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I have the most brilliant idea to lower oil prices

JS80

Lifer
Oct 24, 2005
26,260
4
81
Considering 1) demand for oil has relatively stayed stable and 2) oil supplies are at all time highs, and oil futures price just keeps going up, it's obvious that it's the futures traders that are causing all this pain and suffering on the common man.

I say we impose a 95% tax on profits made by oil futures traders, and tell them it will start X months from now. This will cause all the fvcking hedge funds to close their positions (sell) and lower futures prices. This would be exempt to entities that actually have legitimate hedging needs through futures market (i.e. airliners, oil companies). This would stop the flow of the billions of dollars into hedge funds who, like a ponzi scheme, prop up oil prices.

The days of oil prices spiking because some oil field in Nigeria got attacked would be over.
 

Amplifier

Banned
Dec 25, 2004
3,143
0
0
Originally posted by: JS80
Considering 1) demand for oil has relatively stayed stable and 2) oil supplies are at all time highs, and oil futures price just keeps going up, it's obvious that it's the futures traders that are causing all this pain and suffering on the common man.

I say we impose a 95% tax on profits made by oil futures traders, and tell them it will start X months from now. This will cause all the fvcking hedge funds to close their positions (sell) and lower futures prices. This would be exempt to entities that actually have legitimate hedging needs through futures market (i.e. airliners, oil companies). This would stop the flow of the billions of dollars into hedge funds who, like a ponzi scheme, prop up oil prices.

The days of oil prices spiking because some oil field in Nigeria got attacked would be over.
rofl
 

cKGunslinger

Lifer
Nov 29, 1999
16,372
41
91
I know nothing of the stock market, but it sounds un-American, anti-Capitalism, and more that a little bit short-sighted.
 

xanis

Lifer
Sep 11, 2005
17,571
7
0
Sorry, but I don't think this would fly. First off, your claim that oil supplies are currenty high is accurate, but there is a little thing called "peak oil". So even if the supplies are currently high, oil companies can get away with charging absurd prices because they can just fall back on the claim that oil is running out. This is true, but we probably won't run out of a oil for a while, I predict a decade or more.

Your idea is good in principle, but it just won't happen. Oil companies are way too powerful, they make way too much money, and they also have total dominance over the oil market. You can't just decide to boycott oil, can you? Even if consumers complain, the oil companies don't have to do sh!t. As long as the government gets their oil for their purposes, I'm guessing they could care less about what happens to consumers.
 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Why stop there, let's do it to all commodities. Hell, I shouldn't have to pay $5.00 for a 16oz package of bacon.

:roll:
 

JS80

Lifer
Oct 24, 2005
26,260
4
81
Originally posted by: logic1485
Not another oil price thread.

didn't you make the last one as well, JS?
Yea but my idea of taxing gas 100% wouldn't be practical. Also I don't think it would lower demand much

Originally posted by: CPA
Why stop there, let's do it to all commodities. Hell, I shouldn't have to pay $5.00 for a 16oz package of bacon.

:roll:
pork belly futures do not affect individuals. I mean does it make sense that the dollar value of outstanding oil futures contracts is MORE than the physical amount of oil out there?

Originally posted by: cKGunslinger
I know nothing of the stock market, but it sounds un-American, anti-Capitalism, and more that a little bit short-sighted.
It's not the stock market. The stock market is not zero sum; wealth is created. The futures market IS zero sum, and it's nothing but a ponzi scheme. Yes it creates value through adding liquidity to the markets, but oil futures have moved beyond its practicality because of all the money that's poured into it. Oil would still be traded, but only by those who have the ability to physically take delivery of barrels of oil and who are able to supply it.
 

Falloutboy

Diamond Member
Jan 2, 2003
5,916
0
71
on one hand I hate the high oil prices on the other I think this is good for us and will force us to find other energy sources.

I just wish we would put real research money into fusion since that is the only viable long term alternative that I can see
 

JS80

Lifer
Oct 24, 2005
26,260
4
81
Originally posted by: Falloutboy
on one hand I hate the high oil prices on the other I think this is good for us and will force us to find other energy sources.

I just wish we would put real research money into fusion since that is the only viable long term alternative that I can see
If my plan works, and let's say gas prices fall by $1, then the gov't can put a "special" $1 tax to replace it and that money would HAVE to be for alternative fuel research.

