I just posted the following response on another blog:
I would expect nothing more from a liberal. Blind ideology. No facts, no data, no empirical evidence. Just pure opinion stated as if it were a fact. Just quoting testimony before Congress doesn’t mean that the testimony is factual. You conveniently omit all the contrary testimony in a selectively opinionated manner.
Often, the “blame-the-speculators” crowd will cite the existence of large funds as a priori proof that they cause prices to increase. This is like saying that because one sleeps in the garage, one must therefore be a car. WRONG! The fact is that coincidence is NOT causality.
All the data, all the facts, and all the empirical evidence suggest that speculators are not the cause of high energy prices.
No credible analysis suggests that China and India are the SOLE causes for the rise in crude oil. There are numerous reasons, all of which together represent not just one or two, or even three or four, variables contributing to higher fuel prices. They are a perfect storm that almost guarantee high prices for energy.
Only two sources have factual data — the CFTC and the futures exchanges. Both have repeatedly released the data that indicate that speculators have not been the cause of high fuel prices. They have repeatedly used the facts and the data to disprove the OPINION of Mark Cooper of the CFA who you quoted. Why did you not quote THEM? They have the data! Why do you ignore the facts and the data? We both know it is because the facts don’t support your opinion.
During the past year, speculators have been reducing their size and positions in the market, while prices have skyrocketed. The commercials, who take physical delivery and use the oil in their products, have increased their presence. That’s the fact, and it doesn’t support the opinion that speculators cause high prices.
Speculators are outnumbered by a factor of 5:1 by commercials in the crude oil markets. Of those 20% who are speculators, the CFTC and exchange data indicate that at any given time, about half the speculators are short. Thus, the speculators who are long represent only about 10% of the market. Hard to manipulate the market with such a small position, isn’t it? But that’s the fact.
The fact is that the futures markets are already amazingly transparent, despite OPINIONS that they aren’t. All companies in the market of a certain size or larger must already file various reports, making their size and positions in the market very clear. This data is gathered and published weekly by the CFTC. That’s the fact.
There are more facts, but somehow, regardless of the facts, I suspect that those who ignore those facts won’t really care that the facts and the data don’t support their OPINION.
The fact is that one of the variables, in addition to the China/India factor, is the blunt coercive banning by a liberal-controlled U.S. Congress, of additional domestic production of increased capacity in the U.S. Government policy is a factor that, unlike speculators, IS contributing to higher oil prices. It is not coincidental that over the past two years, during which time such policies have been amplified, crude oil prices have risen, while domestic oil production continues to fall.
It is also a fact, as stated by a few shameful but honest liberal policy-makers, that one of their methodologies for imposing their Global Warming Inquisition, is to block additional production with the intent that it will drive prices higher and speed the transition to renewable forms of energy production. That’s a fact. This is a blunt, coercive, and sickeningly shameless was to control the American people.
The fact is that another variable — gross and unbridled overspending supported with Kenesian economics and bloated M3 money supply creation — is devaluing the U.S. Dollar and inflating the price of crude oil and other commodities. When those commodities are priced in the world markets in Dollars, and those Dollars are being devalued by devastating monetary policy, prices will continue to go higher. They HAVE to! It simply takes more Dollars to buy the same quantity of oil. Both Republicans and Democrats in Washington are equally responsible for this contributing factor to higher prices."We're all Keynesians now," Nixon said. Sure enough!
The fact is that this year, Congress has mandated that 1/4 of all corn production in the United States MUST be used in ethanol production. When 1/4 of the largest agricultural crop in the world is diverted into one use by congressional fiat, it has far-reaching ripple effects. For example, as farmers convert more and more acreage to corn production because of the higher prices, less acreage can be used for production of wheat, tomatoes, potatoes, and all other agricultural food products. That causes food inflation, not just corn inflation. That’s the fact!
These three causational factors, interestingly enough, were created by Congress. Congress is perhaps the single largest causational factor in creating higher oil prices. But since when does a politician take responsibility for inflation — or anything else, for that matter? (Obama can't seem to bring himself to admit he was wrong about anything, including the surge in Iraq. Obama speaks with silver tongue -- and it's forked in the middle. I was wrong about the surge in Iraq. I was opposed to it. I was wrong.) Thus, they point the finger of blame elsewhere, because they know that THEY and their policies are the true causes. By distracting the finger of blame from themselves, they protect what they really want — POWER. They are more interested in power and party, than in helping the American people become energy self-reliant.
I could go on and on, but frankly, it’s time to trade. Time to make a living.
The fact is that blaming speculators will not add one barrel of oil to global production. It WILL add to prices!
