I happen to agree with you, but you're just making claims such as "it's ridiculous". These are claims like your claims that "they can just print money" and then showing some money supply statistics which have nothing to do with your "new" definition of printing money.Gordo wrote:I saw the 60 minutes piece, I think they did a decent (although incomplete) job as hardly anyone else in the media had been explaining the role of speculation in the commodities bubble and many (like you) were completely ignoring the role of the speculator on prices. No one said speculators were the ONLY cause of the run up in prices, but they certainly stretched things to new extremes.
Its ridiculous that you think 60 to 70% of the contracts on a given commodity can be purchased by speculators without impacting price the price at all.
To make a case, I believe you need to show how the futures and cash oil markets are linked. My opinion, although nobody seems to be able to answer it or even acknowledge it, is that they are not directly linked like some futures and cash markets are, but are indirectly linked through the cost of the carry and for that reason speculators in the futures markets can exert upward pressure on the cash market.
What is your exact reason for making this claim?