“…the media and much of the populace at large have simply accepted high food and oil prices as an unavoidable fact of life, without any discussion of the causes of these price rises aside from platitudes”.
Do you understand why oil prices have gone through the roof? I expect that you think that the volatility in the Middle East has something to do with it. You’re right. It’s the reason, but more to the point, it’s the excuse. The current price of oil is almost entirely due to speculation.
Did you know that approximately 60 to 70 percent of the oil contracts in the futures markets are now held by speculators? They’re not held by companies that need oil, not by the airlines, not by the oil companies, but by investors who profit money from their speculative positions.
Futures expert Phil Davies puts it this way:
“It’s nothing but a huge scam and it’s destroying the US economy as well as the entire global economy but no one complains because they are ‘only’ stealing about $1.50 per gallon from each individual person in the industrialised world.
It’s the top 0.01 per cent robbing the next 39.99 per cent – the bottom 60 per cent can’t afford cars anyway (they just starve quietly to death, as food prices climb on fuel costs). If someone breaks into your car and steals a $500 stereo, you go to the police, but if someone charges you an extra $30 every time you fill up your tank 50 times a year ($1,500) you shut up and pay your bill”.
Were you aware that speculators have oil tankers criss-crossing the globe only allowing them to land their cargo when the price is right? This is a cartel that is manipulating the market for personal gain and our expense. A cartel well versed in how to keep prices going north and keep us shelling out.
Like the banking industry, futures markets are lightly regulated. The consequence of this lack of proper attention by governments is that we are being robbed blind.
If you think banksters are bad, speculators run a very close second. It’s time to stop this scam – and a scam is exactly what it is – because the human cost of this unbridled greed is high, very high – and totally unacceptable.
And why hasn’t the government done something about this scam? Well, where’s the incentive? Increased oil prices means the Treasury benefits from higher fuel duty and VAT revenues. That’s the way they think: crazy, idiotic, myopic, but true.
The failure of our government and governments across the world to address the issue of speculation and to regulate futures markets properly is a scandal.