I think we should all write to our senators.
 

Falloutboy

Diamond Member
Jan 2, 2003
5,916
0
71
Originally posted by: JS80
Originally posted by: Falloutboy
on one hand I hate the high oil prices on the other I think this is good for us and will force us to find other energy sources.

I just wish we would put real research money into fusion since that is the only viable long term alternative that I can see
If my plan works, and let's say gas prices fall by $1, then the gov't can put a "special" $1 tax to replace it and that money would HAVE to be for alternative fuel research.

I think we should all write to our senators.
lmao that would be real popular, no politician in there right mind would even think of such an idea if he wants to stay in office

 

nakedfrog

No Lifer
Apr 3, 2001
51,902
4,379
126
Originally posted by: Falloutboy
on one hand I hate the high oil prices on the other I think this is good for us and will force us to find other energy sources.

I just wish we would put real research money into fusion since that is the only viable long term alternative that I can see
It's sure good for the people making money on it. I don't see it really driving the alternative energy source market, because that was already underway.
 

DaiShan

Diamond Member
Jul 5, 2001
9,617
1
0
OK, first of all the US government can only tax US citizens, so what you would have happen is all of the speculation would be done by non-us citizens the price would not go down, and US businesses would be hurt. So please explain to me how your plan helps America.
 

JS80

Lifer
Oct 24, 2005
26,260
4
81
Originally posted by: DaiShan
OK, first of all the US government can only tax US citizens, so what you would have happen is all of the speculation would be done by non-us citizens the price would not go down, and US businesses would be hurt. So please explain to me how your plan helps America.
I'm sure practically banning futures trading of Oil in the US would rock the global futures market. Bulk of the trading is done by billion dollar hedge funds in the US. What good is profits earned in overseas (by GS, MER, LEH, etc) accounts if you can't repatriate it to the US?

How would US businesses be hurt by banning of speculative futures trading of Oil?
 

gotsmack

Diamond Member
Mar 4, 2001
5,768
0
71
Originally posted by: JS80
Originally posted by: DaiShan
OK, first of all the US government can only tax US citizens, so what you would have happen is all of the speculation would be done by non-us citizens the price would not go down, and US businesses would be hurt. So please explain to me how your plan helps America.
I'm sure practically banning futures trading of Oil in the US would rock the global futures market. Bulk of the trading is done by billion dollar hedge funds in the US. What good is profits earned in overseas (by GS, MER, LEH, etc) accounts if you can't repatriate it to the US?

How would US businesses be hurt by banning of speculative futures trading of Oil?
no, oil futures trading would just move overseas and profits would be laundered through other ventures or those monies would be used for overhead.
 

z42

Senior member
Apr 22, 2006
465
0
0
Originally posted by: JS80
Considering 1) demand for oil has relatively stayed stable and 2) oil supplies are at all time highs, and oil futures price just keeps going up, it's obvious that it's the futures traders that are causing all this pain and suffering on the common man.

I say we impose a 95% tax on profits made by oil futures traders, and tell them it will start X months from now. This will cause all the fvcking hedge funds to close their positions (sell) and lower futures prices. This would be exempt to entities that actually have legitimate hedging needs through futures market (i.e. airliners, oil companies). This would stop the flow of the billions of dollars into hedge funds who, like a ponzi scheme, prop up oil prices.

The days of oil prices spiking because some oil field in Nigeria got attacked would be over.

Your assumption is wrong. Demand for oil is skyrocketing. That is causing prices to increase more than any economic speculation. You also have to consider how gov't policies have discouraged the upkeep/building of refineries and how big oil spends freakish amounts of money to discourage the use of alternative energy sources.
 

0roo0roo

No Lifer
Sep 21, 2002
64,862
83
91
hm, reason magazine has a thing on peak oil this month. we haven't reached it yet it seems though
 

JS80

Lifer
Oct 24, 2005
26,260
4
81
Originally posted by: Taggart
you can't control capital markets like that
you mean like how insider trading is illegal and SEC has a bazillion rules and regs?
 

Tom

Lifer
Oct 9, 1999
13,293
1
76
Originally posted by: CPA
Why stop there, let's do it to all commodities. Hell, I shouldn't have to pay $5.00 for a 16oz package of bacon.

:roll:

I get my bacon from the Amish for $2.50 a pound. Bypassing the commodities sharks.


 

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