Obama Vows Crackdown on Energy Speculators

Obama Vows Crackdown on Energy Speculators

ap.google.com

Sen. Barack Obama on Sunday said as president he would strengthen government oversight of energy traders he blames in large part for the skyrocketing price of oil.

The Democratic candidate's campaign singled out the so-called "Enron loophole" for allowing speculators to run up the cost of fuel by operating outside federal regulation. Oil closed near $135 a barrel on Friday — almost double the price a year ago.

"My plan fully closes the Enron loophole and restores commonsense regulation as part

(visit the link for the full news article)

FINALLY!!! Somebody in Washington who actually even mentions the "Enron Loophole" and knows it needs to be fixed!

But, who was this guy who put this "Enron Loophole" into the bill that allowed speculators to manipulate the price of oil and where is he NOW?

Well, this is what the Obama camp says,

Obama's campaign blamed the loophole on former Sen. Phil Gramm, a Texas Republican who serves as Republican candidate Sen. John McCain's co-chairman and economic adviser. The Obama campaign accused Gramm of inserting a provision into a bill in late 2000 "at the behest of Enron lobbyists" that exempted some energy traders from government oversight.

Of course the McCain camp and Gramm deny this.

But if he IS the one who put the "Enron Loophole" in the bill, he sure is a bad choice for a presidetial hopeful to use as an adviser!

In my book, IF Gramm actually was the one who put the "loophole" in the bill, he is nothing more than a crook! He was paid off (lobbied) by a company (or group) to put a "loophole" into a bill that would allow them to manipulate the price of oil, sending the price of oil skyrocketing, and take even more money out of our pockets just so they could make a ton of money at our expense!

And no wonder McCain was agreeing so adamantly with Bush that the high price of oil was caused by supply & demand and that we need more refineries and need to open more oil fields! Look who was advising him!

He (Gramm) wouldn't be telling McCain the real reason gas prices are so high was the "Enron Loophole" that HE put in a bill!

ap.google.com
(visit the link for the full news article)

[edit on 6/22/2008 by Keyhole]

[edit on 6/22/2008 by Keyhole]

I can only hope he's serious about this, as I understand it the speculation is what really drives up the price of gas. Obama might just be able to save our economy.

I hope this is one statement he moves on quickly, the only problem is the speculators are going to be throwing money everywhere lobbying in Congress to try prevent their "honey (loop)hole" from closing up!

This is one huge reason why lobbying should only be allowed by non-profit organizations!

[edit on 6/22/2008 by Keyhole]

Obama's lieing as usual. It is not the root cause (if at all) of any higher Gas prices. It is a global thing, not just US based. This should tell you something that is bigger than a US problem (i.e. China's booming economy placing higher demand on current supply chains).

Obama breaks from Public Funding (A pledge he first signed), changes the Presidential Seal removing the Constitution Shield and comes up with this lame "fix it" solution?

I'm still perplexed as how you guys are still supporting this guy.

reply to post by jetxnet

If Obama is lieing, then so are many others.

Market fundamentals such as strong oil demand in China and India, a weak U.S. dollar and geopolitical tensions in big oil producing countries "provide the best explanation for crude oil price increases," Commodity Futures Trading Commission (CFTC) Chief Economist Jeffrey Harris told a Senate panel's hearing.

Harris said his agency, which regulates futures markets, has seen "little evidence that changes in speculative positions are systematically driving up crude oil prices."

Many senators on the Energy and Natural Resources Committee disagreed, saying hedge funds and other speculators had pushed up oil prices.

"There is an orgy of speculation in the futures markets," said Democrat Byron Dorgan. "This is a 24-hour casino with unbelievable speculation."

Congress told speculators not driving up oil price

Bold emphasis added.

I don't know myself one way or another, and don't know what this loophole is, but my guess is you don't either. There is already a bill trying to close it, and if they are unsuccessful, then Obama says he will see to having it removed when he is elected.

Why must he wait to push this legislation through until he's President? Why not start the ball to rolling now? If he did, I'd even consider voting for him.

Why must we suffer under the burden of outrageous gas prices until the presidential race is over? He has the ability to put such legislation on the tables now, if he truly has a desire to do so. Prove I'm wrong about you Obama, and that you're not just another lying politician.


[edit on 6/22/08 by LLoyd45]

Want to stop the speculators? Give them a reason to believe oil will drop in price. What to know how to do that? Drill more oil right here in America!

It's all about supply and demand. The #1 law of economics.

That is the bad thing about liberals. They always look for government to come in and save people.

Ronald Reagan once said. "The most terrifying words in the English language are: I'm from the government and I'm here to help."

Originally posted by jetxnet
Obama's lieing as usual. It is not the root cause (if at all) of any higher Gas prices. It is a global thing, not just US based. This should tell you something that is bigger than a US problem (i.e. China's booming economy placing higher demand on current supply chains).

There is PLENTY of oil right now!

Their is no oil/gas shortages to drive up the price!

Where do you think the prices for a barrel of oil are made?

The price of oil is set in the stock markets in New York and London for the whole world! The Enron Loophole allows speculators now to trade unregulated in these markets!

This unregulated electronic trading and the failing dollar are the true culprits of the rising cost of gas!

Here's a thread where all this was discussed.

