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As Americans watch their wallets empty as quickly as gas prices climb, we all search for answers. Some experts say the seemingly endless rise in gas prices is being driven largely by oil speculation, the practice of buying and trading oil futures -- in an attempt to predict the cost of oil at a later date. Should you blame speculation for your pain at the pump?
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Speculation does!!
Evidence
Do you have any evidence for these numbers whatsoever, or are you just making up estimates?
You say "at least 50% of the price of oil during the rise" -- why did you pick that number? Why do you predict $40/barrel oil? Why is a 0.25% tax enough to counteract the effects you assume exist, and by what mechanism do you suppose it would have the effect you want?
- thoughtcounts Z
October 30, 2008 9:14AM
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Speculation does!!
It's a SWAG but based in facts.
The main one is about$60/bbl all kinds of alt energy becomes viable.
For instance ethanol, gas/biomass/coal to liquids, oil shale, solar, wind, NG,ect and electric cars. Had the huge subsidies not been in oil we would have diversified from oil yrs ago when we hit peak US oil in 73. Shortly we'll have those costs in oil and oil will be more stable in price.
But it's the steep rate of rise, fall that pegs it to speculators. What happened was the housing bubble was ending and all that money had to find something else to invest in so turned to commodities like oil which were in tight supplies because of the other bubbles also growing.
And that went on until $4/gal gas, the credit bubble, others burst, sending the speculators for the exit on oil, other commodities, dropping it way down. It will hit $50/bbl and maybe down to $40bbl.
But we are at peak oil now so as the economy improves unless we really change our energy policy, use, the price of oil will get bid up by speculators again in about 18 months or so to probably a $200/bbl in 2-3 yrs.
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On the 1/4% on all securities trades will eliminate all those gamblers who bet on small changes instead of betting for the long haul which is much better for the country, making these corrections much lighter. It will also pay their social cost and the cost of regulating them. As you can see the costs can be quite high.
Luckily I don't have to worry because I use little oil as I drive an electric sportwagon that gets 250mpg fuel cost equivalent. I had to build my own because the 'free market' wouldn't. My total costs are about $.10/mile so actually make money on the mileage deduction ;^D. Many thousands of other EV's drive daily by others who converted cars, pickups, MC's, restored the few older EV's or built them from scratch. Google EV clubs, EV racing for details, links.
There are plenty of alt to oil if we just try. Our national, economic security demands it or we'll be broke slaves of OPEC, Russia and in constant wars over oil as we are now. It's basic econo 101.
jerryd
- jerryd
October 31, 2008 5:11AM
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