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This was originally written in October 2007 when gas was $2.75 a gallon.

It has been decried long before the first Earth Day in the seventies and over thirty years later, we still allow our politicians, oil conglomerates, and irrational perspectives to rule our absurd interconnected world. As the price per barrel rises, we “barrel” into what could be the worst economic recession the world has seen while allowing our dollar to sink to the lowest price relative to other currencies in our history. There are many reasons for slower growth but none so permeating as oil. We feed terrorist countries with huge amounts of cash that they use to purchase weapons from our “allies” to use against us. We allow our economy to be tied to the purchase of that oil and therefore like a heroin addict we can’t break away from the injection.

We use more energy per person than any other country on the planet. Don’t you think it is time for a national coherent plan of action to stop this madness? We need an equivalent of a “moon landing” program, or a war bond campaign of conservation, while the private sector such nuclear (we pay for all waste and cleanup and limit damages in an accident), oil (drilling and lease subsidies, tax breaks),  is given subsidies that have been taken away for alternatives such as solar, wind, and geothermal power to start and then get our automobiles off the track of using gasoline to new technologies of hydrogen, hybrid, natural gas alternatives.

This is your country, you need to become active and demand our government stop this addictive behavior to allow large corporate entities to rule this land by political special interests. This should be an political election platform for our potential leaders, because as I look at the past we are still sitting on our collective butts and wait for government and oil companies to come forth with an answer that is not in their best interest to solve in any form. Now is the time to demand action, or we may be paying in many more ways than at the pump my fellow citizens. You don’t want the extreme ramifications of supply and demand of this “world economy” to destroy what we have built.

We need an Energy Independence Declaration to begin the work to give the private sector the tax breaks they need to innovate and come up with viable alternatives so we can breathe clean air, keep our economy humming, and keep the dollars out of the hands of those who would use them against us given the chance. Your children’s children need a fair shot at a good life.

Few people understand futures and options contracts on the open market, if one could call it that.  Essentially, what we humans do is write on a piece of paper a price and a date for commodities such as oranges (Think Eddie Murphy in Trading Places), coffee, pork bellies, grain, and the most talked about today-oil.  The futures pit used to be a place to hedge bets against a bad crop or to ensure future supplies at a pre-negotiated price.  In this era, less than 1% of all futures contracts written will ever see the light of day in delivery of those items.  It is all about shuffling the paper to stick the other guy with the speculative prices that a few million dollars has jacked-up.  It isn’t like the stock market where millions of shares worth hundreds of billions can be manipulated and are….but not as easily.  Leverage my friends is the “Power of the Schwartz” that allow few to make millions and now as the opportunists see the advantage of that leveraging, they are throwing their fund’s dollars at the commodities in anticipation of the same stupid hopes that the housing market counted on-that nothing ever goes down.

Now pretty brunettes can espouse all they want on CNBC about how the “free market” sets these prices and to dare to tamper with this “free enterprise” would be akin to sacrilege and completely throw our capitalist standards to the wind- forever shall we be damaged.  Never mind we’ve been adjusting the rules of the “free market” ever since there was a free market.  Derivatives did their damage in the nineties and those same geniuses brought us the CDO’s and other money-making “instruments” designed to ensure profit and lure in millions of investment dollars to make millions more in speculative endangerment to our species.  What the hell ever happened to investment?  One would buy a stock to invest in the future of a company, not buy a future to hope to put it to someone else on the food chain before time runs out.  These same talking brunettes tell you that it is demand and supply, and to a certain extent it is, however prices for oil have exploded in the face of less demand here and abroad.  How is it that we allow a small group of speculators to set the prices for oil that Exxon executives love to point to when questioned?  Because we are irrational idiots.  These are professional horse traders not oil men, drillers, refiners, wildcatters, and have well-manicured nails with no calluses on their hands.  They are toying with our financial system.

Here’s a possible solution for oil futures:

1.  One can only buy contracts of tanker loads with a minimum 250,000 DWT (Dead Ton Weight)

2. Any new futures contract must be bought at a time period at least 15 days out, not for that day of purchase.  Anyone holding older contracts can sell them but only in the month of expiration.

3. An oil futures contract cannot be traded until that contract month begins.

4.  Any contract that does not trade must take delivery at expiration. (Just have that tanker show up on the East River outside their palatial condo)

5. Apply similar standards to all other futures contracts in varying degrees.

 Now I guarantee you that prices on all commodities will fall to their real level of worth within days and oil will be at $50 a barrel overnight.  Too bad those who make all that money at the expense of our national economy don’t give a damn about their own country as much as they do about making profits at the expense of their country and country-men and women.  If they try to move the exchange to overseas, then we negotiate with that government to put the same rules in place.  It is to their advantage to do so and we give them enough foreign aid to help them keep illegal speculation at bay.  It would be cheaper than finding Bin Laden.

We need to take our futures back, now!


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