More pandering from Obama:
[youtube]http://www.youtube.com/watch?v=vnsmFQy62uM&t=28s[/youtube]
Of course government needs to step in to protect consumers because god knows us consumers can’t think for ourselves and we need to be protected from those eeeevvviiiiiilllllll bankers…woops, I mean those eeeeevilllllll CEO’s….woops, I mean those evvvvvillllll speculators.
Now it’s the speculators and their evil capitalist ways. I mean how dare they want to make a profit? To a Socialist, like this man, it’s pure evil to want to make money. Everything should be done to help the State, all profits should be confiscated and the government should be allowed to decide who is worthy to receive that which they didn’t work for.
This is how this man thinks.
By the way, did we hear these kinds of complaints when the price of oil went down to 30 bucks a barrel not so long ago? No, Didn’t think so.
So now our President is going to take 52 million dollars of our tax money to pay for more bureaucrats to investigate speculators AGAIN!
In the U.S., we’ve had repeated federal investigations of speculators’ role in driving up prices — in 2003, 2005, 2006, 2008, 2011 and again this year. Not one has found evidence of pervasive market manipulation.
How else to describe this as anything other than pure political pandering to his base. His base wants the mighty hand of government to control all aspects of life in this country. Somehow they believe if government bureaucrats get involved they will stop oil speculators from making a profit and THAT will drive the price of oil down?
Let’s not even mention the fact that our exchange is not the only exchange in the world. There are exchanges and speculators all over the planet, and our government can’t do a damn thing about preventing them from making a buck. Speculators will just move to those exchanges if he makes it difficult for speculators to make a buck AND speculation will still occur.
The fact of the matter is that speculators don’t cause higher prices. Higher prices occur because of supply and demand: (pdf)
In theory the price effect of commodity financial investment is ambiguous. On the one hand, well-informed, rational investors should add liquidity to commodity derivatives market, facilitating price discovery and keeping prices more aligned with fundamentals. As commodity investors buy when prices are low and sell when prices are high, this should help clear the market. However, some argue that “ill informed” investors exhibiting herding behavior could add to price volatility (page 6).
That said, most empirical studies find that financial investment in commodities does not have a significant effect on commodity prices. The World Bank, commenting in its June 2011 Global Economic Prospects, observes that “[d]espite such contrasting views [on the relationship between investment fund activity and commodity prices], the empirical evidence is, at best, weak.” (World Bank (2011). p. 62) Moreover, financial investment plays a key role in liquidity provision, and some speculation is needed to clear commodity derivatives markets.
…and volatility
The French G-20 leadership and other official sector entities have also expressed concern regarding the potential role of financial investment in causing commodity price volatility. The most recent upswing in commodity prices beginning in 2009 was accompanied by a sharp rise in commodity price volatility, peaking in February 2010, though volatility has since returned to levels prevailing
during 2000-2009 (Chart 6 below).However, the even more striking increase in commodity prices during 2008 was not accompanied by a commensurate increase in commodity price volatility.
Broadly speaking, research on the impact of financial investment on commodity price volatility—including work done by the BIS in 2007, the IMF in 2008, and the OECD in 2010—suggests that there is little evidence linking financial investment in commodities to higher commodity price volatility. Indeed, some researchers have found that the presence of key financial investors (index and swap funds) actually helps reduce market volatility. (OECD (Irwin and Sanders). (2010). IMF World Economic Outlook. (October 2008). BIS Quarterly Review. (March 2007)). That said, some recent research indicates that new investment vehicles may have been responsible for at least part of the post-2005 volatility in commodity prices. (World Bank (2011). p. 62)
Is the end goal of Obama here to bring back OPEC? I doubt it. The end goal here is just to rile up the base. Nothing he suggests, no “five point” plan he puts out has any hope of bringing down the price of gas. He needs to open up drilling to every inch of this country and off-shore. THAT will bring down the prices.
Until then we will continue to get inane pandering from this insult of a President.
See author page
I completely support the right to invest in commodities, as long as the investments are done on an equal footing for all. I do believe that there is constant manipulation by the big investors. They get in and out of the markets together taking the gains while small investors get hung out to dry when they get out too late or buy from the big investors (not really knowing who they are buying from). Worse yet is when mutual funds get into the markets and let their investors absorb the losses with little control of the risk.
Yes, market manipulation takes place and should be stopped. But another $52 million to just investigate what the SEC should already be doing. That is a pile of sh** just as bad as the waste by the GSA.
