Require a Licensing requirement for Traders on the Various Commodity Markets!

[trthnd4jstc]

Hello Friends, Democrats, and Others,

I thought about how the Chicago Mercantile Exchange, the place where they do the trading on Grain Commodities, in the US, and I thought, we got defends in the market, sovereign funds, and other speculators, and day-traders, and these people are the ones who are causing the Commodities market to be experiencing the inflation that we are seeing. Let us require the licensing, through legislation, of the Traders on the Floor, and on-line to have to be actual purchasers, bankers, owners of Grain Silo's, business's that transport Grain, Food Processors, and Ethanol Processors be the ones licensed to purchase Grain on the Commodities Market. My idea simply is to require the buyers of commodity futures to be involved in the food industry, one way or another, leaving the damn selfish, greedy, heartless day-traders, and speculators out in the cold. If one was to analyze some of these people, which I personally have acquainted with 2, which does not make me an expert, in any way, shape or form, I would wonder if they were primarily evil human beings, who knows?

Further, how about an International Treaty to require Commodity Traders, for all of the Resources of Our Earth, to be Licensed, and part of that licensing, was that you had to be involved in those commodities, either in finance, processing, storage, transportation, whatever.

What is happening in the Grain Market in terms of inflation is real, and scary. Millions of People in our Nation, and Worldwide are suffering because of Inflation in the Grain Markets. Something should, and can be done about this.

US seeing worst Food Inflation in 17 Years:
http://www.msnbc.msn.com/id/24127314/

" U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Higher prices for food and energy are again expected to play a leading role in pushing the government’s consumer price index higher for March.

Analysts are forecasting that Wednesday’s Department of Labor report will show the Consumer Price Index rose at a 4 percent annual rate in the first three months of the year, up from last year’s overall rise of 2.8 percent.

For the U.S. poor, any increase in food costs sets up an either-or equation: Give something up to pay for food.

“I was talking to people who make $9 an hour, talking about how they might save $5 a week,” said Kathleen DiChiara, president and CEO of the Community Food Bank of New Jersey. “They really felt they couldn’t. That was before. Now, they have to.” "

Surging Prices on Groceries:
http://www.boston.com/business/personalfinance/articles/2008/03/09/surging_costs_of_groceries_hit_home/

" "After nearly two decades of low food inflation, prices for staples such as bread, milk, eggs, and flour are rising sharply, surging in the past year at double-digit rates, according to the Labor Department. Milk prices, for example, increased 26 percent over the year. Egg prices jumped 40 percent.

Escalating food costs could present a greater problem than soaring oil prices for the national economy because the average household spends three times as much for food as for gasoline. Food accounts for about 13 percent of household spending compared with about 4 percent for gas.

Rising food prices can be particularly corrosive to consumer confidence because people are so frequently exposed to the cost increases. "It's the biggest risk we face economically, and it might be the thing that does us in," said Rich Yamarone, director of economic research at Argus Research Corp. in New York. "There's nothing really worse than having a job, making money, and forking most of it over just so you can have the same amount of food. You're running in place, and it really weighs on you."

As with energy, higher food costs cut into discretionary income that buys everything from cars to computers to movie tickets and drives the consumer-based US economy. Falling home values and a faltering stock market have battered consumer confidence, spurring a retrenchment in spending that is contributing to recent job losses and pulling the economy toward recession." "

The Oil Drum (website name), Discussions about Energy and Our Future:
http://www.theoildrum.com/node/3387

" The Archdruid had a piece last week about the likely future of agriculture in a world with less fossil fuel. In that piece, he had an unsourced statistic stating that US food inflation was currently 20%. That sounded high to me. A quick check at the Bureau of Labor Statistics confirmed that current food inflation for US consumers is just a little north of 4%. In email with the Archdruid, he came up with more statistics. The FAO's global food price index, which summarizes agricultural commodity prices, rose 37% year on year to September 2007. This piqued my interest to explore the issue a little further, and here is a quick tour of what I found. "

There are some grafts on the Oil Drum Website.

Does Anyone think that the There are inadequate fiqures given by the Mainstream Media? Like how low the first article I reference listed Food Inflation, and yet the Oil Drum lists food inflation near 20%. It seems to me and an associate that food has gone up about 17% in the last 6 Months. Could it be that People are lieing to Us?

