An Easy Trillion Dollars To Stimulate The Economy
An Easy Trillion Dollars To Stimulate The Economy
We all paid more than five dollars a gallon for gasoline and home heating oil recently. We have seen wild swings in the price of crude oil in the futures market. So much money was drawn from the American consumer to pay for the excessive prices of gasoline and home heating oil that the consumers had little to spend on other things. Many American citizens bought the gasoline or home heating oil on credit because they did not have the cash and are still liable for the climbing debt. The excessive cost of crude oil was one of the major causes of the current economic failures in America and the world.
Initially, I believed that OPEC was at fault for raising the price of crude oil excessively, but I was wrong. the I thought the rebels in Nigeria were the cause. The I blamed the big oil companies. But I was wrong.
The crude oil futures market is a "free" market that is the cause. The American federal government does not supervise the trading or set any rules in this market. The market is a free for all where the participants trade up the price of oil where the consumers pay the price. The traders operate on a 10% margin which is unheard of in any other market.this means that a trader with one million dollars can trade 10 million dollars on margin. Someone with a million dollars and the additional margin recently manipulated the price of a barrel of crude up by $10.
Right now they trade on virtual oil. They trade more oil than what exists. If it was a friendly game of Monopoly no one would care, but this is real life. No one should be able to trade more of something than what exists.
The purpose of each commodity market was to stabilize prices for the producers and the purchasers of the commodity. One would expect in the oil futures market that the sellers would be mainly the drillers pumping crude oil out of the ground and the buyers to be primarily the refineries that need the crude to produce gasoline, home heating oil, diesel, jet fuel and other related products. But here are disinterested parties in the oil futures market such as teachers unions, hedge funds, and others more interested in making a killing that to enable a market with stable prices.
The American federal government should set better trading rules and governance in the oil futures market and the other commodity markets. the Bernie Madoff swindlers in the oil futures market should be investigated and prosecuted. Why should the swindler traders soak the consumers for more than a trillion dollars enriching only themselves and putting hundreds of million Americans in financial peril.
If the oil futures market and other commodity markets had rules and governance and prosecution the prices of the commodities such as crude oil will stabilize. I would bet that the price of crude oil would stabilize around $2.00 per gallon stabilizing also the prices of gasoline, diesel, home heating oil, jet fuel and the rest of the products made from crude.
If the American consumers could have lower prices on gasoline and home heating oil then there would be lots of money in each household to spend on consumer items and then the economy would improve.
We all paid more than five dollars a gallon for gasoline and home heating oil recently. We have seen wild swings in the price of crude oil in the futures market. So much money was drawn from the American consumer to pay for the excessive prices of gasoline and home heating oil that the consumers had little to spend on other things. Many American citizens bought the gasoline or home heating oil on credit because they did not have the cash and are still liable for the climbing debt. The excessive cost of crude oil was one of the major causes of the current economic failures in America and the world.
Initially, I believed that OPEC was at fault for raising the price of crude oil excessively, but I was wrong. the I thought the rebels in Nigeria were the cause. The I blamed the big oil companies. But I was wrong.
The crude oil futures market is a "free" market that is the cause. The American federal government does not supervise the trading or set any rules in this market. The market is a free for all where the participants trade up the price of oil where the consumers pay the price. The traders operate on a 10% margin which is unheard of in any other market.this means that a trader with one million dollars can trade 10 million dollars on margin. Someone with a million dollars and the additional margin recently manipulated the price of a barrel of crude up by $10.
Right now they trade on virtual oil. They trade more oil than what exists. If it was a friendly game of Monopoly no one would care, but this is real life. No one should be able to trade more of something than what exists.
The purpose of each commodity market was to stabilize prices for the producers and the purchasers of the commodity. One would expect in the oil futures market that the sellers would be mainly the drillers pumping crude oil out of the ground and the buyers to be primarily the refineries that need the crude to produce gasoline, home heating oil, diesel, jet fuel and other related products. But here are disinterested parties in the oil futures market such as teachers unions, hedge funds, and others more interested in making a killing that to enable a market with stable prices.
The American federal government should set better trading rules and governance in the oil futures market and the other commodity markets. the Bernie Madoff swindlers in the oil futures market should be investigated and prosecuted. Why should the swindler traders soak the consumers for more than a trillion dollars enriching only themselves and putting hundreds of million Americans in financial peril.
If the oil futures market and other commodity markets had rules and governance and prosecution the prices of the commodities such as crude oil will stabilize. I would bet that the price of crude oil would stabilize around $2.00 per gallon stabilizing also the prices of gasoline, diesel, home heating oil, jet fuel and the rest of the products made from crude.
If the American consumers could have lower prices on gasoline and home heating oil then there would be lots of money in each household to spend on consumer items and then the economy would improve.
posted by God Bless America - Bob at 11:59 AM
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