Thứ Năm, 21 tháng 4, 2011

Scapegoating 101: Obama Rips 'Speculators' and Greedy Capitalists for the High Oil Prices That He Intentionally Created

As the full impact of his massive budget deficits and senseless drilling bans are felt, President Obama has attempted a classic maneuver: deflection.

Instead of investigating fraud and corruption at banks, and instead of questioning the Fed's policy of US dollar debasement, and instead of pondering the role his administration's budget deficits have on the price of commodities, Team Obama Targets Oil Traders and Speculators...

...The first rule in scapegoating, of which president Obama is a renown grand-master, is to quickly point the finger at someone else before everyone figures out where the finger should be pointed.

Bear in mind that traders and speculators probably are pushing the price of oil higher. I cannot quantify "how much" but open interest in commodity futures by speculators is at or near peak levels. Moreover, hedge funds and pension plans have plowed into commodity ETFs. These actions have an upward, yet unquantifiable effect on price.

The root cause of this mess however, is massive, perpetual, and ever-increasing budget deficits in conjunction with the Fed's explicit policy of US dollar debasement.

As a result of those forces, it is perfectly natural for traders and speculators to bet against the dollar and on hard assets like gold, silver, and oil, even though the trade may become overly one-sided, as it is right now.

Thus if Obama wants to point a finger, he should point a finger at himself, at Congress, and at the Fed, not at traders and speculators.

But he won't.

Barack Obama wants higher energy prices. I mean, this is the same man who said that the cost of energy would "necessarily skyrocket" under his 'cap-and-trade' policies.

He predicted it. He wanted it. He's got it.

He is to blame. Not "speculators". Not capitalism. Him. Obama.


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