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.