International Writers Magazine:OIL
Reasons Why Oil Price Speculation Requires a Change in the
Rule of Law
oil prices that are governed by the commodity markets are in dire
need of common sense law and order. When speculation and detrimental
logic and reasoning take central command of human society, the results
always turn out to be damaging to the majority, at the abundance
of the few.
The experts and
speculators will argue we need free markets and any interference will
take away free trade. Well, in many cases they are correct, however,
when it comes to essential commodities of food and energy they are completely
out of order. Here are a few reasons why essential commodity markets
require new legislation.
1. There has been no shortage of gas at any filling station for
the past 10 years yet prices are up 1200% because of futures trading
going out more than eight years. Even the Saudi oil minister has recently
stated the price of a barrel of oil should be no more than $70.00. Demand
from China and India is still far less than that of the USA. The Chinese
stock market is down 50% signifying a sharp slow down. This news still
is not enough to stop the wild speculators hiking the oil prices.
2. When hurricanes hit Florida many gas stations are closed and
there is a real shortage of gas for a few days. However, if a gas station
increases its prices they will be prosecuted for price gauging. Therefore,
if we take the experts argument that there is a shortage of oil
then that still does not give anyone the right to profit from the shortage
as this is deemed to be prices gauging. How can the USA governments
have double standards and prosecute gas station owners who price gauge
and not treat commodity markets in the same manner?
3. Oil is an essential commodity for every day living in the same
way as water is an essential commodity. It makes no sense to trade water
so why leave oil in the hands of anyone who wants to make a quick buck
gambling on prices.
4. Pension and hedge fund managers have invested billions of dollars
in oil futures. The futures markets are very volatile, thus, no place
for pension funds to risk the money for people who trust them to build
future wealth. The fiduciary duty of a pension fund manger is to find
reasonable returns with low risk and the commodity markets is not that
5. If the price of oil was regulated between $40.00 - $80.00 a
barrel, the price could go up and down on supply and demand. This would
be fair to everyone, for even when supply was plentiful, the price would
not drop below $40.00 which will still give a fair profit to most oil
related industries. When oil is in short supply the price would be limited
to a ceiling of $80.00 which is more acceptable to world economies.
6. There is a moral issue that greed cannot come before peoples
basic needs ... No right-minded, ethical, principled government can
allow starvation and financial ruin because of a system of trading that
is completely out of control.
7. The price of a barrel of oil effects transport, food supply,
industrial production and every part of modern day living. If terrorists
wanted to devise a plan to destroy the world. economies what better
way than finding a method to allow oil to trade at $140.00 a barrel.
Why play a game that makes terrorists and anarchists happy.
8. Goodwill to all people is the credo every democratic country
is built upon.$140.00 a barrel oil delivers no goodwill. It only brings
hardship and political uneasiness.
9. Noble deeds and fair dealing is the hallmark of success for
every truly prosperous person. Since the world is made-up from people,
where are the noble deeds and fair dealing in the commodity pits.
10. We are all put on earth to help each other succeed in the pursuit
of freedom, liberty and happiness. There is no freedom when people are
slaves to greed. There are only liberty takers when oil trades over
$80.00 a barrel. And finally financial hardship brings misery and discontent.
The time for change in essential commodity trading is now. To quote a
few voices from the past...
Experience demands that man is the only animal which devours
his own kind, for I can apply no milder term to the general prey of
the rich on the poor - Thomas Jefferson
For greed all nature is too little. -Seneca
It is greed to do all the talking but not to want to listen
at all -Democritus
He who is greedy is always in want. -Horace
© Michael Levy. June 16th 2008
International talk show host Michael Levy, is the author of eight
books, a mystical poet, inspirational philosopher and wellness/healthy
living speaker. His latest books are "The Joys of Live Alchemy"
and "Worry Causes Wrinkles" which can help a person change
dark negative situations into beautiful, colorful, positive actions,
that bring de-lights on the darkest of days.
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