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.
"I know no safe depository of the ultimate powers
of society but the people themselves; and
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
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