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 Sciences: High Fuel Prices? It's The Investors, Stupid!
Posted on 2008-05-30 @ 23:46:46 by r00t

As a resident of Arizona, I recently heard about Senator Jon Kyle's opinions on why we have high gas prices. The following URLs shed light:

'Cause-and-effect' behind high gas prices (new window)

Dollar Value Down, Gas Prices Up (new window)

I disagree with this, and if you continue reading, you'll see why...

These high prices aren't due to taxes, they aren't due to demand, and they aren't due to a weak dollar. While all of these reasons (and others) definitely have some impact, the actual reason for the high prices are due to loopholes in the futures trading rule for oil and energy markets.

This information was presented to the Senate by Mr. Michael W. Masters, of Masters Capital Management LLC, as testimony before the Committee on Homeland Security and Governmental Affairs (United States Senate), on May 20th, 2008.

Read the Testimony Yourself (new window)

I have contacted via email both Senator Kyle and our governor, Janet Napolitano, about this issue. To ignore this is to ignore what a lot of people already suspect: the market is being manipulated by investors via loopholes in the system, at the expense of average citizens (to be fair, many of those same citizens have investments in these funds). Close these loopholes, and you can go a long way toward fixing the problem.

The question is only when will it be done - before or after the US economy is in shambles?

I can't wait to receive the form-letter replies - they should be informative - yep...

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