Friday, June 27, 2008

Dick Cheney Was Right!

From June 20th:

Today the chair of the House Energy and Commerce subcommittee stated, "speculators now control 71% of oil on the market." He added that "only 29% of traders control the physical oil being traded."

History lesson:

In 2000, 61% of the market trading was for physical oil and only 39% trading in futures. Then, Texas Senator Phil Graham and his wife Wendy helped create several loopholes in the Commodity Futures Modernization Act of 2000 that allowed a high volume of futures trading to go unmonitored. As a result, Wendy Graham was rewarded handsomely with a fat position on the Enron Board. Phil had already gotten his reward by way of copious Enron campaign contributions.

In Spring of 2001, Dick Cheney heralded Enron's business model as "the future of energy."

Now in 2008, Arab oil supplies and world demand only effect 29% of the market price. Dick Cheney and his Energy Task Force speculator buddies control the other 71%.

Dick Cheney sure was right!

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