Posted by
theguardian777 on Monday, March 31, 2008 2:48:09 PM
The recent flight of speculators, with their massive capital funds, to and from the commodities markets has driven the price of nearly every commodity from soybeans to a barrel of crude oil up to new record highs, and then down the limit several days in a row.
Most of these speculators are just common people, or their mutual funds, like lemmings following the pack to their own doom, having far more money than brains, and even less scruples, some have even borrowed against their own homes to reinvest in speculation; this is exactly what happened to bring us the Great Depression in 1929!
The rest of these parasites are the big fat rats that lead the pack in every direction, arriving first, leaving first, eating the major portion of the cheese, and leaving the little people in the pack to fight and cannibalize each other over the crumbs.
Because the housing bubble already burst, they can no longer support their greedy, lazy and non-productive lifestyles by outbidding poor young families for their very own house to live in. So they have led the pack to greener pastures, where they will ruin the lives, dreams and years of hard work for other good people by outbidding everyone for the food they need to feed themselves and their children, and the fuel they need to get to work.
There is no greater threat to the stability of our economy than this useless, yet self-serving, speculation. Due to far too favorable tax treatment as legitimate capital gains, it has become pervasive, and wrongly legitimized, within the investment portfolios of the common man’s retirement funds, as well as the market mavens of Wall Street.
Speculation serves absolutely no useful purpose in the marketplace; it creates no wealth.
All new wealth entering any earthly economic system in any given period of time is purely the result of sunlight striking the surface of our little biosphere and, through some thermo-chemical or thermodynamic process, being stored as useful energy in some other ethereal or material form. All real capital is just stored sunlight, and we have control of it when we harvest it from the fields, forests, mines, atmosphere and waters of the Earth!
For the lazy parasites of Wall Street to acquire this new wealth without Super-human intervention, it is necessary to devise elaborate schemes by which they steal it from those who legitimately produced it without offering a fair market exchange of equal value.
Speculation in the commodities markets is the ultimate tool in this thievery scheme.
The commodities market speculator never takes possession of their purchase; there is no need, as they never had any intention of using the stored energy to accomplish useful work for society. They never add any value to it by making it more useful to other humans, like grinding grain into flour, or baking it into bread. They never even move it from one place where there is a surplus to another where people need more supply of it.
The only possible, and universal, effect of all speculation is to tend to drive down prices for the producer, and to drive prices up for the consumer. It forces all legitimate bidders (who want to use or improve the commodity) in the marketplace to play the same sick game and widen their profit margins to avoid their own bankruptcy and compensate for this illegitimate extraction of wealth from the production system, without fair exchange.
Only by enacting punitive taxes upon speculative earnings can we ever hope to stabilize our economy, level the playing field for the producers, and assure fair value to end users.
In a world with finite food reserves and over 6 Billion people to feed, nobody has a right to hoard all the food they can afford to buy, leaving millions of other people to starve.
We would not permit such a thing with a gun; neither should we allow it with a market call order. For the human with the empty stomach, the effect feels exactly the same.