Originally posted by: Thump553
I was watching a panel discussion on CSPAN over the weekend and one of the panelists mentioned that oil now chnages hands an average of 22 times between the ground and the pump. He was arguing that this "excess liquidity" (ie, speculation) is much of the cause of of gas, diesel, etc. price increases recently.
Frankly, I like someone to explain to me what harm would be caused by the government tamping down on the oil futures market by raising margin requirements, etc. They did it with silver after the Hunt brothers tried to corner that market, it can be done with oil as well.
Intersting:
The Hunt Brothers and the Silver Bubble
In 1973, the Hunt family of Texas, possibly the richest family in America at the time, decided to buy precious metals as a hedge against inflation.
Gold could not be held by private citizens at that time, so the Hunts began to buy silver in enormous quantity.
In 1979 the sons of patriarch H.L. Hunt, Nelson Bunker and William Herbert, together with some wealthy Arabs, formed a silver pool.
In a short period of time they had amassed more than 200 million ounces of silver, equivalent to half the world's deliverable supply.
When the Hunt's had begun accumulating silver back in 1973 the price was in the $1.95 / ounce range. Early in '79, the price was about $5. Late '79 / early '80 the price was in the $50's, peaking at $54.
Once the silver market was cornered, outsiders joined the chase
but a combination of changed trading rules on the New York Metals Market (COMEX) and the intervention of the Federal Reserve put an end to the game.
The price began to slide, culminating in a 50% one-day decline on March 27, 1980 as the price plummeted from $21.62 to $10.80.
The collapse of the silver market meant countless losses for speculators. The Hunt brothers declared bankruptcy. By 1987 their liabilities had grown to nearly $2.5 billion against assets of $1.5 billion. In August of 1988 the Hunts were convicted of conspiring to manipulate the market.
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This "Oil Surge scam" looks to be Hunt Brothers part II
Notice the players are the same, only instead of silver it is oil.
Still calling them "our friends"?
So what did the Federal Reserve do to "put an end to the game"?
I have been saying all aong that the oil industry folks are criminals.
Looks like they are just as guilty as the silver scam of 1973-1980.
Thanks Thump :thumbsup:
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