13 June 2008
News and Comments – 06/13/08
Posted by Joy Bischoff under: What's News .
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12 Comments so far...
Jesse Says:
13 June 2008 at 1:06 am.
US regulator CFTC calls for curbs on oil trading in London
Suzy Jagger in New York
A rift has opened between regulators in Washington and London after the Americans called for restrictions on oil trading in the City.
It is understood that the Financial Services Authority (FSA) is resisting calls by the US Commodity Futures Trading Commission (CFTC) to introduce daily price limits on some oil futures contracts.
The Americans also want to cap the amount of particular oil contracts that a trader can hold. The moves would limit the ability of a trading firm or individual trader to corner the market in one type of futures oil contract.
The price cap measure, which exists in American energy markets, has been devised to stem sharp rises in the price of a particular commodity. However, London regulators believe that the market should determine the price of an asset, rather than it being limited by a daily price cap.
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article4124552.ece
Cavetrollhead Says:
13 June 2008 at 2:16 am.
Well this is just what I want to vent about, Jesse and I must opine.
Correct me if I am wrong here. Oil is not the same as other commodities. For example I don’t believe it truly belongs to any one individual when it is gotten on US soil. Oil belongs to the nation. I think that even if you strike oil on your own property, you won’t own that oil if you don’t have mineral rights to for that property. Mineral rights are bought separately from most land purchases. This stems from the recognition that the vital resources of the nation or state belong to all, unless the right to them is seperately purchased.
Therefore it is not without precedent for our government to claim oil as a public commodity and therefore to regulate it. So therefore it should not be a big leap to suppose that any oil coming into the US should be a federal concern as well. It is a national security issue and should therefore supersede principles of private property and so on.
Think of steel during WWII. In late 1942 created the “Controlled Materials Plan,” which effectively allocated steel, aluminum, and copper to industrial users. Also, the Office of Price Administration was created and through a policy called General Max (General Maximum Price Regulation) controlled inflation during WWII. Why, because the federal government saw it as its mandate to control prices during war. We are in a similar situation now, but we do not control our own economy when it comes to oil, but leave that control in the hands of foreign bodies like the FSA and even terrorism sponsoring countries. A problem here is that the FSA seems to think that free market is more sacred than anything else. And since the FSA is not ours, we can’t force our will on them.
And conservatives are confused on the role of government here. I am not. The feds need to force the price of oil down BY ANY MEANS in their power. IN THIS CASE, national security and domestic sovereignty trump the principle of A free market.
Another thing, monopolies and collusion to raise prices are never allowed in the U.S. The high price of oil is ironically almost directly tied to the low cost of oil production. Oil is dirt cheap as a source of energy. Any company could produce oil in the US for much less than $30 a barrel. Big oil can do much better. Upstarts will be put out of business by big oil, who can lower the price enough to put anyone else out of business. They have done this to every upstart oil company in the past. When the competition is eliminated, the raise the price again. This is just one of many ways the oil companies collude. The federal gvt needs to set a MINIMUM price for oil as well to prevent this from happening.
My rant has just scratched the surface, but I will stop for now. One dimensional conservatives who put free market as paramount even at times of war, drive me crazy.
Cavetrollhead Says:
13 June 2008 at 2:22 am.
It occurs to me that you might want to have sources for that info, so I have looked one source quickly.
http://eh.net/encyclopedia/article/tassava.WWII
I pulled the above rant out of my brain quickly and late at night. So if you can correct me on the facts or on my anger-generated arguments, please do.
Cameron Says:
13 June 2008 at 6:01 am.
Paranoia or propaganda?
Myanmar says US aid can’t be trusted Fri Jun 13, 3:39 AM ET
YANGON, Myanmar – As individuals and aid agencies around the world dig into their pockets for funds to help Myanmar’s cyclone victims, the country’s ruling junta said Friday that such assistance from the United States could not be trusted.
State media has previously said Myanmar feared Washington was using the cover of humanitarian aid to invade the country and steal its oil reserves.
The suspicion continued Friday, when a media mouthpiece for the regime warned that “the goodwill of a big Western nation that wants to help Myanmar with its warships was not genuine” — a clear reference to the U.S.
Myanmar rejected humanitarian aid aboard naval vessels from the U.S., Britain and France, which sailed toward the Southeast Asian nation after Cyclone Nargis struck May 2-3.
http://news.yahoo.com/s/ap/20080613/ap_on_re_as/myanmar
Mac Says:
13 June 2008 at 9:03 am.
Cave, I have struggled with that because we are fed so much of the free market line that it is hard to go against it. Thanks so much for clearing it up for me. What you wrote makes so much sense. This situation is such a threat to our country and individual well being. If only congress could get the message.
