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Title: Why Republicans Aren’t Mentioning the Real Cause of Rising Prices at the Gas Pump
Source:
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URL Source: http://truth-out.org/opinion/item/7 ... -rising-prices-at-the-gas-pump
Published: Mar 16, 2012
Author: Robert Reich
Post Date: 2012-03-21 12:39:30 by mininggold
Keywords: None
Views: 2223
Comments: 13
Why Republicans Aren’t Mentioning the Real Cause of Rising Prices at the Gas Pump Friday, 16 March 2012 10:30 By Robert Reich, Robert Reich's Blog | Op-Ed Gas prices continue to rise, which is finally giving Republicans an issue. Mitt Romney is demanding the President open up more domestic drilling; the super PAC behind Rick Santorum just released a new ad in Louisiana blasting the President on gas prices; and the GOP is attacking the White House on the Keystone XL Pipeline. But the rise in gas prices has almost nothing to do with energy policy. It has everything to do with America’s continuing failure to adequately regulate Wall Street. But don’t hold your breath waiting for Republicans to tell the truth. As I’ve noted before, oil supplies aren’t being squeezed. Over 80 percent of America’s energy needs are now being satisfied by domestic supplies. In fact, we’re starting to become an energy exporter. Demand for oil isn’t rising in any event. Demand is down in the U.S. compared to last year at this time, and global demand is still moderate given the economic slowdowns in Europe and China. But Wall Street is betting on higher oil prices in the future — and that betting is causing prices to rise. The Street is laying odds that unrest in Syria will spill over into other countries or that tensions with Iran will affect the Persian Gulf, and that global demand will pick up as American consumers bounce back to life. These bets are pushing up oil prices because Wall Street firms and other big financial players now dominate oil trading. Financial speculators historically accounted for about 30 percent of oil contracts, producers and end users for about 70 percent. But today speculators account for 64 percent of all contracts. Bart Chilton, a commissioner at the Commodity Futures Trading Commission — the federal agency that regulates trading in oil futures, among other commodities — warns that too few financial players control too much of the oil market. This allows them to push oil prices higher and higher — not only on the basis of their expectations about the future but also expectations about how high other speculators will drive the price. In other words, a relatively few players with very deep pockets are placing huge bets on oil — and you’re paying. Chilton estimates that drivers of small cars like Honda Civics are paying an extra $7.30 every time they fill up — and that money is going into the pockets of Wall Street speculators. Drivers of larger vehicles like the Ford Explorer are paying speculators $10.41 when they fill up. Funny, but I don’t hear Republicans rail against Wall Street speculators. Could this have anything to do with the fact that hedge funds and money managers are bankrolling the GOP as never before? Wall Street isn’t bankrolling Democrats nearly as much this time around because the Street is still smarting from the Dodd-Frank Wall Street reform law pushed by the Democrats, and from the president’s offhand remark in 2010 calling the denizens of the Street “fat cats.” The Commodity Futures Trading Commission is trying to limit how much speculators can bet in oil futures — a power it was given by Dodd-Frank. It issued a rule in October, but it won’t take effect for another year. Meanwhile, Wall Street has gone to court to stop the rule. It’s already won a stay. As rising gas prices start wagging the election-year dog, the President should let America know what’s really causing prices to rise.
Poster Comment: Here's a comment from a poster that seems to have a clue: Goodwrench Over 60% of CURRENT oil leases in the U.S. are idle. Production is at an all-time high and consumption is at a 10 year low. Supply & demand don't work when you allow speculators to manipulate prices without having to actually take delivery of the fuel they "buy". Increasing the percentage of actual capital required to purchase a contract (you don't have to present the funds to pay for your oil contract) and enforcing trading rules would do a lot to curb price manipulation. PS. I tried to find a source that puts it in such simple terms that even CZ can understand it.
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#1. To: mininggold (#0)
Sounds like a bubble.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
CZ has drunk the Kool-Aid and is now a happy, willing sacrifice to the god of the free market.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
LOL! You libTURDS are F'ing INSANE! You think that if you SAY it it makes it TRUE! LOL! You gibbering useful FOOLS cannot repeal the LAW of supply and demand. LOL! The world and the USA are awash in OIL. It's there just waiting for us to get it. We could drive prices down at the pump just by saying that we were opening all of AMERICA to responsible development. YOUR messiah "king" obammy has THIS gas price INCREASE of about 100% completely in his lap. He had STOPPED ALL development and production in the Gulf, he has stopped all exploration, he has increased the complexity and expense of exploration AND development. IT'S 100% your FAILED messiah "king" obammy's fault. EVERY time every AMERICAN gets raped at the pump all they need to remember is how YOUR messiah "king" obammy has stated that he WANTS HIGHER GAS PRICES, that YOUR messiah "king" obammy has ACTED on purpose to drive gas prices up. The FAULT of increasing GAS PRICES is 100% YOUR demonRAT partee and messiah "king" obammy's fault. Go ahead TRY to spin that bitches. Btw bitches, this is ALL going to end up being sold as IF YOU ARE AGAINST the re-election of the messiah "king" obammy you are a RACIST. We all know where this is going. YOUR messiah "king" sure can't run on his record can he bitches?
