Gasoline and the price of cracking down on speculators
The unbelievable rise in the cost of gasoline has increased the cost of everything that requires transportation from the sources to the markets. This cost has harmed everyone in the lower 90 percent of the American work force and has diminished the ability of retired people to maintain their living condition. It has also weakened the dollar to a point that some countries may demand payment of their holdings.
Around the first of July, four very intelligent financial managers, among them Mr. Michael Masters, were seen on CNN as they testified before a select panel from the House of Representatives. The subject was gasoline prices and how to lower them.
It would not be necessary to pass new laws in Congress – the industry has too much power to allow that to happen – but could be done by regulations. All four men agreed that the cost of gasoline could be cut in half within 30 days if speculation on the price of gas in the financial markets was reduced.
Their recommendation was to raise the margin level from the present 5 percent level to 50 percent, the same as the other commodities. There would be an immediate effect on the price of gasoline.
If this proved to be a detriment to trust funds and retirement funds, it could be done in steps over monthly increments. If it causes a problem for the speculators, tough! They have been making huge profits and they can stand a little comeuppance.
The Senate has been arguing to pass a law that is supposed to address this issue, but one party has vowed to either keep it from passing or to make so many amendments to it that it would be both too slow and ineffective.
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