This morning, colleagues of mine and I - and maybe you, too - received an e-mail from 12 Angry Men. Most of us just juiced it without reading it.
Now let me say before I go on that I am not a big fan of the airlines, and that Delta really roasts my onions. I'm just not too fond of big, stagnant companies that can't carve a profit while killing competition at hubs, pulling the rug out from under investors, and further dehumanizing and already dehumanizing experience.
So imagine my genuine surprise when a friend forwarded this message, signed by 12 CEOs and presidents of the largest U.S.-based airlines, calling BS on what's generally being reported as the causes of astronomic fuel prices.
We've heard 'em, haven't we? Worldwide consumption is up. Emerging cultures like China are increasing demand. And we've all seen the e-mails that want us to fight the power by which gas stations we choose to buy our gas.
But the directness of the e-mail - especially considering who it's from - just bowled me over. And its message is dead-nuts on:
Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.
Whoa. Preach it, my brothers (sorry, there are no women among the 12).
This is EXACTLY the problem that the mainstream media don't comment on, because the boogey man is us. Not the Saudis, not the Axis of Evil - it's our government, asleep at the wheel again.
Or is it something worse?
Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.
Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.
So, the actionable item of the e-mail is a link to a Web site: Stop Oil Speculation Now. Once there, you can enter your Zip Code and send a message to your members of the House and Senate, telling them to get control of this system that's clearly a mess and just as clearly their fault.
Sure, there are plenty of factors that contribute to high fuel and energy prices. And the invisible hand is surely one of them.
But this is at the heart of the matter, and is exactly the action we need to right this ship now. Not only buying gas at the neighborhood station or trading in the SUV.
These 12 men are standing up and saying what needs to be said. Greed, once again, is dragging us all down and making a very few very, very wealthy.
It’s almost enough to make me like these guys again.
My wife and I have cut our gasoline consumption from over $100.00 per week a year ago to less than $30.00 now. were going to make some changes here at the shop also to knock down our propane usage by custom building a hybyrid electric/hydrogen furnace. Cost to heat shop for last winter was over $8,000.00 of propane so I have alot of cash I can spend on building the hybrid furnace.
Now I know not everyone is capable of bringing down their costs as effectively as I have.
I recognize the argument about the speculators but if more people would just try and make conscience efforts to use less, The oil speculators would get hurt where it counts. in their wallet.
And then the table would be turned as the speculators would lose cash in a big way...
I strongly believe all issues are self correcting in a democracy. and as far as this problem?
give it time the pendulum will swing the other way. It just stings real bad when you ignore a problem and make no mistake the American people have been ignoring this one for way too long.