for a little pickup and what, you know, I mean, look at it. What’s happened to the price of water? Now this one is talking about California, and we’re gonna talk about this, but you can apply this anywhere in the world, is that the price of water is going up because the traders have to make money, right? Yeah. So is it really about controlling the risk or controlling the price so that they make money? Wall Street has to turned almost all tangible assets into derivatives for trading because it certainly is a lot easier to trade it on a contract that is intangible versus going out for a bucket of water and saying, Hey, you want to buy this water from me?

And once it was turned into a product, well, what do you think happened? Institutional investors scoop up agricultural land in Central California. Big shocker. Of course they do. So now you’ve got the institutional investors crowding out the small farmers and honestly, who has access to cheap money? The institutional investors. But what, and you can see, because this is just taking explosion of permanent crops in Central Valley, land used require abundant year round irrigation. That’s almonds, grapes, and pistachios. But this is 2007 and you can see this heat map and this is 2021. And you can see that it has way more than doubled. It’s crazy. And this is abundant year round water irrigation. So for corporations, it’s all about profits. They don’t care about you. They don’t care about the small farmer. They don’t care if they’re depleting the wells. They don’t care about the impact on California because for them it’s been a groundwater gold rush. So this was about managing climate change, right? They always sell it like the CBDC’s are gonna be sold to you. Like, well, this’ll take care of inflation. There won’t be any more inflation. No, there’ll be deflation. So this was sold to everybody as managing climate risk. But what it’s really turned into is a gold rush for banks, pension funds, insurers who have been turning California’s scarce water into enormous profits, leaving people with less to drink. This is far more accurate than managing climate change. They just use that as an excuse and people go, oh, well, okay, they’re managing climate change, but whoever is doing this, which are these banks, pension funds, insurers, corporations, doesn’t give a about the small people.

And what have you done to ensure your water security? Here on this farm, I have, I put in five different ponds, right? It’s easy enough to build a pond. One of ’em houses a tilapia. So I’ve got fish as well as water. I’ve converted my swimming pool into in Aquaponic Pond. You guys have seen that. I’ve got the crawfish pond. So, but there are water bladders. I mean there are so many. There are rain catchment barrels. There are so many different ways that you can ensure that you have water security. And I encourage you to do this because if this is happening in California, it’s happening everywhere, everywhere. And it’s just about the money. So you have to make sure to be as independent and self-sufficient as possible. Cause you can’t live without water. So if you’re counting on them for your water, I mean, I wouldn’t up at the, up at the bug out location, I have deep wells, but I also have two 6,000 gallon cisterns. And you’ll see, because as we are putting in the hot houses, we’re doing rain catchment there. And we’re gonna show you all of what we’re doing up there to ensure that we have an abundance supply of water.

Investors near Allensworth. This is in California. Hancock, Gladstone and others and investors move into Woodville, TIAA, Hancock, PSP, which is a Canadian retirement company, Utah State Retirement Investment Fund, and others. So they’re going in and they’re taking over of the landowners that have drilled the greatest number of deep wells since 2019. Two of the top three are institutional investors. TIAA and the Public Sector Pension Investment Board of Canada. That’s that PSP that I told you about. So what’s happening is that they’re coming in and they’re drilling more wells, but they’re also drilling deeper wells, number of agricultural wells in California and they’re medium depth by year. So more wells are typically drilled during droughts. This is the wells drilled and these gray bars are droughts, okay? And this is the depth of the wells, right? And so you can see 1100 median well depth of major institutional investors from 2014 to 2022. The rest of the smaller farm community, they don’t dig as deep. So what’s actually happening is that the land is starting to cave because they’re pulling water out of the aquifer.

Of the landowners that have drilled the greatest number of deep wells. As I said, it’s the big institutional investors. So again, I ask you, what are you doing to ensure your water security? Cause there are two things you cannot live without. One is food and one is water. You have lots of options now. If you wait too long, you might lose all of those options.

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  • Lynette’s mission is to translate financial noise into understandable language and enable educated, independent choices. All her work is fact and evidence based and she shares these tools openly. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community to survive and thrive through any financial crisis.

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