Saturday, July 12, 2008

Stop Oil Speculation Now site

This was forwarded to me. Here is one of the messages apparently from 12 Airline CEOs. The portal is S.O.S. Now (Stop Oil Speculation Now). 99.9% chance it will do nothing, but it's interesting.

Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.

For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers.

Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

The nation needs to pull together to reform the oil markets and solve this growing problem.

We need your help. Get more information and contact Congress by visiting
Stop Oil Speculation Now.

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8 comments:

Romeo Morningwood said...

Unfortunately I think that most markets operate like this..we have legions of weasels who syphon off imaginary value long before there actually is a tangible product or service.

These guys are the champions of voodoo economics, haven't heard that for a while eh?, and have the best paid lobbyists in the universe who tell politicians bullsh*t like they are actually creating jobs in their district.

I don't know...obviously we don't actually live in a functional Democracy because the great unwashed don't really seem to have any influence on anything anymore...

all that we are allowed to do is manage damage control after these people have drained the last ounce of blood from whatever sector they are currently raping. I think that the entire system is set up to protect their power bases.

I sound like a conspiracy nut don't I? I don't think that there is a grand plan I think that it all just sort of happens.

Susannity said...

I couldn't agree with you more and I don't care if anyone calls me a conspiracy nut. =P I thought I had it in my quote collection, but I came across a quote once something along the lines that conspiracies are knowing more of the facts.

I was watching catching up on Frontline episodes and watched one on the current state of Darfur. Your 3rd & 4th paragraphs are exactly why nothing happens 5 years after it started.

Have a good weekend Don!

ddjango said...

Hey! You're posting less frequently than I am. What gives?

Susannity said...

LOL ddjango. Glad you're back!

I was gone for a few weeks and been busy with the munchkins this summer. I'm-a posting though!

Thanks for coming on over and visiting. =)

cul said...

donnnn has it pegged.

good to see you back.

got an new url by the by

http://deeperwants.com/ratboys_anvil_2/

Susannity said...

Hey Cul! Ok so that's why the old site looked all scrambled! I went to it and it was a very long scroll. Thought it might be you were doing maintenance. I'll fix my link for you. I really like the new look btw!

Susannity said...

doh! commenting on your site requires an acct now cul? Not that it's impossible, but is there a way around that?

cul said...

sorry about that. I didn't know it was doing that...I've opened it up to anonymous and added openID, blogger and typekey as verfications

thanx for the heads up