UNDERSTANDING WEATHER DERIVATIVES

I will begin by admitting that I know absolutely nothing about weather derivatives but I am beginning to realize that this is a subject we desperately need to understand. The ability to manipulate the weather has advanced to such a point that this technology has enabled a whole new class of warfare and betting on the stock market. Utilizing weather warfare is the perfect .... almost secret ....way to take control of a country. Through this advanced technology we can now cause droughts, floods, hurricanes, tornadoes, snowstorms, typhoons, lightening, and even earthquakes. Crops can be destroyed and an economy destabilized. Groups of people are also often relocated and many never return to the desired area. This happened with hurricane Katrina. Who or what then does the rebuilding and who profits from it?

We need to look at who or what lends the money to specific countries for the purpose of rebuilding. What happens when a specific country incurs one disaster after another, borrows more money until it can no longer pay back their debt? Is this country then basically owned by the World Bank or International Monetary Fund? Would it be a similar situation to when a mortgage on a house can no longer be paid and the bank then takes ownership of the house? Another facet to consider is the plea for donations to these countries or "victims" of shootings and other disasters.Where does the money really go? Let's look and see who belongs to these international financial groups and what their connections are.

On top of all this we now have weather derivatives where entities/people can bet on the weather. Now, imagine the money to be made if an institution can create the desired weather to make money from these derivatives. I'm trying to figure out if a particular country would even bet on a certain weather condition, then cause that weather condition in their own country to make money with these derivatives..... kind of like white lightening ...burning your own house and collecting the insurance. I could be way off base because I do not totally understand how these derivatives operate. I just might have to buy the book above to better understand....however, my house is overflowing with books so maybe a reader could post a really simple explanation with an example that we can share with the readers of this blog.

Now...I hope that by bringing attention to this subject that I do not encourage more dishonest trading. Those who are complicit in these apparent weather wars must not be very farsighted. Participating in this type of thing only escalates weather warfare in general and ruins the environment and economy for everyone in the long run, including the families of the perpetrators.