| The pea brains in Congress and many of their cronies | | | | Oil themselves or George W. Bush. Congressmen rush |
| around the country have found the problem that, they | | | | to the microphones and start talking about all the things |
| feel, is causing us so much pain at the pump. First they | | | | they are going to do to punish these "speculators" who |
| tried to demonize the oil companies. But that did not | | | | are now blamed for running up the price of gasoline at |
| work too well. After that witch hunt, those on Capitol | | | | the pump. Legislative proposals and regulatory rules |
| Hill are getting inundated with requests, if not demands, | | | | begin to be floated by politicians and bureaucrats alike |
| to get off the backs of oil companies and open up | | | | looking for ways to either punish those that have |
| areas placed arbitrarily off limits to exploration and | | | | taken advantage of the problems caused by |
| production. | | | | Congress or at the very least seek to limit the activity |
| So enter the "new" reason why gas prices are so | | | | of the "speculators" and cap their daily profits to a |
| high. The "new" problem is now that people are | | | | level determined by someone sitting behind a desk in |
| investing and taking risks. | | | | Washington. |
| How dare people take risks! Don't they know that they | | | | It is all a big dog and pony show with some smoke |
| might fail? And if they fail, why government will have | | | | and mirrors thrown in for additional effect. But what it |
| to pick them up at tax payer expense - or so the old | | | | boils down to is that you have politicians in Congress |
| canard goes. | | | | seriously considering making investment abide by even |
| However the trick here is that these people investing | | | | more rules, if not making taking risks in the oil market a |
| their own capital are not being called "investors". The | | | | straight up crime all together. |
| new term of derision hurled at these folks is | | | | As long as enough people are angry and not thinking |
| "speculators". Every time you hear this word now the | | | | straight they may get away with it too. But if you stop |
| hope among those who are really the problem | | | | and think about it for a second you realize that if |
| (Congress, radical environment activists, loopy animal | | | | Congress can curtail investment in one market what is |
| rights folks, etc.) is that you are conditioned to react | | | | to stop them from doing it in another? If Congress is |
| with a mighty gasp, a knot in your gut and nod your | | | | allowed to cap one person's profits today what is to |
| head in blind agreement that the problem with the price | | | | stop them from capping yours tomorrow? Your good |
| of oil is the "speculators". | | | | looks and charm? |
| It just sounds so sinister. | | | | Imagine a few years from now a politician with slightly |
| Many of our elected officials are working their grubby | | | | more smarts than your typical politician, who are |
| little fingers to the bone trying to find ways to rein in | | | | generally half as smart as your average American for |
| "speculation" in the oil markets. Congressman Hinchey | | | | reference, realizing that investments in the markets |
| has even repeated a previous call by Maxine Waters | | | | often out perform the return on investment of Social |
| to "nationalize" the oil industry much like Hugo Chavez | | | | Security and make the government program look like |
| has done in the Marxist "utopia" of Venezuela. | | | | the shoddy ponzi scheme it is. So perhaps Congress |
| But many of our elected officials don't seem to care | | | | will next decide that this is unfair and that profits from |
| too much about why this speculation is taking place. | | | | private retirement investments (401ks, 403bs, pensions) |
| They are not interested in the cause, because it is | | | | will have to be limited as well. Perhaps they will be |
| they that are the cause, and are only interested in | | | | limited to the same rate as Social Security where you |
| masking the symptoms of the disease. | | | | would be lucky to get two to three percent return on |
| Investors are naturally attracted to a market where | | | | investment. We cannot have those "windfall profits" |
| they believe they can make money. It does not take a | | | | you know! |
| rocket surgeon to figure that one out. It hardly makes | | | | And on top of this, these investments by "speculators" |
| a lick of sense to invest money somewhere where | | | | in the markets also affect prices. The "speculation" |
| you think your investment will decrease in value or | | | | that goes on with Google or Microsoft stock, for |
| stay at the same level over time. That would defeat | | | | example, drives up the prices so high that most people |
| the entire purpose of investing! | | | | cannot even afford a single share of either. |
| The cause of inflated oil prices is not the investors | | | | Or maybe Congress will next decide that people |
| who are putting their money in petroleum hoping to | | | | "speculating" on gold, which has skyrocketed in price |
| increase their investment. The cause is that right now | | | | over the past couple years, are reaping unwarranted |
| supplies are not keeping up with perceived future | | | | profits. Gold is very sought after and as the price of |
| demand. There are various reasons for this but some | | | | gold is increased by "speculators" many Americans |
| of the main reasons include the vast amounts of oil | | | | can no longer afford to own it. Congress should step in |
| that are arbitrarily placed off limits by government fiat | | | | - or so someone might propose. |
| and ungodly regulations that don't necessarily prevent | | | | Who knows what could be next. But one thing is for |
| the building of new wells and drilling sites and even | | | | sure, when it comes to Congress you never can tell. |
| refineries, but certainly are not making the option to | | | | Today it is the oil investors. Tomorrow it is something |
| build them an attractive one. | | | | you are invested in through retirement accounts just |
| Enter the investors. As demand increases faster than | | | | hoping and praying to make enough money to retire on |
| supplies of oil and refined petroleum products they can | | | | because God knows those government retirement |
| buy contracts for future delivery now at a lower price | | | | accounts are not doing too well. |
| than they will sell them at next month or even next | | | | If we let them take down the oil investors today, then |
| year. This is what investors do. They act on a | | | | ask yourself this question. Who will come to defend |
| resource where there is profit to be made. | | | | you when the same nebby bureaucrats come |
| Then those "pea brains in Congress" I recently | | | | knocking on your door demanding that you give up |
| referred to start getting nasty calls from their | | | | your right to make a living? Or a profit? Or a nice |
| constituents demanding something be done as the | | | | retirement? When the out of control federal |
| price of their gasoline goes up. And they do what | | | | government sticks its grubby little hands into your |
| politicians tend to do - they blame the investors even | | | | wallet, what leg will you have to stand on and claim |
| though the investors are doing absolutely nothing | | | | that it is unfair if you let them do it do someone else |
| wrong and only reacting to a situation Congress itself | | | | today? |
| has created. | | | | No, not in America. It cannot happen here right? |
| The investors are vilified as evil "speculators" and | | | | Do not be silly. It already has. |
| blamed for everything that cannot be blamed on Big | | | | |