Gov't moves to limit speculative commodity trades

AP ^ | January 13, 2011 | Marcy Gordon

[george76]

Federal regulators took a step Thursday to limit speculative trading of oil, food products and other commodities...The Commodity Futures Trading Commission proposed limiting the volume of futures contracts that financial investors can trade for 28 commodities. The panel voted 4-1 to advance the rule, which opens it to public comment.

Lawmakers had proposed establishing limits on speculative trading of commodities as part of the financial overhaul law enacted last summer. But they left the details of the rules to regulators to sort out.

[KoRn]

In the case of the stuff we use to live off of, such as oil, corn, grains. They should be made to take physical delivery.

[Uncle Ike]

” But they left the details of the rules to regulators to sort out. “

To be inscribed on the tombstone of Democracy and Freedom....

[muir_redwoods]

I wonder what part of the constitution allows congress to prohibit adults from making contractual agreements involving perfectly legal products.

[Para-Ord.45]

THEY are destroying the dollar WHICH is driving the CRB index straight UP SO now THEY MUST control prices !
If THEY do not INFLATION skyrockets.

[John Valentine]

Why? Futures trading serves a number of legitimate purposes that certainly would not require any buyer taking physical delivery. Whatever you may think of commodity traders, the whole trade is voluntary and is made up of willing traders on both sides of every trade.

No good propose is ever served by busybodies from the government interfering with lawful trade between willing buyers and sellers.

[GeronL]

Hugo Chavez, is that you?

[bill1952]

That is insane.
Without futures there would be virtually no long term farming at all.

It is how farmers get money for seed and equipment now to plant in years to come, not to mention a similar effect on every link in the chain of production, storage, and delivery.

[ThirdMate]

Why?

[Osage Orange]

Then make all the middle man stores in America....”take delivery” also.

[Osage Orange]

Good post.......

[GeronL]

They really need to stop leaving the details to unelected bureaucrats to fill in the blanks.

[Cicero]

Very dumb idea. Just check out the list of Senators who are suggesting this. The lefiest of the left and the dumbest of the dumb.

If they cripple the commodities markets, they will just move elsewhere, and weaken the dollar even further in the process.

[KoRn]

Yeah, probably a stupid idea on my part. Was just musing.

I’ll go back to sleep now. lol

[taxtruth]

The us hovernment/government has destroyed everything it touched.

[Leisler]

What are you, a drunk?

( I’ll have what he’s drinking. )

[pyx]

An example of buying commodity futures, such as foods.

For whatever reasons, I am convinced that the weather in Y and Z states will be so cold and dry next year that they will end up not having a bumper crop of ABC.

Therefore because ABC will not be as abundant next year, it will be more expensive for people to buy. I am speculating $X dollars of my own money that the cost to buy ABC will be $D dollars.

And The Commodity Futures Trading Commission want to regulate these investments.

[_Jim]

Why? Futures trading serves a number of legitimate purposes that ...

Sub-penny moves by banks/hedge funds running HFT (high-frequency trading) platforms?

Bring back open-outcry pits ...

[GeronL]

nope, but I just act that way sometimes

[Presbyterian Reporter]

When CFTC limits speculation, they are admitting that speculating is profitable.

2011 looks to be the start of mega-inflation. The commodity prices are heading higher and the bond prices are heading lower.

I believe we can thank Obama and his Stimulus money that has primed the inflation pump.