Sunday, October 23, 2011

Oil prices. Too high? No, too low.

In the article quoted below. Senator Sanders correctly points out that the American people are being fleeced by commodity gambling. No matter which gambler wins, the people lose. But we need to ask ourselves why such high prices are plausible enough to make such a game possible. The fact is we are on the downward side of oil. The long emergency is well underway. While there will be great fluctuation, the only way for oil price is up. That may be expressed in terms of price, subsidy, externalities, or wars. Or, of course, human die-off.
What Wall Street doesn’t want us to know about oil prices - Newsroom: Bernie Sanders - U.S. Senator for Vermont: "A June 2 article in the Wall Street Journal said it all: "Wall Street is tapping a real gusher in 2011, as heightened volatility and higher prices of oil and other raw materials boost banks' profits." ExxonMobil Chairman Rex Tillerson, testifying before a Senate panel this year, said that excessive speculation may have increased oil prices by as much as 40 percent. Delta Air Lines general counsel Richard Hirst wrote to federal regulators in December that "the speculative bubble in oil prices has concrete detrimental consequences for the real economy." An American Trucking Association vice president, Richard Moskowitz, said, "Excessive speculation has caused dramatic increases in the price of crude oil, which harms end-users like America's trucking industry.""

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