If the compression underway due to trickle-down economic policy is not at this point stopped and reversed with simple, direct and decisive measures, the trend will be a hardship of highly unacceptable depth and breadth.
Capital becoming evermore consolidated and churned through commodities exchanges has to stop now!
Taxing the benefit, instead of giving it favorable treatment, will stop the speculative churn and consolidation of disposable income. The reduction in the price of oil will begin the reversal of the deflationary trend. Retributing the value back to the consumer will magnify the reversal and strengthen the dollar.
Everybody, even the speculators, will benefit. Speculators will be in a stop-and-reversal investment mode that generates a capital gain, it just won't be at the expense of economic growth, but to promote it.
This is what we need to do NOW!
If we don't, the consequences will be exceptionally bad, and if that detriment has not trickled-down to you, it's headed your way, soon to be very close up and verifiably personal.
The solution is simple, pragmatic, easily executable, and Strong Pareto Optimal. There is no excuse for not doing it unless we are to be impractical slaves to ideology. Pro-growth is not a matter of ideology, it is a matter of pragmatically doing the right thing...just like Obama has to say about his approach to politics and policy, and that's worth voting for!
Very best wishes.
Showing posts with label speculative demand. Show all posts
Showing posts with label speculative demand. Show all posts
Wednesday, July 2, 2008
Thursday, June 26, 2008
Blaming Oil Speculation is a Distraction
According to Carlos M. Gutierrez, Secretary of the U.S. Department of Commerce, the voice of business in government, blaming the price of oil on speculation "is a distraction" to focusing on demand reduction and adding supply.
It just happens to be that the overwhelming volume of a consolidated capital holding over 70% of oil futures contracts for non-delivery (for speculative purposes) is not being invested in adding supply.
The speculative investment is, however, reducing demand by deflating the economy. The official Republican administration policy, including John McCain, is that the trickle-down economics driving the demand reduction is supply-side economics.
That would be false by the most obvious measure of the evidence used to support their hypothesis: that the price of oil is due to a fundamental lack of supply.
You would think neo-conservatives are intelligent enough to come up with something that at least resembles a convincing argument.
Remove the consolidated capital from the speculative demand, reinvest it in adding supply (economic growth), and this "fundamental" problem of not properly organizing to add supply, but to restrict it, goes away.
If you want economic growth, if you want to grow your business, join the coalition for Obama!
Very best wishes.
It just happens to be that the overwhelming volume of a consolidated capital holding over 70% of oil futures contracts for non-delivery (for speculative purposes) is not being invested in adding supply.
The speculative investment is, however, reducing demand by deflating the economy. The official Republican administration policy, including John McCain, is that the trickle-down economics driving the demand reduction is supply-side economics.
That would be false by the most obvious measure of the evidence used to support their hypothesis: that the price of oil is due to a fundamental lack of supply.
You would think neo-conservatives are intelligent enough to come up with something that at least resembles a convincing argument.
Remove the consolidated capital from the speculative demand, reinvest it in adding supply (economic growth), and this "fundamental" problem of not properly organizing to add supply, but to restrict it, goes away.
If you want economic growth, if you want to grow your business, join the coalition for Obama!
Very best wishes.
Wednesday, June 11, 2008
Buyer for Every Seller
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
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
Subscribe to:
Posts (Atom)