Bull Excrement
Maria Cantwell, unfortunately my senator from Washington state, is now pushing some bill trying to scapegoat speculators.
She has been one of the biggest opponents to new drilling in the US for years. She is also one of the biggest receivers of campaign contributions by the Sierra Club.
She was even quoted saying something along the lines that that any overshore drilling in Washington state would be done over her dead body. She’s constantly butting into Alaska’s politics as well trying to block any new drilling there as well.
Despite their dismal reputation, the oil speculators provide a vital service. They help airlines and other big oil consumers to hedge against rising prices, and so to reduce risk—a massive boon amid the economic turmoil. By the same token, they provide oil producers with more predictable future revenues, and so allow them to expand more confidently and borrow more cheaply. That, in turn, should help to lower the price of oil in the long run.
First oil speculators have no effect on oil prices, then oil speculators do have an effect on oil prices; before I buy "The Economist" theory they need to determine which position they are taking.
...agreed. We can do better without clinging to wishful thinking about cheap freight fuel and continuation of the recent trade paradigm.
This was previously posted here:
http://www.freerepublic.com/focus/f-news/2040579/posts
It was worth posting again. Anyone interested in this topic would likely find the comments on the earlier version interesting and even enlightening.
Is this true?
Total and complete BS.
The Bum Rap on Biofuels
American Thinker | 5-13-08 | Herbert Meyer
Posted on 05/14/2008 3:59:06 AM PDT by Renfield
http://www.freerepublic.com/focus/f-news/2015711/posts
Campaign to vilify ethanol revealed
ethanol producer Magazine | May 16, 2008 | By Kris Bevill
Posted on 05/17/2008 9:22:13 AM PDT by Kevin J waldroup
http://www.freerepublic.com/focus/f-news/2017389/posts
btrl
Just received this one today:
AN OPEN LETTER
TO ALL AIRLINE CUSTOMERS
From 12 Airline CEOs.
Hello {Mr. Airline Customer},
Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.
For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers.
Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.
Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.
Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.
The nation needs to pull together to reform the oil markets and solve this growing problem.
We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com.
bttt
Despite their dismal reputation, the oil speculators provide a vital service
How much have you made off speculating so far?