Posted on 06/10/2011 1:45:28 PM PDT by Nachum
The CROOKS (allegedly, just indictments so far) at the NYMEX are running a scam and they have NO INTENTION WHATSOEVER of accepting delivery of even 1/10th of the 367M barrels they had as open contracts last week. In fact, Wednesday (June 8) they traded their contracts 454,043 times - isn't that amazing? It's a 123% daily churn rate! Of course, it's easy to churn 454M barrels of crude because the only sucker that ends up paying for all those fees is YOU, the end consumer of crude. All those fees are passed on to you as part of the price of oil.
Don't forget to thank Uncle Lloyd and Uncle Jamie (who was whining to Uncle Ben about how stopping him from screwing over taxpayers is bad for the economy), when you fill up your tank, as Exxon's CEO Rex Tillerson told us last week, without those speculators, a barrel of oil would be $70. You can see Jamie sweating as President Obama said a Justice Department probe will examine the role of “traders and speculators” in oil markets and how they contribute to high gas prices. “The attorney general’s putting together a team whose job it us to root out any cases of fraud or manipulation in the oil markets that might affect gas prices, and that includes the role of traders and speculators,” Obama said April 21st in Reno, Nevada. “We are going to make sure that no one is taking advantage of American consumers for their own short-term gain.”
The group, which includes representatives of federal agencies and state attorneys general, will check for fraud, collusion or misrepresentation at the retail and wholesale level, the Justice Department said in a statement last week.
(Excerpt) Read more at zerohedge.com ...
ping
Watch oil prices in the fall. Also, have a look at what’s been done with currencies after defaults.
If they intervene they add just another distortion which will screw things up.
It's true there's no shortage of oil. Eventually the law of supply will kick in.
The surest way to accelerate that bubble pop is to DO NOTHING.
The second best choice for those who simply cannot abide natural forces is to tariff every bbl of imported crude and imported finished product by $25/bbl and watch the rats scramble for the exits.
In fact, I'd bet such a tariff would drop the price of oil to $60/bbl.
But ... but ... I thought the speculators were blameless ...
so, in a nutshell I’m a paychecker?
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