Here we go again...are speculators driving up the price of oil?

I thought we cleared this up back in 2009, when independent reports concluded that speculation was largely to blame for high oil prices and again last year when a Congressional investigation concluded the same thing. Even Fox News reported that speculation was to blame. I remember, because I was there on Neil Cavuto's show when he did the story on it.

The controversy (and I don't know why it should still be controversial) was reignited yesterday by Nancy Pelosi, when she blamed speculators for the rise in oil and gas prices.

First, the facts: oil production is up and demand for crude and gasoline is down, but prices keep rising. This goes against the most basic law of economics.

Second: According to the CFTC, large specs (funds and swap dealers) are long NYMEX WTI and ICE to the tune of nearly half a billion barrels! And that's only in one type of crude. That's about 50 days worth of global consumption. In other words, take 50 days worth of oil off the market and see if the price doesn't go up. Are you kidding???

Let's be honest; the debate about speculation cuts right through party lines--Republican and Democrat. Repubs claim it has nothing to do with speculators (even though the GOP admitted that speculation was part of the reason) while Dems claim it's mostly about specs.

I'll be arguing on the case for speculation (causing it) on Fox News, tomorrow at 10:00am ET. Bulls & Bears.

Who REALLY runs the US Treasury: Hedge fund traders

The Treasury Borrowing Advisory Committee (TBAC) consults with the US Treasury and advises them on the strength of the US economy (I thought the Fed is charged with that task) and provides recommendations on debt management issues.

Here is the statement from the Treasury's website:

The Treasury Borrowing Advisory Committee ("Borrowing Committee”) of The Securities Industry and Financial Markets Association (SIFMA) is an advisory committee governed by federal statute that meets quarterly with the Treasury Department. The Borrowing Committee’s membership is comprised of senior representatives from investment funds and banks. The Borrowing Committee presents their observations to the Treasury Department on the overall strength of the U.S. economy as well as providing recommendations on a variety of technical debt management issues. The Securities Industry and Financial Markets Association does not participate in the deliberations of the Borrowing Committee.

So who are these people who are not accountable to Congress, to the President, to taxpayers, to no one but themselves? They are Wall Street money managers, traders and hedge fund operators.

They are people like, Paul Tudor Jones of Tudor Investment Management, a billionaire hedge fund trader. Or Richard Axilrod of Moore Capital Management, another commodity speculator. Then there's Stephen Rododsky, Managing Director of Pimco, whose boss, Bill Gross, SHORTED US TREASURIES even as his employee, Mr. Rodosky SITS ON THIS VERY BOARD ADVISING THE US TREASURY HOW TO OPERATE IN THE BOND MARKET!

Then there is this "genius" statement from the "genius" chairman of this committee, Matthew E. Zames:

This "genius" doesn't even understand how rates are set, the role of the Fed, risk (or lack thereof) to fiat currency issuers when it comes to their own debt/spending.

Are you kidding????????

This is beyond outrageous. This is a total hijacking of the American economy by a bunch of speculators and market operators that have no interest in the average American whatsoever. This is a sham! The public needs to know about this! Please distribute to as many people as possible!

Biofuels, Speculators Driving Food Prices

A new report on global hunger pinpoints factors at the heart of spikes in food prices it says are exacerbating the unfolding food crisis in the Horn of Africa.

Released ahead of World Food Day on Oct. 16, the report calls for action to control price volatility in the global food market and protect the world's poorest from the scourge of famine....

The Global Hunger Index (GHI), released Tuesday by The International Food Policy Research Institute (IFPRI), Welthungerhilfe, and Concern Worldwide, points to climate change, growing demand for biofuels, and increasing commodities futures trading in global food markets as the causes of price increases in food, which it says were also at the root of the food crisis of 2007-2008....

Increasing food commodities futures trading, when investors bet on future prices for food commodities, in maize, soybeans, and wheat, have increased prices for those foods, according to the GHI. The report points out that money invested in food commodities futures trading went from 13 billion to 260 billion dollars between 2003 and 2008.

Read the whole post at IPS, Biofuels, Speculators Driving Food Price Surges by Amanda Wilson

(emphasis added)

Why are you paying more for gas? Speculators from Bill Gates to the Yale endowment are buying oil futures

What a joke. As people struggle to pay their bills and put food on their table we allow rich individuals and university endowments to buy oil futures, adding to upward price pressures. Meanwhile, nothing is done. Then, when people demand to know why this is happening, they are given bogus excuses about China and not allowing offshore drilling.

"A range of investors were in the market, too. Yale University, Singapore's government, hedge funds Brevan Howard and D.E. Shaw & Co., as well as pension funds for Texas teachers and Danish workers all held positions, according to the list. Also featured were a handful of individuals, including Aubrey McClendon, chief executive of Chesapeake Energy Corp. (CHK - News), one of the nation's largest producers of natural gas. Cascade Investment LLC, the investment arm for Microsoft Corp. (MSFT - News) co-founder Bill Gates, appeared."