Monday, April 25, 2011

Obama wants US citizens to pay the price though oil "reparations"

Wall Street speculators drive up the price of gasoline, diesel and jet fuel by buying and selling oil with no intention of ever using it. (The wall street speculators are institutional investors, (corporate and government pension funds, sovereign wealth funds and university endowments etc.)

(Obama and the democrates have made the oil speculation profitable by not allowing oil drilling in the US because of their determination to destroy the US economy. Obama uses the epa to "speread the wealth around" though regulations that stop oil production. Obama uses the power of the federal government to increase the cost of food and everything tied to the price of oil and gas.

The US government allows unregulated oil speculation through ICE. Oil Futures Speculation Will Destroy World Economy. The US government allows this to continue to happen on purpose.

This is why the price of gas goes up. Obama wants US citizens to pay the price though oil "reparations".)
Story Reports

Why has oil speculation increased in recent years?

Institutional investors (corporate and government pension funds, sovereign wealth funds and university endowments) have poured billions of dollars into the commodities markets. These speculative trades have helped to drive up the price oil because the majority of new contracts are betting on increases, rather than decreases. In effect, this swell in "artificial demand" for oil is upsetting the balance between physical supply and demand and, once again, fueling a price "bubble."

What is an index speculator?

An index speculator is a financial player, such as a corporate or government pension fund, sovereign wealth fund, university endowments or other investor, that buys (invests in) the 25 commodities that compose the Standard & Poor's-Goldman Sachs Commodity Index (S&P GSCI) and/or the Dow Jones-AIG Commodity Index (DJAIG). The value of the index depends on how well the commodities being "tracked" by the index perform in the futures markets.

Should institutional investors be prohibited (or limited) from investing in commodities futures?

The effects of institutional investors have been so great that they have actually altered the price discovery dynamics of today's futures markets. Index speculators buy without sensitivity for the supply and demand of individual commodities, which undermines the price discovery function of the markets. Active trading strategies should be allowed, but they need to be done in a transparent and limited way.

What are position limits?

Currently, a handful of foreign exchanges, most notably the London Intercontinental Exchange (ICE), are trading energy contracts that are identical to those traded in the United States, but are not following U.S. regulations because they claim they are exempt from U.S. law. These exemptions should not exist because they are trading U.S. commodities using terminals based in the United States.

What are swaps trades?

Swaps trades (also known as "over the counter" trades) are commodities transactions that take place between two separate parties outside of the traditional markets. Since they do not take place within regulated markets such as NYMEX, these often secret trades take place without regulatory oversight. We believe these trades should be transparent and under the same rules as traditional markets, so that no price manipulation takes place.

‘Perhaps 60% of today’s oil price is pure speculation’

Oil Futures Speculation Will Destroy World Economy

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