Inflation, Deflation--or Both? | Newsweek Newsweek - Robert J. Samuelson

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Posted By: gvillagran3 @ 06/10/2009 10:37:46 AM

It would be nice if Mr. Samuelson, and Newsweek provide us with a good article about what's the Obama administration doing, or not doing to stop un-regulated speculative trading in the Over the Counter futures market.

Why is this problem not mentioned more often in the media? Why is there not a constant stream of news comming from the fact that the futures market for commodities such as oil ARE FIXED? Why is there not more attention beeing paid by the media, and the government to the fact that big players in the futures market like oil for example can, and do influence the way the prices go in absolute disregard to the laws of supply, and demand..... Not to mention absolute disregard to any regulatory agency?

Is it too much to ask for Newsweek to point out to it's readers to understand that when trading volumes are low, the futures markets can be influenced by a few big players as is the case of gold, and oil. The Arab kingdoms, in convination with banks such as Goldman Sachs are in fact what's driving oil up, not demand and hardly any American understands that.

Why can you inform the public that while gasoline is going up as a result of oil increases, misteriously Diesel is not following that trend? Why can't you make Americans understand that gasoline is going up because of the simple reason that we are traped in our vehicles, and the need we have to use them on our daily lives. While Diesel represents real economic activity, or lack of it , and therefore it can't go up as much, or as fast and risk an absolute economic collapse.

Americans need to wake up to what is going on and demand results not words from their representatives. We need strict regulations for the Over the Counter Futures Market. We are re-living the days of the Hunt brothers cornering the silver market every day now in the oil futures market. The difference is only that the Hunt brothers went to jail for doig it, while today's version of the infamous brothers, go to the Caiman Islands to deposit their enormous fraudulet profits while they tan at the beach.
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  Posted By: bighappy @ 06/10/2009 11:54:42 PM
  
  Oil gows up becouse dollar is going down. Oil is priced in dollars, and buyers agree to pay higheer price because they know that dollar will be devaluated more in near future. No speculation on price fixing is needed. Besides, it is the first sign of coming inflation.

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Posted By: rho1953 @ 06/09/2009 6:02:12 PM

So how do you explain the radical rise in oil prices while there is a glut, when demand is down? The price of oil will show up in everything and that;s before this greedy administration raises taxes on literally everything.

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Posted By: gvillagran3 @ 06/09/2009 2:44:52 PM

One very important factor not contemplated in this articles is the effect that day traders in the futures commodity markets have in prices, and therefore on inflation.
Increasingly we can see the disconect between good old demand vs. supply Capitalism, in favor of naked speculation by day traders in the futures market. In this world, fundamentals do not apply, just greed . Case in point is the fact that oil prices have sky rocketed from a low of $35.00 /barrel February 2009) to the present $70.00/barrel in just 3 months..... With an over supply of oil in the market !!!!!!

The same can be said for a bunch of other commodities . Unless we can put firm controls to the Over the Counter markets, our economies will be at the mercy of a bunch of sharks out to make a fast buck from our ignorance. Our Capitalsit system can not continue to perform under the system that the commodity futures markets operate. New regulations are needed so that our Capitalism system is re-established, and the laws of supply, and demand are observed again.

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Posted By: bighappy @ 06/07/2009 1:40:45 AM

Thanks to insane spending, stagflation is on the horizon. And it will not be 7/7 - more likely it will be in best case 12/12 (12% unemployment and 12% inflarion). Only one thing saving us from inflatioon right now is the sepcial dollar status. As soon as dollar is in free fall because of huge oficial debt (starting now) - others currencies will take over, and american people will get what they deserved by electing extremists.