To have the shameless Mr.Newt blame speculators for this price escalation made me want to puke. Nothing worse than seeing someone you admired show their true colors. First embracing the charade of man made global warming and now blaming speculators.
Sorry but Newt can be believed only in areas of his true expertise which appears to be adultery.
Three solutions:
1. The price of oil is being BY FEAR (of future price hikes) in turn being EXAGERATED BY the speculators who will only make money IF the future price of oil continues to rise.
Today's exaggerated prices are NOT based by the amount of oil used, nor by the amount available. India's current use is higher than 5 years ago, Chine's is higher than four years ago.
BUT NEITHER country's use (nor the US’s use, nor the world's total use), has doubled in the past two years. Supplies are limited by excessive environmental opposition, but are substantially the same as 10 years ago. Prices are of course higher, rising to something equal to about 2.50 - 2.75 per gallon.
BUT NOT 4.50 per gallon!
Tell me why ANYBODY other those who will use the future oil they are “purchasing” should be allowed to manipulate the futures market. Tell me WHY outside trust funds and outside hedge funds and international common funds (controlled by who ???? in this election season) and for what reason should be able to manipulate everyday oil prices USING “rumors” and “statements” and “warnings” being “randomly” generated by interests who wish to destroy the United States?
Tell me WHY futures “investors can manipulate the prices by bidding UP the hour-to-hour/minute-by-minute oil prices based on new rumors with less than a 5% investment.
Remember, ONLY the headline is needed. Not the oil itself.
Oil futures markets are required. For oil companies, railroads, and industries. Not for market manipulators who can destroy the economy by multiplying 5% “investments” to move 95% prices.
Wholesalers/Speculators provide an invaluable service by spreading the risk against high prices. At these levels nobody can influence the prices. Its completely Supply/Demand driven.
Pray for W and Our Troops
Rush argues the utility of textbook speculation and speculators are blameless -- they are just doing what a good businessman does.
So who's lying? (spinning, if you wish) And why?
So how does hedging against the dollar affect oil price?
I just heard (a delayed) broadcast of Roger Hedgecock who had a caller with the experience to answer the question -- which the caller did but Hedgecock had no idea of what "bid up" means and terminated the call because "the caller wouldn't answer the question."
My pixels ain't too bright here but basically I believe that means there are more buyers than sellers and the buyers are desperate to hedge against the dollar and also do something with their billions now that real estate (yesterday's bubble) crashed.
So what's wrong with "Oil prices are rising along with a host of commodities that are enticing speculators seeking hedges against a weakening dollar" -- and lots of competition to buy that hedge?