[renterclint]

underdose,

That is a good point about the inflation factor. It sounds like oil typically runs adversely to the dollar & other commodities for many reasons.

The Fed has their hands full with trying to prop up our troubled credit system, so I think they do not dare raise interest rates any time soon. Inflation seems like the furthest issue from their minds.

As for government spending… it really doesn’t matter whether we’re dumping $$ in military actions, into saving Medicare & Social Security, into stimulus checks, or whatever… we need to wake up & start demanding our leaders push for fiscal responsibility. Currently, it seems like none of us consituents are willing to give anything up. Some have suggested that increased oil prices is good in that it forces us to stop using so much & seek alternatives. So maybe we will eventually stop defacing our currency via increased national debt when our foreign investors finally start demanding a higher return on our government securities. Although I suppose they already are demanding higher returns which is why our dollar is sucking sand.

[renterclint]

Okay-

Apparently this issue is much more complex than I originally gave it credit. Thanks to everyone who responded!

As I began to research the subject a little more, I discovered a couple web/newspaper sources claiming that the so-called “Enron Loophole” was effectively closed late in 2007.

What got me really thinking about the issue were several recent televised stories on oil speculation. The last of these recent segments layed out an elaborate time-line of how a certain Texas senator & a member of the CFTC conspired w/ Enron executives to create this loophole. I do not recall any of these stories explaining that the Enron Loophole had been closed. Funny…

[renterclint]

Okay-

Apparently this issue is much more complex than I originally gave it credit. Thanks to everyone who responded!

As I began to research the subject a little more, I discovered a couple web/newspaper sources claiming that the so-called “Enron Loophole” was effectively closed late in 2007.

What got me really thinking about the issue were several recent televised stories on oil speculation. The last of these recent segments layed out an elaborate time-line of how a certain Texas senator & a member of the CFTC conspired w/ Enron executives to create this loophole. I do not recall any of these stories explaining that the Enron Loophole had been closed. Funny…

[renterclint]

Okay-

Apparently this issue is much more complex than I originally gave it credit. Thanks to everyone who responded!

As I began to research the subject a little more, I discovered a couple web/newspaper sources claiming that the so-called “Enron Loophole” was effectively closed late in 2007.

What got me really thinking about the issue were several recent televised stories on oil speculation. The last of these recent segments layed out an elaborate time-line of how a certain Texas senator & a member of the CFTC conspired w/ Enron executives to create this loophole. I do not recall any of these stories explaining that the Enron Loophole had been closed. Funny…

[renterclint]

Okay-

Apparently this issue is much more complex than I originally gave it credit. Thanks to everyone who responded!

As I began to research the subject a little more, I discovered a couple web/newspaper sources claiming that the so-called “Enron Loophole” was effectively closed late in 2007.

What got me really thinking about the issue were several recent televised stories on oil speculation. The last of these recent segments layed out an elaborate time-line of how a certain Texas senator & a member of the CFTC conspired w/ Enron executives to create this loophole. I do not recall any of these stories explaining that the Enron Loophole had been closed. Funny…

[renterclint]

Okay-

Apparently this issue is much more complex than I originally gave it credit. Thanks to everyone who responded!

As I began to research the subject a little more, I discovered a couple web/newspaper sources claiming that the so-called “Enron Loophole” was effectively closed late in 2007.

What got me really thinking about the issue were several recent televised stories on oil speculation. The last of these recent segments layed out an elaborate time-line of how a certain Texas senator & a member of the CFTC conspired w/ Enron executives to create this loophole. I do not recall any of these stories explaining that the Enron Loophole had been closed. Funny…

[renterclint]

We’re in so deep, I don’t think our grandkids will get the bill… But props to China for financing the deficit spending.

[renterclint]

We’re in so deep, I don’t think our grandkids will get the bill… But props to China for financing the deficit spending.

[renterclint]

We’re in so deep, I don’t think our grandkids will get the bill… But props to China for financing the deficit spending.

