Rush, wouldn’t you much rather see the true price of commodities based entirely on those that consume products and those that produce products?
You jump all over the government for making money off of our oil when they do nothing to produce the oil we use. Then why not condemn the actions of those speculators who make money off of the very same oil without any effort to produce it or take delivery of it and refine it for distribution?
A true market place is one where those that consume products and those that produce products come together decide on a price and then part. If the amount of products demanded by the consumer is more than a producer’s supply then the price should rise slightly or until supply meets demand.
Speculators create an artificial demand that causes price increases. Those that pay the price for this artificial price rise are the consumers. There was a time in this country when this type of activity was frowned upon. Remember the Hunt brothers when they tried to corner the silver market?
I am not in favor of government interference but I am in favor of providing protection for the “general welfare” of its citizens. Protecting the basic needs of its citizens provides a foundation to the health and well being of the American people so that they can perform their daily duties in the continued building of the greatest economic engine the world has ever seen.
Product pricing should be based purely on the cost of production plus profit margin period! If a producer cannot make money at current price levels then he has to adjust his pricing. If the new price is higher than a competitor which would make him un-competitive then he should fold up his tent and go home or make the necessary adjustments to be more competitive.
The speculation in stocks and bonds has no real affect on product or service pricing. So let the speculators confine themselves to the stock and bond markets.
Tom Millican
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