‘Perhaps 60% of today’s oil price is pure speculation’
Commentary by Robert R Barney
The article above has some good points about the cost of oil being driven up by speculators. This is true, but because of the far left view of the article, it is a commentary more on the evils of capitalism then it is what forces are really driving up the oil prices. Here is a very brief synopsis:
#1 The oil companies themselves. What is often not reported is that many oil companies own their own wells and do not have to buy much of their oil from the oil cartel. That is often ignored. The higher the "spot" price is for oil, the greater the windfall profits are. It cost an oil company $10-15 a barrel to produce their own crude. They can sell it to themselves now for $125! Remember this point. Capitalism hasn't failed, it does not work with large multi-national companies that conspire together to fix prices. Big business is as evil as big government!
#2 Greed Many apologist for the oil companies (like Rush Limbaugh) think that greed is good. Greed to them equals capitalism. It does not. Greed is a sin against God. Reward for investment is capitlism, greed destroys the society and ultimately the will fail and cause economic chaos.
#3 Government: Big governments can't do anything right. Ronald Reagan was correct when he said the scarriest words in the English language is that "I'm from the government and I'm here to help." Government price controls will lead to $10.00 a gallon gas and shortages. The government must get out of the way except for this; Break up big oil!
