Speculators are sending prices to levels never seen before. Is it profiteering or an essential way to ensure supply?

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On Fri, 16 May 2008 12:50:56 -0700, Joe wrote:

Yup. When money isn't worth spit prices are gonna be very high. And when when it is possible for just a few people to buy up 10% of the oil flow for a given month then you will have what we have right now. Too much money in the hands of the privileged few. The regulation of this particular commodity is absolutely essential to insure that consolidation into hands accountable only to themselves cannot occur. That the Saudis have a very large share of the oil supply is bad enough. We do not need the "cornering of the market" adding to the problem.
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That's our capitalist system at work. The problem is that any kind of government intervention, like price controls, over taxation, tariffs, and so on NEVER works. We can nibble at the edges and should do it but blatant action that smacks of a controlled economy will backfire big time. That's the main problem in the Communist and Socialist countries and the main reason they failed. Look at China. Nixon tried price controls and that went over like a lead balloon.
The only long term answer is competition from alternative energy. Sooner or later it has to be done in any case because petroleum is finite. So, why not now? Support efforts to develop alternative energy, support biofuels and other alternatives. It's the ONLY way we can break the yoke.
Speculators have moved into oil, food and other commodities because stocks and real estate have been poor investments recently. Much of that has to do with the value of the dollar which is caused by excessive borrowing to pay for two wars. Everything has consequences. Government spending without proper taxation is part of the problem. If the US gets it's fiscal house in order then the speculators will move money back into traditional investments and oil, food and so on will stabilize.
Don't vote republican, they have no clue how to run an economy as we can plainly see.
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