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U.S. Sen. Bernie Sanders (I-Vt.) said Thursday he will introduce legislation to force federal regulators to curb unbridled speculation in crude oil markets that experts blame for driving up gasoline prices.
"We cannot allow Wall Street speculators to continue to rip off the American people at the gas pump any longer," Sanders told a press conference at his Senate office. Sanders accused the Commodity Futures Trading Commission of flouting a law that required the regulators to impose new limits on speculators by January.
"In other words," the senator said, "the chief regulator on oil speculation, in my view is breaking the law."
link for this report is here:www.abovetopsecret.com...
Sanders cited mounting evidence that the sky-high price of gasoline - $3.88 a gallon in Vermont, a dime more than the national average - has nothing to do with the fundamentals of supply and demand and everything to do with speculators.
He noted that the supply of crude oil in this country is higher today than two years ago while demand for gasoline is lower.
He cited recent testimony by Exxon Mobil CEO Rex Tillerson and a report by the investment firm Goldman Sachs that speculation is responsible for 20 percent to 40 percent of the recent spike in oil prices. The senator also pointed to a report today that credited the booming oil market as a money maker for big banks.
"The skyrocketing cost of gasoline is causing severe economic pain to Vermonters and millions of Americans who have already suffered through the worst economic crisis since the Great Depression," Sanders said. "Increased gas prices are taking a serious bite out of the paychecks of middle-class Vermont families, many of whom are already working longer hours for lower wages. We have a responsibility to do everything we can to lower gas prices so that they reflect the fundamentals of supply and demand and bring needed relief to Vermonters at the gas pump."
Ron Paul is taking on the Fed, and nothing is happening. Bernie Sanders is taking on Big Oil, and nothing will happen.
was reading your posts on a thread about Obama drawing the line in the sand for no more tax breaks for the rich, and i have to say i had to star all of your comments..lol.
"When you buy a contract of crude, if you buy it for $112, and it goes to $113, you make a thousand dollars," he says. And with prices steadily increasing over the past eight months, plenty of people are making money. Investors do lose money if oil prices fall. So Cohen says it's not the buying and selling of oil contracts that forces prices up, it's the hard cold fact that ultimately there is a limited supply of oil. "We don't really have lots of oil. Because when you go out into the future, it's the big question on whether we'll be able to get the oil," he says. Cohen also believes the decline in the value of the dollar, because the U.S. government and other nations print so much money, increases the value of more finite resources like oil. That he says, then pushes the price up. And he doesn't see it getting any better in the long run. "Unfortunately I'd say get used to it. Because it's going to get worse."
Oil speculators buy and sell oil futures simply to make a profit, and in many cases, never take delivery or use the oil. Speculators who buy and sell large amounts of oil can artificially cause the per barrel price to climb.
Originally posted by projectvxn
reply to post by dwmjr1985
This happened during the Bush years too. And the Bush Administration blamed oil speculators for the price ramps. Never mind that the dollar was hitting all time lows back then as well, not to mention the fact that all other commodities were also seeing price ramps. Price ramps like what we're seeing today cannot be explained simply by blaming trading activities on Wall St. Can speculators manipulate the price of a certain commodity? Yes. Can they do it to all commodities in tandem? NO. So if we're going to blame commodity price ramps this high on speculators we have to blame them for rice, corn, coffee, cocoa, pork, cattle livestock and it's derivative products, cotton, gold and silver.
Never mind that these investment vehicles are far different than oil...but seem to be experiencing similar or even higher price ramps than oil.
Indeed, blame speculators if you want to. The smart money is on the Fed.edit on 12-6-2011 by projectvxn because: (no reason given)
In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!