So what could King Solomon have to say about the price of gasoline when it did not exist when he lived?
Gasoline was not a vital commodity three thousand years ago, but grain was. Gasoline is vital today because millions of average Joes and Janes need it to drive to work in order to pay for food (grain) to feed their families.
A speculator today who buys future oil contracts solely to profit, in other words has no need for the oil to use for business or home use, in my personal opinion fits the description of the most hated man in a King Solomon proverb I described in a previous post. HERE
So who are these speculators? Banks, hedge funds, and private risk takers with lots of money available to gamble and when they win, it increases the price of gasoline by as much as twenty five percent according to some estimates.
A few years back, a Congressional committee studied the effects of oil speculators have on gasoline prices and concluded that they have no effect. If not, why would they risk and invest their time and money to speculate buying oil futures if they did not profit by selling the oil contracts at a higher price than they paid? I guess everyone understands that profits are derived from a cost being added to the selling price, except those employed in a government committee.
King Solomon judged everyone with only two words, wise of fools. I think I know how he would judge the Congressional committee members, and wise would not be the word he would use.
I read in today’s Chicago Tribune of a new listing to make transparent for the public to view potential abusers of Medicare payments. I recommend a similar listing be made available for the public to see who the speculators are so we can boycott their business. Boycott is our only alternative to do something to end oil speculators because Congress will never do anything. Maybe because the speculators are probably big political fund contributors? We will never know if we do not know the names of speculators, will we?
Reference Posts
Speculation in a commodities such as oil tends to be rather difficult. That’s because if you try to corner the market your competitors will eat your lunch. However, government has both the power and the resources to corner the market.
Currently, government is tinkering with the energy business a great deal, and some people are profiting, and some are not. Some like, wind mill manufacturers and ethanol producers are making money when without government favoritism they could not.
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Speculation and control of oil production raises the price of gasoline. Unfortunately, gas is a vital and energy are vital commodities of survival in our modern world and government needs to develop a long term plan to develop new energy sources.
Not all present energy sources such as oil will be available forever. My suggestion would be to begin amortizing all energy source costs in a manner so as not to allow speculation and the USA become dependent on any one energy source. If we don’t plan and begin implementing a long term energy plan, there are going to be dire consequences for both our economy and freedom in the USA in the future.
In ancient times, wise rulers would store grain for future times of pestilence and draught. Our government leaders spend and borrow without regard for long term consequences. Wise or foolish are the words King Solomon used to judge everything. In my opinion if he judged our government today, wise is not the word he would choose in planning for energy in the future.
Regards and good will blogging.
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There is a finite amount of fossil fuels. Taxes should reflect the fact these energy sources cannot be replaced. Nonetheless, setting the amount of those taxes will involve political battles that cannot be avoided.
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The battles waves will be less turbulent if term limits were implemented for all political offices in my humble opinion.
Regards and good will blogging.
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