Food and Energy Prices Cause CPI to Increase 5.6%, But Why???

So, let the finger pointing begin in the blame game over why the Consumer Price Index has increased an annualized 5.6% this year.  The neo-nut right wing rethuglicons will obviously place the blame at Obama’s feet and drag labor unions into the mess, while the weak-kneed democrats will dither and hide.  But an honest analysis will come up with the one prime culprit and it has nothing to do with middle-east tension, labor unrest, or global warming (except for perhaps the recent Latin American coffee bean price increase) and that culprit is:  WALL STREET.  “These Wall Street guys, they’ll change the rules around so [the bill] will get neutered,”  [said] Sean Cota, an oil supplier in New England. 
  “I think Wall Street feels that it owns government.”

Ed Shultz covered the speculators on Wall Street’s responsibility for the spike upward in food prices here

The Wall Street speculators responsibility for the increase in oil prices was covered today in THE DAILY BEAST (don’t count on the Commodity Futures Trading Commission or the new Dodd-Frank financial reform package to give us any relief):

Libya should get the blame for rising oil prices, right? Wrong. Oil speculators who have nothing to do with actually extracting oil account for a huge part of the marketplace, says Paul Kix.
Oil speculators–the bankers, hedge-fund guys, and other moneymen who buy and sell oil futures contracts without actually extracting oil–account for a huge part of the marketplace. Stephen Schork, an energy-market expert who writes the Schork Report newsletter, said earlier this month that speculators now own on paper nearly six times as many barrels of oil as can be stored at the West Texas Intermediate, the nation’s biggest trading facility. What’s more, speculators continue to bet that the price of oil will rise: they have twice as many long contracts open today as they did in 2008, when oil hit $147 a barrel.

About ItheMissingLink

Retired longshoreman at the Port of Seattle. US Navy veteran 9 patrol FBM nuclear submarines; married 29 years
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4 Responses to Food and Energy Prices Cause CPI to Increase 5.6%, But Why???

  1. tim074 says:

    After the way they are trying to control the oil prices & what they did to agriculture, banking and insurance, auto industry, & after watching the movie “Inside Job” by Charles Ferguson who won an academy award, you can easy see why Pres Obama should do something and quick.

    • @Najeena62 and I watched INSIDE JOB last weekend. It’s very obvious that no Tea Party Terrorist or Rethuglicon has watched it or there would be a much louder cry for the Day Of Rage on September 17. Banksters and Wall Street thieves must get the message loud and clear that they are part of the tax-paying citizenry of the nation and must pay their fair share. No More Bailouts for Banksters or Wall Street thieves.

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