American Elephants

The Democrat Congress Blew it Again. by The Elephant's Child

Democrats in Congress, and remember that this is a Democrat-controlled Congress, have been desperately searching for a fall-guy to blame for rising gasoline prices. They certainly don’t intend to accept any blame for refusing to allow drilling offshore or onshore, or new refineries, or nuclear plants; no, not their fault. Don’t blame them — it’s the evil speculators who are manipulating the futures markets.  Speculators were everywhere!

Oops! Unfortunately there is no evidence to support the conspiracy theories.  The Commodity Futures Trading Commission, in one of the most authoritative studies ever done, has presented hard statistical data that clearly indicates that financial trading has not been driving price moves.  The federal regulators looked at millions of transactions worth billions of dollars between January and June this year.

Congress held more than 40 hearings on “Speculators” over the summer, if you wondered what they were doing.  Something useful as usual.  The CTFC notes that the expansion of commodities indexing can be partially explained by investors seeking to protect themselves from inflation.  Which has been driven up — at least in part, by Congress’ refusal to allow drilling for oil.

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