High oil prices got you down, think about this....
and then call your Representive and complain!!!
At one time the price of crude oil was fixed, our federal government regulated it and crude was not a commodity. Then sometime in the late 70’s along came OPEC and under president Jimmy Carter the government deregulated crude oil prices, eventually allowing it to become a commodity on the open market.
Once sweet crude oil became a commodity prices per barrel soared, and the reality of that is.
1. Crude oil is critical to the world economy.
2. As oil prices increased business and economies are being suppressed and have declined.
3. Continuing as oil prices soared, costs of materials and transportation increased, many business were no longer viable, jobs were lost, unemployment increased. People once able to buy luxury items are now unable to buy these non essential items, causing the further loss and business closings. Resulting in yet more job loss, consequential in fewer taxes paid to all levels of government, further fueling the deposit. This in effect has been one huge snowball rolling on and on out of control.
4. Crude oil prices are driven for the most by rumors and fear mongering that the commodity brokers and commodity buyers easily subsume to.
5. Oil commodities brokers and investors serve no realistic function; they are nothing more than an over paid middle man, never handling, transporting, or refining, but always driving essential raw materials costs ever higher.
6. In short Oil commodities brokers and buyer have been nothing more than the proverbial leach on the backside of societies worldwide. Forever taking, never giving, and serving absolutely no realistic purpose, other than to take and make a profit at the expense of the world and its many varied economies.
One possible analogy; You are the owner of a new car dealership, needing new inventory to sell at the lowest possible price in order to remain in business by being completive, would you…
a. Contact the factory directly and place your order.
b. Have multiple party’s contact the factory placing bids on the order, to sell it to third party, who in turn bids holds onto, and then places it for sale to you the dealership, who in turn must pay their inflated asking price.
Having too many hands in the supply chain is and always been a real bad idea. Doing so only serves to raise the bottom line for the consumer. Query how bad do you think it could/would get were the farmers, milk producers, grocery stores, lumber companies for example, were to start doing business through resale of goods as commodities prior to reaching the store shelf?
What if the oil commodities brokers were to be removed from the supply chain? Here are a few possible scenarios…
1 The completive auction house bidding would cease, and the price of crude oil would be cut by over half.
2 Cost of product at the pump as well as all oil related products would be cut by over half
3 This in turn would free up cash for citizens and business to make improvements, purchase the non essential items, add inventory, lower costs. Resulting in increased sales, which in turn could fuel more business and start up’s. Business would be able to function with higher profit margins, hence being able to expand adding jobs. Further resulting in the lowering the unemployment rates, and increasing the national wealth through increased productivity. More taxpayers = a lowered national deposit, and fewer on the welfare rolls.
4 Refineries would be able to contact and buy directly from the suppliers.
5 Supply chains would simplify and availability should be virtually unaffected,
6 Synopsis; OPEC would be upset, world prosperity would increase, oil refiners would buy their raw materials directly from the supplier and not from a second, third or even a fourth party. Cutting the middle man and his profit simply makes sense.
Who really wants oil as a commodity? Only two groups come to mind and both are self serving, OPEC as it radically increases the sale price, and Oil Commodity brokers / buyers, driving the price ever higher for profit.
What about the oil commodity brokers? What if the world got wise to this scam and pulled to a halt?
1. They would have to look into investing elsewhere.
2. They would whine like a 3 year old wanting their toy back.
3. Would this hurt anyone other than the oil futures brokers; nope not very likely.
4. Would this help the entire world to grow and prosper; without a doubt YES
5. Is putting something a critical as crude out to be mauled by second and third parties a real bad idea; definitely YES.
6. Should Oil be removed from the commodities market; undoubtedly YES!
7. Will this solve all the ills of the world; NO but it is a start, when they tore down the Berlin wall, first someone had to hit it with a sledge hammer to weaken it first, and this could just be that hammer!
While free enterprise should be, must be encouraged and is paramount in every free society, that gouging, piracy, hijacking, AKA profiteering at the expense of so many others is flat out criminal and must not be allowed to continue! If ours or any society is to continue into the future, then this atrocity against all of mankind must be stopped through any legal means possible ASAP!
"The sword dose not cause the murder, and the maker of the sword dose not bear sin" Rabbi Solomon ben Isaac 11th century
"Don't be so open minded that your brains fall out!" Father John Corapi.