Oil futures "Dark Markets" & how the prices are fixed

http://countercurrents.org/leopold20058.htm
John McBush is against the farm bill for a very specific reason. It contains regulation for the "Dark Markets". These are groups of investors/traders that have controlled commodities prices.

The scam works like this...overly large purchases & even outright fraudulent records of purchases are used to show an increased demand for a given commodity. These "Dark Markets" are totally unregulated & have operated as such since the collapse of Enron. Many of the people involved nowadays are former Enron traders who understand the strings which are to be pulled to manipulate prices.

This was the work of Senator Phil Graham who on X-mas eve on 2000-as the chair of the Senate Finance committee-Shoved through the infamous "Enron Loophole". McBush & company will do anything to kill that portion of the bill. It is hoped to have a veto proof majority but with this bunch...

For more info yesterdays WJ had Michael Greenberger on(former regulator under Clinton). He explains this all in great detail-in layman's terms.He was the 1st guest & will also testify before congress next week.

Synopsis...
The high pPrices are falsely raised by speculator trading amongst themselves resulting in the false perception of a shortage or increased demand of said commodities

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way to stop this is to re-enact the controls & oversight rules that USED to exist before Phil Graham managed to get them eliminated! I think the imte is right, and 90% of the Public would support their Congress Critter in a bill to do so. Since it's getting close to the Nov. election, and so many are up for re-election, they SHOULD be able to pass a veto proof bill!!!

The market needs to be de-Enronized.

If the people know what is going on, and they let congress know they are pissed off, congress will have to do something, and as you said, since it is an election year, there should be no problem getting even those who being bought and paid for by lobbyists to vote the right way for a change! If not then the people have the power to remove them come November. Of course we need to get started right now, and not wait till "after" the elections.

trains loaded with grain from Iowa and other mid-west states were bought for pennies a bushel - even 100 yrs ago a very low price and then circled Chicago several times each time accruing higher prices for the investors with each transit. This was written into a fiction by Frank Norris called "A Deal In Wheat". Check it out it is a short story so doesn't take much time to read and then become livid with the same tactic today with regards to oil.
But having said that it is important to know and be pro-active about the fact that the era of cheap oil and gas is over and we are going to have to re-invent our society because of it. We used to be such inventive and practical people in this country.
We need to think of ways to live that is much less car dependent. We also must encourage locally grown produce sales.
Lest anyone think I personally find this transition easy and have alternatives to using our car understand that we live in the country now and are both retirees. Our options are few as we go through this transition but we realize that it is going to happen whether we are prepared or not.
:dilemma:

Amazing how little is said about what's really going on here. It's the banks and large lenders making back all they lost in the housing bust and other failed ventures...and we're all paying through the gas tank. The house always wins. The game is played so quietly and outside the view of most people, it's hard for many to get their head around how this is happening and where its going.

The Enron loophole has been abused for years...letting the foxes run the henhouse and we're not supposed to be the wiser. If you're a stockholder, this loophole is money in your pocket. If you're a consumer, bend off...you're paying for their largess and greed.

Unfortunately, the banks have a lot of control on this game and on those who are supposed to regulate them. Many candidates on both sides rely on banking money, thus attempts to close this loophole will have a tough time making it through...even with Democrats in control...and be assured that his assholiness will veto and survive the override. The bottom line is this mess will go on through the remainder of this year or until the bubble bursts...either way, the consumers will get the short end.

I still predict oil prices will drop in September and October...for some strange reason (:sarcasm:) to make the economy look better than what it is. This game had been played by the GOOP in 2000 to make Gore look bad and now will try to turn it in the other direction to help Gramps.

I work in a wrecking yard so this is not my area of "expertise" but you are correct...Mr. Greenberger was an excellent host & I want to tape his appearance next week.

I did trade in collectables a while back-One collector cornered the market on a specific low volume model & the price skyrocketed. A small example but pertinent IMHO....

Frankly I learned more about "the markets" from E-bay than I could have ever imagined. I no longer sell-the fee's are too high but it was fun while it lasted. Thankfully the metals market-wich I rip cars apart for-is boomin. All I get out of it is low pay & job security. For now I'll take it!!

This was the preson who taught me how a market could be manipulated. In the late 70s and early 80s, he cornered the silver market...drove up prices that helped fuel the double-digit inflation that all but doomed Jimmy Carter. I've also seen it in my own profession...broadcasting...where large corporates speculated turning broadcast frequencies into pork bellies...driving up license prices and then playing stock games to profit on their assets as opposed to their actual earnings...they'd borrow and purchase more station and then their stock price would go up...despite taking on bigger debt and that many of the stations they were buying were dogs...but they were able to lock away more frequencies and keep their overall values high. It's only recently that bubble has burst...but the damage has been done.

I've played with collectables as well...and price manipulation is something you always watch out for...especially with Ebay. I've seen items that were bidded up beyond their market price to trap a fish...and then others would flood the market with a similar item trying to cash in that would then crash the overall price...everyone lost (except for Ebay and the original seller). As always, let the buyer beware. It sounds like you have a good handle on what you're doing, but I'm sure you know many who look more at making a quick buck and don't care how they make it.

Right now having security is a good thing...look at how many around here don't have it. I'm fortunate as well as I cashed out several years ago and there's no way I'd get back into things without a massive readjustment not only of the market but of the entire government "regulation" system. While I don't want the government to dictate prices or prevent the market from seeking a fair level, the lack of regulation, as Mr. Greenberger pointed out, has destroyed the concept of a fair market.

Cheers...

I just heard his name on the radio while at work & damn...I shoulda connected the dots.
Don't let this die please...