While I agree enforcement of existing laws and modifications of other regs need to be done as well (something I doubt we’ll honestly see sadly). I don’t agree wholey that the money will all move to different markets. Surely some will, but if you raise the capital gain rate on such trades as well, guess what? Doesn’t matter where you made your profits, you are US based, you pay the tax... which is why the need is for raising of margin as well as increased capital gains rate on energy trades.
You would raise taxes both on hedgers and on small specs, NEITHER of whom are contributing to the problem. Until you limit your notions to suspending IRS Section 1056 for big specs (Form 50 filers) only, you'll get no support from me.
Also, don't kid yourself m'friend. I've known personally half a dozen of these hot-money fund managers, and they'll liquidate a position in one country and re-establish the same or an equivalent position in a different country in less time than it takes to drink a cup of coffee. And they'll do it even faster if they'v a positive economic incentive -- such as vastly higher margins -- to do so. And they'll do it TO A MAN, because their performance reviews depend considerably on not letting their competitors get the jump on them.
To think otherwise is perhaps pleasant, but it's a bloody pipe dream. That ain't the way THIS world works, mate.