‘Perhaps 60% of Today’s Oil Price is Pure Speculation’

*yawn*
Easier said than done and....

Originally posted by LLoyd45
Why must he wait to push this legislation through until he's President? Why not start the ball to rolling now?

EXACTLY.

He is still a member of the Senate. YOU make the laws! Do something, don't just talk.

reply to post by Keyhole


It's too late for that and Obama knows it as well. Oil Speculators have already tasted the smell of crude and although they hate the smell, they just love to swim in it. Right now it's an Oil Frenzy for speculators, they are making mare money than governments, a rich bonanza on the back of sheepheads (Taxpayers) who funded them with their taxdollars to fetch the oil @ $10 per barrel, and they are charging $150 per barrel.....WOW. Who are these speculators working for, maybe Excon or Shell fronts

Originally posted by Keyhole
FINALLY!!! Somebody in Washington who actually even mentions the "Enron Loophole" and knows it needs to be fixed!

I'm taking a wild guess that neither you nor Obama have any idea what the "Enron Loophole" is or how it might possibly affect oil prices.

"Speculators" are now the bad guys, and yet Obama hired James Johnson, co-Chairman of speculation company Perseus LLC, to vet his VP choice. I guess some speculators are good guys and some are bad guys, right?

This is just more of the same old platitudes that Obama is becoming legendary for.

Can anybody try to explain how speculators cause the price of oil to go up? This is just idiotic. If it were that easy for speculators to bid up the price of a commodity they wouldn't need to choose oil. They could do it to any commodity and make money.

The reason the "speculators" are long oil is because of fundamental supply and demand issues. They are betting that the price of oil will be higher in the future because the demand for oil is growing from China and India while the supply is staying constant. This isn't rocket science people.

Good points, and you cannot expect 1 Billion Chinese people to have the same quality of life you do in America.

You are seeing Bill Clinton and the NWOers' building of the Chinese economy through giving them everything they need hand over fist and thus creating a large trade deficit due to unfair trade practices by the PRC.

More and more Chinese people are now buying vehicles no longer riding bikes. These vehicles need Gas, and Oil creates Gas!

It is a world global economic problem in the EU, USA, Britain and everywhere.

Obama cannot solve this global crisis. Hell, Obama is for continued pro-trade with China and doesn't even want to fix the trade deficit!! He voted against strengthening unfair trade practice laws.




[edit on 22-6-2008 by jetxnet]

Originally posted by jamie83

I'm taking a wild guess that neither you nor Obama have any idea what the "Enron Loophole" is or how it might possibly affect oil prices.

And I'm taking a guess you didn't go to the link I posted above where we discussed all this already!

So, here it is again!

This is the link to an ATS thread:
‘Perhaps 60% of Today’s Oil Price is Pure Speculation’

And here is a SOURCE I used for the thread

reply to post by LLoyd45

They are doing something about it already.

From the article.

Congress already has acted to close the loophole, including a provision in the huge farm bill that passed earlier this year. But Obama's campaign said the candidate would go further by requiring that U.S. energy futures be traded on regulated exchanges.

So the loophole may be gone by the time he is elected, but Obama wants to take it further. Also In the link I provided earlier, they mentioned that some other things that can be done is require a higher minimum to cover purchases, and force speculators to take delivery instead of buying and selling like day traders.

reply to post by Boone 870


Yeah, I know, I'm not too sure if the Gramm thing is true or not.

That's why I said "if" in the opening posts.

I don't really know how you could find out who adds what little tid-bit to each bill that is passed.

Keyhole, is not the Oil crisis a world problem? Is it not OPEC and the national Oil companies (not just American) that are adding a few extra cents per gallon for profit?







[edit on 22-6-2008 by jetxnet]

reply to post by Keyhole


This whole ''Gramm inserted a provision in late December 2000'' sounds kind of fishy to me.

Senator Gramm was one of two cosponsors of a bill written by Senator Lugar. The bill, S. 2697 (Commodity Futures Modernization Act of 2000), was introduced and scheduled for debate, but was never voted on by the Senate or the House.

The bill was picked up by the House as H.R. 4541 and was passed 377 to 4.

HR 4541 was later rolled into a larger bill (H.R. 4577) and it passed by a vote of 292 to 60 after the differences between the House version and Senate version were worked out.

I believe that the Obama campaign is being disingenuous when they point their finger at Senator Gramm, unless they want to point out the provision he inserted.

Keyhole, is not the Oil crisis a world problem? Is it not OPEC and the national Oil companies (not just American) that are adding a few extra cents per gallon for profit?

Keyhole, is not China's economy booming at an alarming rate, therefore providing more demand from the current Oil supply chain?

Keyhole, did not McCain and Bush just advocate for off-shore drilling? Off-shore drilling has been banned for quite some time.

Keyhole, did not Saudi Arabia, just within the last week, add over 200,000 more barrels of Oil output per day as to stave off potentially further increases in supply strain?

Keyhole, does the world Oil problem come down to just a single loophole?

reply to post by Keyhole

I don't really know how you could find out who adds what little tid-bit to each bill that is passed.

Unfortunately, I don't know how either. I guess it's time to put on my Google-Fu black belt and go to work.

Maybe something was slipped in while the differences between the House and Senate versions were being worked out in conference. Regardless, the revised version was passed unanimously and any potentially dishonest add-on should have been detected.