Secretary of Commerce Paulson said that for the Petroleum Market we are only seeing the effects of supply and demand. Maybe, if one ignores the inflationary effects that Speculators, and Day-traders are having in the Petroleum Market. Last year, when I was doing some work for an executive of the oil industry, I struck up a conversation.

I asked, "I heard that it only cost $26.00 to $36.00 a Barrel of Oil to remove it from the Earth?"

He said, "In the states it usually cost around $28.50 a Barrel."

I said, "Wow, and it might go up to $100.00 by the end of this year?"

He said, "Certainly."

"Is this a result of speculators, and hedge funds?"

"Most Certainly."

I am not a Genius. I am certain that I could have made a grammatical error or two, or could have explained things more effectively. Please forgive any inadequacies? But, has not the time come that Speculators, and Day-traders need to be removed from the Market?

[LiberalArkie]

1. But, But you forget this is a capitialist society. Capitialism is about making money.

[trthnd4jstc]

3. Actually Congress has the means of Controlling Interstate Commerce.

Not all of this Society is Capitalist. Further, One must be licensed to perform many things in this country, I possess 5 licenses right now. Yes it is a Capitalist Society, but the Government has a right and a duty to provide good, and fair regulation over Commerce.

[hisownpetard]

2. As for me, I'm all for requiring some requirements!

:hi:

[trthnd4jstc]

5. I believe in Fair Trade. I do not believe in Absolutely Free Markets.

I wish I was a Genius, I would write up a series of Criticisms about Free Markets. Well, I am a Sub-Genius, and here is a partial list of problems with Free Markets, Free Market Capitalism, and De-Regulation:

1. Free Markets tend towards either Oligopoly, or Monopoly.
2. Free Markets can be Manipulated by rumors of scarcity, or rumors of breakdowns in shipping, all of these which will cause an inflationary spike.
3. After multiple Inflationary Spikes, life grows desparate, and serious for the Majority.
4. People increase in Thieving, the increase in Thieving, will further deteriorate society.
5. Free Market mentality helps to reinforce the Hateful Philosophy of Social Darwinism(Because I am Rich, I am Special, More Special than the Poor.)
6. Free Markets are never Free, even if completely De-Regulated (No Government Involvement). Old Guy, and Old Girl networks abound. Generally, people
get work done by people that they know. Think Halliburton, where was Free Market Capitalism There?
7. Free Markets devalue Human Relationships. Many Communities have been damaged by the Wal-martification of Business. Business is not always better
when it is bigger, in fact less Research and Development, and less concern for Consumer Satisfaction, look at Charter, or ATT. Big Business often
becomes worse when it is bigger. Trade should be about an exchange of resources and not the exploitation of others.

Frankly, Capitalism sucks. Free Trade needs to be regulated. We have not found the right mix of Government involvement and Free Trade. I would be willing to stay in the debate, for the rest of my G-d given life.

[Captain Angry]

4. A few things.

1: Licensing is required. It's not hard to get.

2: This is happening globally, not just here in the States, so how do you remove speculators and day traders from the markets in Europe and Southeast Asia?

3: As long as somebody has the money and is willing to pay more than the underlying value, the seller will take that payment.


Bottom Line: Until big money sees a safer, more profitably home, it's staying put. As soon as a better investment comes along, commodity prices will drop like a rock as the funds shift their holdings. There are fundamentals at work that require a higher price than 8 years ago, but certainly not double.

[trthnd4jstc]

6. Thanks for your Response, I got questions....

1: Licensing is required. It's not hard to get.

Sure, licensing is required, I believe that allowing the Day Traders, and Speculators to play in these markets is the major cause of this Inflation. If the trades were amongst mainly players in these markets, like it was about a year ago, we would not have this inflation. What is your thought about how to control this rate of Inflation?

2: This is happening globally, not just here in the States, so how do you remove speculators and day traders from the markets in Europe and Southeast Asia?

We need an International Treaty. We need people who care, with Money, and access to Economists to write the bulk of this stuff up. I bet the EU would back this idea.

3: As long as somebody has the money and is willing to pay more than the underlying value, the seller will take that payment.

I do see that this is a Supply and Demand Question. Personally, I do not worship Supply and Demand, nor the Concept of absolutely Free Markets. I worship Fair Trade. I like dealing with my Clients fairly, I never lie to them, and I take care of there needs. Obviously, I believe in Free Trade also. I think that the Economy is more important than any One Trader, or any One Country. We need to work towards a new Business Ethic. I believe Fair Trade is that Ethic.