Buyer for Every Seller
Futures markets figure prominently in the discussion of the price at the pump.
Futures markets are supposed to be a means of hedging the price of commodities so a business has an even price-input risk. It also allows for a farmer, for example, to have a buyer at any time. Futures are used that way.
Arbitrage, however, also enters the futures market and that's why it was allowed to be unregulated along with all other aspects of the financial sector; and combined with allowing a high concentration, consolidation, of capital, the result has been a PREDICTABLY severe liquidity crisis (not enough capital to drive growth).
Capital is being used to buy and sell the existing supply, and because the supply is being reduced while demand increases along with an inequitable, consolidated, bid on the price, the price of commodities is magnified, distorted, even more. This is happening with both food and fuel and being explained as market fundamentals.
Let's just call it for what it is since we are paying a premium for food and fuel that is supposed to add supply. Attributing the high-demand price, the high premium, to market fundamentals is just an outright lie! It is the product of criminal behavior, and needs to be prosecuted as a knowing and willing fraud in the marketplace.
Let's see, so in the name of global economic development, we are shipping our raw materials to Asia, increasing energy demand; manufacturing a cheap finished product, increasing energy demand; shipping the product back to the US, increasing energy demand while we lose our jobs, reducing purchasing power; we lose our small businesses, reducing purchasing power, supply of employers and the tax base.
Yes, the market has been fundamentally organized into a whipsaw. Demand has been organized to outpace the supply of energy and the supply of employment to deliberately produce a slow growth (uncompetitive) economy of deprivation, and we are being told it is the result of a natrually competitive global economy. It is just an outright lie!
Taxing the beneficiaries is no gimmick! If you want to see gimmick, look at the way the global economy is organized and explained away as a free market economy. Deconsolidate the accumulation of the capital that has been organized by a global command economy and we can have a free market with the legitimacy of market fundamentals. Until then, we are operating with a pack of lies.
Changing this organized tyranny is not difficult once we get past the lies and deceit.
Build the coalition for Senator Obama to be the next President of the United States!
Yes, we can!
Very best wishes.
tags:
market fundamentals,speculative demand,global economy
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