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Just an observation, but with so many fine examples of conservative, Christian 'manhood', such as yourself strutting their finest, it looks like Obama won't have a thing to worry about.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
That's a lie according to Obozo.... He says we use 20% of the worlds oil supply but we only produce 2% of it!!!!! You guys really need to get your stories straight..... (shaking head slowly back and forth)....
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
The REAL reason: Heal me, O Lord, and I shall be healed; Save me, and I shall be saved, For You are my praise. Jeremiah 17:14
Have Democrats taken a vow of silence on this issue? We do know that Wall St. is stuffing donations into Obama's pocket at this very moment.
We do know that Wall St. is stuffing donations into Obama's pocket at this very moment. How would I know? That's what Wall Street does.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
You guys really need to get your stories straight..... (shaking head slowly back and forth).... I just posted the article to illustrate a concept you seem to have a problem understanding. Some of the comments, of which many are critical, are rather well thought out too. Too bad you didn't read them.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
That's what Wall Street does. Where's the wealth spread to his loyal komrads? He's no better than a greedy Capitalist!
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
It's going to the usual suspects.... advertising agencies.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
Some of the comments, of which many are critical, are rather well thought out too. Too bad you didn't read them. I did read the article and because it left out certain obvious reasons behind the pricing of oil I just decided to make fun of it instead..... The price of oil is decided by 3 international oil markets, not just Wall Street.... And it also forgot to mention the most obvious reasons, supply and demand!!!!! The world revolves around supply and demand, if one supplier/market is too expensive then you go to another and get it cheaper.... just like if you were shopping for clothes at you local mall..... why buy a shirt at Macys and pay $60 for it when you can go to JC Pennys and buy the same shirt for $40.... Besides that when somebody says something needs to be regulated most of the time that's only because THEY want to control it, instead of letting who is currently controlling it control it....
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
LOL! You simpering libTURD hag, this is about how GAS PRICES have increased 100% during your messiah 'king" obammy's regime, AND how he and all of his TOOLS have stated in public many times that their GOAL is HIGHER GAS PRICES, and how during his time he has done everything that he can to make GAS PRICES go higher you simpering libTURD whore. GAS PRICES are completely YOUR messiah "king" obammy and his wacky gang of demonRATS responsibility HAG. MY manhood hasn't F all to do with it hag. As if a slack jawed drooling fence post stoopid skank libTURD gash such as YOU has ANY standing, in any way, to judge any man's "manhood". LOL! You are truly a pitiful little libTURD whore. Btw whore, you said you had me on ignore, what was that? Another LIE whore? CaCk Pi$$ off. LMAO!
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Bart Chilton, a commissioner at the Commodity Futures Trading Commission — the federal agency that regulates trading in oil futures, among other commodities — warns that too few financial players control too much of the oil market. This allows them to push oil prices higher and higher — not only on the basis of their expectations about the future but also expectations about how high other speculators will drive the price.
#2. To: mininggold, CZ82 (#0)
PS. I tried to find a source that puts it in such simple terms that even CZ can understand it.
#3. To: mininggold (#0)
But the rise in gas prices has almost nothing to do with energy policy.
#4. To: Mad Dog (#3)
....................................Attempting to retrieve something that had blown into the water, 41-year old Simon Burgess slipped and fell into a 3 1/2 foot-deep pond. He then suffered a seizure. His body, lying motionless and face down in the water, was spotted at 12:15pm by a witness who immediately called 999 emergency services (like 911).
#5. To: mininggold (#0)
Over 80 percent of America’s energy needs are now being satisfied by domestic supplies.
#6. To: mininggold (#0)
Why Republicans Aren’t Mentioning the Real Cause of Rising Prices at the Gas Pump
#7. To: mininggold (#4)
#8. To: Thunderbird (#7)
Have Democrats taken a vow of silence on this issue?
#9. To: CZ82 (#5)
(Edited)
That's a lie according to Obozo.... He says we use 20% of the worlds oil supply but we only produce 2% of it!!!!!
#10. To: mininggold, *Liberal Rehab Staff* (#8)
(Edited)
Wall St. is stuffing donations into Obama's pocket at this very moment
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#11. To: hondo68 (#10)
Where's the wealth spread to his loyal komrads? He's no better than a greedy Capitalist!
#12. To: mininggold (#9)
I just posted the article to illustrate a concept you seem to have a problem understanding.
#13. To: mininggold (#4)
Just an observation, but with so many fine examples of conservative, Christian 'manhood', such as yourself strutting their finest, it looks like Obama won't have a thing to worry about.
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