![[dr. bob]](/dr-bob-sm.gif)
Dr. Bob is Robert Hsiung, MD,
bob@dr-bob.orgShown: posts 1 to 4 of 4. This is the beginning of the thread.
Posted by Sigismund on July 23, 2008, at 18:01:49
Some clever technically minded person might be able to comment on this....
http://www.stopoilspeculationnow.com/uploads/An_Open_letter_to_All_Airline_Customers.pdf
Particularly, this assertion
>Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs
It might be possible to understand this and yet be unable or unwilling to explain it. And if you did, would I understand it?
Posted by caraher on July 23, 2008, at 21:48:08
In reply to Oil futures and whatnot, posted by Sigismund on July 23, 2008, at 18:01:49
It sounds quite plausible; I have heard elsewhere that speculation is a much bigger factor than scarcity in the recent elevation in fuel prices.
I'm fascinated, however, at the letter signed by all those airline CEOs. It's pretty rare to hear any CEO calling for any kind of government regulation these days. Though I'm sure they're just one job change away from a renewal of boundless faith in the invisible hand.
Posted by caraher on July 23, 2008, at 21:57:10
In reply to Re: Oil futures and whatnot, posted by caraher on July 23, 2008, at 21:48:08
I can't explain things more clearly than this does (?!):
http://www.salon.com/comics/boll/2008/07/24/boll/
Well, it's in cartoon form at least...
Posted by Sigismund on July 24, 2008, at 22:52:10
In reply to Re: Oil and economics explained, posted by caraher on July 23, 2008, at 21:57:10
Thank you for that.
I understand it all clearly now.
We privatise the profits and socialise the losses too.
Here is an Australian cartoonist
http://i6.photobucket.com/albums/y238/ninglun/E201090420leunig-web.jpg
This is the end of the thread.
Psycho-Babble Politics | Extras | FAQ
Dr. Bob is Robert Hsiung, MD,
bob@dr-bob.org
Script revised: February 4, 2008
URL: http://www.dr-bob.org/cgi-bin/pb/mget.pl
Copyright 2006-17 Robert Hsiung.
Owned and operated by Dr. Bob LLC and not the University of Chicago.