Cameron Says:
13 June 2008 at 9:13 am.
Inflation rate jumps 0.6 percent in May, reflecting higher energy prices
WASHINGTON (AP) — The inflation rate shot up in May at the fastest pace in six months, pushed higher by soaring costs for gasoline and other types of energy.
The Labor Department reported Friday that consumer prices rose by 0.6 percent last month, the biggest one-month increase since last November, as gasoline costs surged by 5.7 percent. Food prices, which have also been rising sharply, were up 0.3 percent as the cost of beef and bakery products showed big gains.
Core inflation, however, which excludes energy and food, edged up a more moderate 0.2 percent in May. That increase was right in line with expectations and should help relieve worries that the big increases in food and energy could be breaking through to more widespread inflation.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, said that the moderate gain in core prices showed price pressures are remaining contained despite fears at the Federal Reserve.
The Fed, which from September through April was aggressively cutting interest rates to fight a mounting economic slowdown, is now indicating that its biggest concern has changed from the threat of a recession to worries about inflation.
In a speech Monday, Fed Chairman Ben Bernanke said that the Fed will “strongly resist an erosion of longer-term inflation expectations.” Those comments have raised expectations that the Fed’s next move later this year will be to start raising interest rates.
Angela Rogin Says:
13 June 2008 at 10:02 am.
Cave, I agree with Mac. What you wrote helps put things in perspective for me too. Thanks.
Pickles Says:
13 June 2008 at 11:23 am.
Makes sense and I like the idea because I want something to be done about the problem. It is getting irritating to drive because it is so stinking expensive.
Concerned American Says:
13 June 2008 at 11:27 am.
This is terrific. The Irish people said no to losing the rest of the sovereignty to the new nation of Europe. Good for them. Still, I figure the EU will find a way around it. They won’t be stopped in their progress towards globalism.
http://news.yahoo.com/s/ap/20080613/ap_on_re_eu/ireland_eu_referendum
Ireland rejects EU reform treaty with 53.4 percent “no” vote
DUBLIN, Ireland – Electoral officials say Irish voters have rejected the European Union reform treaty with a national “No” vote of 53.4 percent.
The blueprint for modernizing the 27-nation bloc cannot become law without Irish approval and its defeat is a major blow to the EU.
Rural and working-class voters heavily rejected the treaty to modernize the EU’s powers and institutions in line with its rapid expansion since 2004.
Ireland was the only EU member to seek to ratify the Lisbon Treaty through a national referendum. All others are doing so only through their national governments.
Irish Prime Minister Brian Cowen will join other EU leaders at a summit next week to try to negotiate a new way forward.
T. Fan Says:
13 June 2008 at 12:45 pm.
At least some people are waking up to the reality of the push for a one world government.
Matt Says:
13 June 2008 at 1:49 pm.
This is so cool. Way to go Ann.
New law prompts Calif. county to halt all weddings
BAKERSFIELD, Calif. – Heterosexual couples are rushing to get married in a conservative California county that plans to halt all civil wedding ceremonies as gay marriage is set to be legalized.
Kern County Clerk Ann Barnett says Friday is the last day the county will perform civil weddings.
Starting Tuesday, when the California Supreme Court’s order legalizing same-sex marriage takes effect, Kern will issue new gender-neutral marriage licenses as required by law. But couples seeking to get hitched will have to go somewhere else for the ceremony.
Barnett says the increased demand for ceremonies would overwhelm her staff and pose office security risks. She made the announcement after learning she could not marry only couples of her choosing.
http://news.yahoo.com/s/ap/20080613/ap_on_re_us/gay_marriage
Cavetrollhead Says:
13 June 2008 at 2:07 pm.
Cameron,
This Myanmar story really hurts to read. I told the story a while back about my Wife’s grandmother who insisted the US was trying to poison her with their humanitarian aide. What set her off was the salt in the butter. It didn’t taste like good butter to her. She insisted that the salt was poison. Same kind of blind conspiracy theory being pushed to the people in Myanmar. The Junta (like the Ukrainian gvt. of early 90s) are trying to keep the hearts and minds of the people through lying propaganda.
Concerned American- that is great about the irish. Thanks for sharing.
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