CFTC Conceals the Real Problem, the Infinite Dollar
Jul 29 2009 GoldSeek
Today's hearing by the U.S. Commodity Futures Trading Commission to discuss speculation in futures markets is a sham, a kangaroo court.
Notice that the concern of the CFTC is only why oil went up last year. The commission has no concern as to why oil fell so abruptly from $147 down to $35 even though Don Coxe was widely quoted at the time as saying the government had instigated a massive takedown. The commission's focus is on commodities of "finite supply" and preventing speculation.
Until about 10 years ago the world was always living with a glut of commodities, and particularly the most important one, oil. Technology had allowed the production capacity of oil to always grow much faster than demand. This is why OPEC was always trying to impose production quotas, but they had little effect as poor discipline always led to oversupply. In the first half of 2008 the world was struggling to produce enough oil to meet demand. In 2007 we saw a rice shortage and producing countries put restrictions on exports. We saw a shortage in corn as an ill-fated plan to solve the growing energy crisis involved making ethanol from corn.
http://news.goldseek.com/GoldSeek/1248847500.php
29
July
CFTC Conceals the Real Problem, the Infinite Dollar
Jul 29 2009 GoldSeek
Today's hearing by the U.S. Commodity Futures Trading Commission to discuss speculation in futures markets is a sham, a kangaroo court.
Notice that the concern of the CFTC is only why oil went up last year. The commission has no concern as to why oil fell so abruptly from $147 down to $35 even though Don Coxe was widely quoted at the time as saying the government had instigated a massive takedown. The commission's focus is on commodities of "finite supply" and preventing speculation.
Until about 10 years ago the world was always living with a glut of commodities, and particularly the most important one, oil. Technology had allowed the production capacity of oil to always grow much faster than demand. This is why OPEC was always trying to impose production quotas, but they had little effect as poor discipline always led to oversupply. In the first half of 2008 the world was struggling to produce enough oil to meet demand. In 2007 we saw a rice shortage and producing countries put restrictions on exports. We saw a shortage in corn as an ill-fated plan to solve the growing energy crisis involved making ethanol from corn.
http://news.goldseek.com/GoldSeek/1248847500.php