The Prius Liberal

Michael Masters of Master Capital Management, LLC (a global investment management company) testified before the Senate Committee on Homeland Security and Governmental Affairs just a couple of weeks ago. Here are quotes from his testimony:

"Today, Index Speculators are pouring billions of dollars into the commodities futures markets, speculating that commodity prices will increase. In the popular press the explanation given for rising oil prices is the increased demand from China. According to the DOE, China's demand for petroleum has increasde in the last five years from 1.88 billion barrels to 2.8 billion barrels, an increase of 920 billion barrels. Over the same five year period, Index Speculators' demand for petroleum futures has increased by 848 million barrels. THE INCREASE IN DEMAND FROM INDEX SPECULATORS IS ALMOST EQUAL TO THE INCREASE IN DEMAND FROM CHINA. Index Speculators have now stockpiled, via the futures market, the equivalent of 1.1 billion barrels of petroleum, effectively adding EIGHT TIMES as much oil to their own stockpile as the US Government has added to the Strategic Petroleum Reserve over the last five years."

"The Senate has asked the question "Are Institutional Investors contributing to food and energy price inflation?" And my unequivocal answer is "YES." In this testimony I will explain that investment banks are one of, if not the primary, factors affecting commodities prices today. Clearly, there are many factors that contribute to price determination in the commodities markets; I am here to expose a fast-growing yet virtually unnoticed factor, and one that presents a problem that can be expediently corrected through legislative policy action..."

The US Commodity Futures Trading Commission is ASLEEP AT THE WHEEL. They are supposed to be protecting us form these kinds of abuses, but Bush has allowed loopholes in the CFTC regulations that you can drive a truck through. An oil truck, that is.

Here is a link to the Michael Masters' testimony before the Senate:
http://hsgac.senate.gov/public/_files/052008Masters.pdf

And here are two other articles on the subject:
http://www.informationclearinghouse.info/article20011.htm
http://globalresearch.ca/index.php?context=va&aid=9138

TYLER - The price of oil swelled to another record high Monday morning - before dropping back. It almost hit $140 a barrel - but then fell 25 cents. It appears - a recent increase in oil output from Saudi Arabia -- is not driving down crude prices. Former Speaker of the House, Newt Gingrich, who started a bipartisan group called "American Solutions for Winning the Future" held little back at the Texas Republican Convention. He wants to use American solutions to change to the U.S. energy policy.

Simply put - he's fed up with Congress: "The problem is not big oil or the foreigners," said Speaker Gingrich. "The problem is not the Saudis. The problem is getting Congress to do it's job." And that job, he says, is to start using the energy we have. "Congress outlaws every conceivable energy source," said Speaker Gingrich. Gingrich is making his case for domestic drilling by launching a campaign with Actor Chuck Norris, with the slogan: "Drill here, Drill now, Pay less." The campaign is urging Congress to do something now to bring down gas prices. Speaker Gingrich also has thoughts on speculators. "It's people who are betting the U.S. is too dumb to produce (its own oil)."


He sides with East Texas Congressman Louie Gohmert -- when it comes to speculators and drilling. "If you began selling off two million barrels a day...we can pump out of the Strategic Petroleum Reserve. It would immediately bring down the price of oil." Speaker Gingrich proposes selling off half of the reserve - now. "Do it suddenly..without telling anybody in advance and punish every speculator."The very speculators, he says, that are betting against America."

GO TO WWW.AMERICANSOLUTIONS.COM AND SIGN THE PETITION !!!