The trouble with oil being traded as a commidity is the impact on the economy. If any commodity should be regulated, it is oil. I work in manufacturing and our costs increase dramatically with oil. Our freight costs skyrocket immediately and the steel prices soon follow as that is such an important compenent in the mfg of steel (heat). Our product cost can jump as much as 20% in just a few months. It is impossible to recoup that from customers, especially on a short term basis. The impact on consumer spending is obvious, but the impact on manufacturing spending may be even worse. It is usually the employees that take the first hit.
Open markets are great, but must be safeguarded. An open and free market to protect capitalism on one end can lead to massive damage to capitalism on the other end.
Good coverage and viewpoint on Obama and one of his perceived enemies, Curt.
@Will:
Will makes an important point, it seems as though Obama’s main goal was to steal yet another $52 million without congressional purse string authority……and it is going toward the SEC doing what it ought to have been doing all along.
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One a side note, didn’t Fox Business News guy, Eric Bolling, seem to say that oil speculating did have something to do with oil price inflation?
At the 2:15 point in his video Bolling makes this simple point: all we have to do is increase the energy trading margin requirement (oh, and DRILL, BABY, DRILL!)
Voila! $52 million….saved!
But I wish to expand on Obama’s tactic of turning America into small enough factions to where he can pick off one faction after another while ”the majority” cheers him on.
Most Americans do not speculate in the commodities market, so Obama will have a ”popular” action in this.
Just like most Americans are not Catholic so Obama thinks he will have a clear path to, “You don’t want to buy it, fine. We’ll fine you into oblivion.” That, says a lawyer representing a number of Catholic institutions, is what the Obama administration will say to his clients if the federal courts do not strike down a regulation the administration has issued that requires all health insurance plans to cover sterilizations and artificial contraceptives, including those that induce abortions.
Obama is pandering big time, to consolidate what he thinks is ”his base.”
But it is a bad job he is doing because he keeps disappointing one part of that base after another.
Think pandering to the leftist ladies of NOW is working?
Just like any liberals, they are never satisfied with what is offered, but demand more.
Today, the head of NOW is demanding that 1. abortion be common and 2. all females be given free everything birth control related.
Obama can pander but he can never ”please” those on the Left.
The game of Distort, Distract, and Decieve are in play for 0-bama.
Will, you might want to stop for a minute and wonder why people might be looking to invest in oil, or gold, or any other hard asset. Our government is borrowing obscene sums of money, and what it cannot borrow, the Federal Reserve simply creates out of thin air. That same Federal Reserve is artificially keeping a lid on interest rates, ensuring that savers cannot earn any return on their savings, except by taking risk in stocks or in speculative investments. Savers see a world where the rate of inflation in the ever-depreciating dollar is higher than they can earn on their savings, even before paying taxes on the interest “income” (really, just a return of some of the lost purchasing power). So, in this environment, you can expect investors to run for cover – but to where? Normally, they might run to foreign banks, but these same forces of creeping inflation and manipulated low interest rates are widely seen throughout the world. Or they might run to stocks, but in a stagnant economy where the government seems hostile to productivity and investment, and where back-to-back bubbles have produced a see-saw market with no net returns for 12 years and counting, one might forgive them for looking elsewhere. So to preserve their purchasing power, they run to hard assets. Especially to assets that are all too finite, and where once again our government seems to want to keep the most promising and cost-effective potential resources off-limits forever.
Want to put a damper on oil prices? It’s not rocket science. End the endless ZIRP policy at the fed and start offering savers a positive return on bonds and CDs, and you’ll take a lot of air out of the commodities markets. Then open up some of the off-limits areas to drilling, and make peace with Canada over the oil sands. Make it obvious to the markets that the price of oil will be under pressure from new supply, not immediately, but inevitably, and it will look less attractive as a store of value over the coming decade.
Democrat solution is ALWAYS MORE GOVERNMENT!! Conservative Solution?? We already HAVE people to do that job!! FIRE those NOT doing the job, they were HIRED to do NOW!
Curt, a fine exposé. Let’s see? Did Obama attend the G-20 summit in Cannes, France? Why, yes, yes he did. So does that mean that Obama’s presence validates (or at least lends credence to) the report Curt cited? Again, yes. And was this report available for Obama to see? Again, yes, it was. So what conclusion can we draw from all of this? Regarding oil speculation, Obama is only interested in votes.
