All doing the run up in oil and commodity prices, I've held to the belief that the rising prices were do to increased demand for fuels, raw materials and food. Just a few days ago I received an email with the transcript of the testimony of Michael W Masters before the Senate Committee on Homeland Security and Governmental Affairs, last month. Mr. Masters is Managing Member/ Portfolio Manager of Masters Capital Management, LLC.
Basically, Mr. Masters laid out the claim that the escalation of the commodity prices was do to big investors getting into the commodities futures market and inundating the system with huge amounts of money. As the demand for these futures contracts grew, spurred by these investments, so did the price of the contracts. His testimony gives specifics of several commodity futures markets; enough that I am persuaded that he is right and I was wrong. Please read all nineteen pages of the transcript.
Last week, Senator Joe Lieberman, Chairman of the Senate Committee on Homeland Security and Governmental Affairs announced he would hold hearings on commodities speculation and propose next week to ban large institutional investors, including index funds, from the nation’s booming commodity markets.
Interestingly, McBush, et.al, are pushing for opening ANWAR and drilling for oil off the coasts of Florida and other southern coastal states, while at the same time evidence riclkles out that speculation may be the culprit behind skyrocketing gasoline prices.
And now, if you still need to whet your cynicism, we find out that Big Oil will be awarded concessions in Iraq in a no-bid sweetheart deal.
The "Iraq Invasion for Oil" conspiracy crowd will now be telling us, "I told you so!"
"I'm telling you that President Bush is doing just what Jesus would have done." -- Bill O'Rielly
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