Share on Google Plus Share on Twitter Share on Facebook 4 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit 1 Share on StumbleUpon Tell A Friend 9 (14 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   6 comments

OpEdNews Op Eds

Familiar Names Responsible For Skyrocketing Gas Prices

By (about the author)     Permalink
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; ; , Add Tags  (less...) Add to My Group(s)

Must Read 3   Well Said 3   Supported 1  
View Ratings | Rate It

opednews.com Headlined to H3 2/26/12

Become a Fan
  (12 fans)
As you max out your credit cards at the gas pumps, you should know that the major players to blame for the spike in gas prices are the same people who tanked the world economy four years ago-- our friends, the Wall Street speculators .

That's right, many of the same banksters--Goldman Sachs, Morgan Stanley, J.P. Morgan, et al., who manipulated the mortgage market with unsecured derivatives, created a bubble that burst in 2007 and 2008, causing a worldwide financial meltdown--are in large part responsible for the skyrocketing price of gas at the pump. Another familiar name, Enron, even has a role in this story.


Oil Speculators by
Matson/ St. Louis Post Dispatch

There are multiple reasons for fluctuations in the price of gas, among them oil supply and demand, and geopolitical developments. But according to Bart Chilton, a commissioner at the Commodity Futures Trading Commission,  the federal agency that regulates commodity futures and option trading in the United States, much of the spike in gas prices is due to "excess speculation" by Wall Street traders.

How much? Chilton told ABC News that Honda Civic owners are paying about $7.30 to Wall Street speculators each time they fill up their gas tank.  Ford Explorer owners pay even more, an extra $10.41.  For a Ford F150,  it  jumps to $14.56 per fill-up, or about $750 a year.  How Wall Street is Raising the Price of Gas .

Chilton said the CFTC  is trying to put new rules in place to limit speculation. Wall Street predictably does not approve and is suing the CFTC in order to get an injunction to keep the status quo.There have been investigations, by Congress, by the Justice Department and other federal agencies, but they all seem to fade away under the weight of Wall Street clout. Amazing how that works.

The Consumer Federation of America estimated the average household, which spent almost $2.900 in 2011 on gasoline, will spend almost $600 more this year due to "excessive speculation."  They figured deregulation added about $30 per barrel to the cost of oil in 2011, draining more than $200 billion from the economy.  "It was weak regulation that landed us in our current economic mess," CFA Director of Investor Protection Barb Roper said, "and it will take a strong policy response to restore the economy to health." CNN Money

And who was responsiblefor the deregulation that enabled the excess speculation in the oil futures market?  Steve Kroft asked  Michael Greenberger, a former director of trading for the CFTC, that question on a CBS 60 Minutes segment in 2009.
Tips on adding images, video and indented blockquotes
"You'd have to say Enron," he replied. "This was something they desperately wanted, and they got...This was when Enron was riding high. And what Enron wanted, Enron got."

ExxonMobil Chairman Rex Tillerson, testified before the Senate Finance Committee on May 12, 2011, suggesting that excessive speculation may have increased oil prices by as much as 40 percent.  What Wall Street Doesn't Want Us to Know About Oil Prices


At that hearing, Senator Maria Cantwell (D-WA) pointed out that the oil futures market was set up to moderate the price and risk of petroleum for those who use it. Prior to deregulation, for most of the 20th Century, non-oil-using speculators accounted for 30 percent or less of the oil commodities market. Now that number is closer to 70 percent.  Senator Cantwell Press Release

Independent Senator Bernie Sanders of Vermont leaked CFTC data last August showing that at the time of oil's record high near $150 a barrel in July 2008, the market was dominated by big speculative players such as Goldman Sachs, Morgan Stanley, J.P. Morgan and the secretive Swiss oil-trading firm Vitol. You would be correct if you remember hearing many of those names during the 2008 financial meltdown and its aftermath. 

 According to Senator Sanders, in a Washington Post op-ed last September: 

"The CFTC report proved that when oil prices climbed in 2008 to more than $140 a barrel, Wall Street speculators dominated the oil futures market. Goldman Sachs alone bought and sold more than 860 million barrels of oil in the summer of 2008 with no intention of using a drop for any purpose other than to make a quick buck." 

The Vermont senator understands what is at stake:

"One of the great questions of our time, is whether the American people, through Congress, will control the greed, recklessness and illegal behavior on Wall Street, or whether Wall Street will continue to wreak havoc on our economy and the lives of working families..."

 

thebigpicturereport.com

Arlen is a writer/blogger living in Monterey, CA. His political blog is thebigpicturereport.com. He writes a weekly quotation quiz "What's Your QQ?" (Quotation Quotient) for the Monterey Herald, as well as a quotationquotient.com website and (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

"No War By Any Nation in Any Age Has Ever Been Declared By the People"

Is the CIA Everywhere? Maybe Your Paranoia is Justified

11 Sure-Fire Predictions About the War Against ISIS

Which America Do You Live In: Newsweek's "SuperCountry" or Reich's Stalled "Tinder-Box"?

The Fed's Unprecedented Generosity

How Occupy Wall Street Helped Obama Win

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
5 people are discussing this page, with 6 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Will the America people sit patiently and hope the... by Arlen Grossman on Sunday, Feb 26, 2012 at 9:21:44 AM
It's not speculation when "experts" are able to sa... by Ray O. Sunshine on Sunday, Feb 26, 2012 at 12:42:44 PM
for writing this so clearly that it is absolutely ... by Mary Pitt on Sunday, Feb 26, 2012 at 4:38:04 PM
This is why we need a well regulated economy. ... by novenator novenator on Monday, Feb 27, 2012 at 4:10:28 PM
  That someone bidding in commodities futures... by larry on Monday, Feb 27, 2012 at 9:04:47 PM
There is a bill in Congress, the Dodd/Frank bill w... by Mary Pitt on Monday, Feb 27, 2012 at 9:20:50 PM