Regarding comment # 5, Hankster, once hired, a “guvmit” employee cannot be fired.
As you know, our family is in the drilling industry. Its our business to know what drilling programs are coming up. I buy stock accordingly. Insider trading and speculation. lol.
Ever notice how Obama loves international law?
Well, he all of a sudden has discovered an imminent danger to our US sovereignty!
Yup, for real!
It is the KEYSTONE PIPELINE!
“It would be preemptively sacrificing American sovereignty“ to approve the pipeline, the White House claims!
“The United States Congress — a very important body, takes American security and sovereignty very seriously, or should — is saying that we will, in advance — blind — approve a proposal for a pipeline, a proposal for which does not exist,” Carney added.
Byron York pointed out what happened next:
“Before the vote, Obama issued a veto threat.
The House approved the pipeline anyway — by a veto-proof majority, 293 to 127.
Sixty-nine Democrats abandoned the president to vote with Republicans. That’s a lot of defections.”
Isn’t Obama an oil speculator himself by putting billions of taxpayer’s money into fancy pants green energy companies like Solyndra that quickly go broke no fault of the government because they meant well?
Y’know, even if I bought into this demonization of oil speculators, what difference would it make? I can’t make them suffer at a polling place in November, but I can do so with an incumbent president who I’m not particularly fond of.
OBAMA HAD a deal made in heaven with BREZIL, and that’s why he make it hard for CANADA
WHICH HE HAD MADE PREVIOUS DEALS WITH AND BROKED AND THEY ARE PREFERED BY THE AMERICANS, WHICH KNOW IT’S A BETTER SAFER MOST TRUSTED FOR AMERICA,
OBAMA IS CONSTANTLY FIGHTING THE WILL OF THE PEOPLE, THAT ON EVERY ISSUES,
SINCE HE WAS ELECTED, HE EARN THE DISTRUST OF THE PEOPLE WHICH NOW ARE GOING IT ALONE AS MUCH AS THEY CAN, BUT WILL DO BETTER AFTER NOVEMBER, BECAUSE THE PEOPLE WILL BE FREE FROM ALL THOSE RESTRICTIONS, THEY WILL FIX
God, please save us from this buffoon, this incessant propagandist and always the campaigner who ‘really’ only cares about himself not Americans and Not America….always the Socialist – Marxist – Communist in chief …that goes for Pelosi, Reid and the rest of the Washington bubble heads….fast tracking to bring our America and her economy..down…
God Bless America and all her people….
….it ain’t over till the fat lady sings…or pigs fly!
FAITH7
HI,
PIGS FLY? IS THAT THE GEICO PIGS? I LOVE THAT MACHO PIG,
HE IS IN ALL SPORTS, HE CLIME ON POST WITH HIS LUGE AND STAY ALIVE,
HE HAS THAT PROFILE LIKE FOX, FAIR , BALANCE, AND UNAFRAID,
LIKE BRETT SAY SO WELL.
BYE
Hey Bees@13 – His name is Maxwell. Some people cannot stand him I think he’s annoying in a cute way…
Well, Nancy Pelosi and ilk wants to shut down Conservative Speech on the airwaves and TV she wants to amend the 1st Amendment to our U.S. Constitution….as I said before when pigs fly!
No American in their “right mind” will allow this to happen!!!!
Any misgivings about this are now crystal clear – this really proves she’s a Communist!
FAITH7
hi,
did you see his look when he pass the athlete on the luge, and also the athlete look, then the flight over the post, when he see it, hilarious, but it seem that geico is back on the commercial now.
NANCY PELOSI IS DESPERATE LIKE THE OTHER DEMOCRATS, TTHEY WILL WORK HARDER TILL THE END TO LEAVE AMERICA SO IN A WORSE CONDITION , TO BE ABLE TO BLAME THE NEXT PRESIDENT,
FOR ALL THE DESTRUCTIVE MEASURES THEY IMPLEMENT DURING THEIR TIME IN THE WHITE HOUSE,
but it’s coming soon to an end,and by the PEOPLE WHO
ELECTED THEM BY GOOD WILL INTENTIONS, AS AMERICA IS AND HAS BEEN SINCE SHE WAS FOUNDED AND GOVERNED BY THE LAWS OF THE FRAMER”S WISDOM,
AND NOW AMERICA WILL GET THEM OUT, THE SAME TOLERANT WAY IN NOVEMBER.
BYE