[renterclint]

We’re in so deep, I don’t think our grandkids will get the bill… But props to China for financing the deficit spending.

[renterclint]

We’re in so deep, I don’t think our grandkids will get the bill… But props to China for financing the deficit spending.

[renterclint]

“The oil price can be thought of as a composite signal, resulting from a speculative signal superimposed over a fundamental signal. If we can determine the magnitude and sign of the speculative signal at each time, we can ascertain whether speculation was the main driver of the latest price rise or not.”

arraya, I have never claimed to be a mental giant, but this passage you just posted makes my head hurt! I think I got my signals transposed rather than superimposed…

Does the COT address the swaps & other derivatives that are directly related to the commodities futures? It sounds like there is a lot of activity going on with virtually no oversight.

And btw, I think you are right on the $$ about demand forever outstripping supply. As China, India, & other companies continue to develop & the foreign middle-class grows, demand will be out of control. Oil reserves are finite. It is definitely time to plan for our long-term energy future.

But I disagree that the current state of commodity speculation is irrelevant minutia. It is a current problem that if addressed directly could provide economic relief regarding energy prices & likely food prices as well.

[renterclint]

“The oil price can be thought of as a composite signal, resulting from a speculative signal superimposed over a fundamental signal. If we can determine the magnitude and sign of the speculative signal at each time, we can ascertain whether speculation was the main driver of the latest price rise or not.”

arraya, I have never claimed to be a mental giant, but this passage you just posted makes my head hurt! I think I got my signals transposed rather than superimposed…

Does the COT address the swaps & other derivatives that are directly related to the commodities futures? It sounds like there is a lot of activity going on with virtually no oversight.

And btw, I think you are right on the $$ about demand forever outstripping supply. As China, India, & other companies continue to develop & the foreign middle-class grows, demand will be out of control. Oil reserves are finite. It is definitely time to plan for our long-term energy future.

But I disagree that the current state of commodity speculation is irrelevant minutia. It is a current problem that if addressed directly could provide economic relief regarding energy prices & likely food prices as well.

[renterclint]

“The oil price can be thought of as a composite signal, resulting from a speculative signal superimposed over a fundamental signal. If we can determine the magnitude and sign of the speculative signal at each time, we can ascertain whether speculation was the main driver of the latest price rise or not.”

arraya, I have never claimed to be a mental giant, but this passage you just posted makes my head hurt! I think I got my signals transposed rather than superimposed…

Does the COT address the swaps & other derivatives that are directly related to the commodities futures? It sounds like there is a lot of activity going on with virtually no oversight.

And btw, I think you are right on the $$ about demand forever outstripping supply. As China, India, & other companies continue to develop & the foreign middle-class grows, demand will be out of control. Oil reserves are finite. It is definitely time to plan for our long-term energy future.

But I disagree that the current state of commodity speculation is irrelevant minutia. It is a current problem that if addressed directly could provide economic relief regarding energy prices & likely food prices as well.

[renterclint]

“The oil price can be thought of as a composite signal, resulting from a speculative signal superimposed over a fundamental signal. If we can determine the magnitude and sign of the speculative signal at each time, we can ascertain whether speculation was the main driver of the latest price rise or not.”

arraya, I have never claimed to be a mental giant, but this passage you just posted makes my head hurt! I think I got my signals transposed rather than superimposed…

Does the COT address the swaps & other derivatives that are directly related to the commodities futures? It sounds like there is a lot of activity going on with virtually no oversight.

And btw, I think you are right on the $$ about demand forever outstripping supply. As China, India, & other companies continue to develop & the foreign middle-class grows, demand will be out of control. Oil reserves are finite. It is definitely time to plan for our long-term energy future.

But I disagree that the current state of commodity speculation is irrelevant minutia. It is a current problem that if addressed directly could provide economic relief regarding energy prices & likely food prices as well.

[Author]

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