Trading Away Our Future

Now they’re telling us that the weakening dollar is raising oil prices. (The “price” of dollars fell 0.2% Tuesday while crude oil prices rose over a percent.)

Bogus. Oh, yeah, it could be true, but it’s really a smoke screen for speculators to bid up the price. Because the fundamentals—i. e., supply and demand—point toward lower prices. What fundamentals? The world is currently afloat in oil, and demand is weak. Through manipulation of buying and selling, international speculators seesaw commodity prices to make money.

There’s a basic flaw in the entire commodities market. It adds no value. It’s just people buying and selling futures (that is contracts to deliver commodities at some future date) to make a buck.

These people don’t produce anything. In fact, they never actually take possession of the commodities. (Where would they put a ship full of oil?) No, they just buy and sell derivatives, not the underlying commodity, to make money. All they do, in the long run, is raise prices. For no added value.

Think of leeches. Clinging to the body of its host, producing nothing, but injected added costs into the process, ultimately forcing us to pay more for every product we buy which is produced from a commodity they trade: oil, orange juice, grain, meat, metals. You name it.

Forget occupying Wall Street, shut down the Chicago Board of Trade.