For driving up the price of gas.
Okay, okay, I know I said gas was bad and we should find alternative fuels, etc., etc. But let’s be realistic—it ain’t happening anytime soon. So it’s time to dip into the problem… The New York Mercantile Exchange is the world’s largest commodity futures exchange. This is where energy products and other commodities are bought and sold. Oil is among the most heavily traded. Exxon Mobil reported $45.2 billion in profits for 2008. That’s right, $45.2 B-I-L-L-I-O-N in one year. That is $150 for every man, woman, and child in the U.S. How is this possible? I give you the New York Mercantile Exchange to blame. And why? Money, duh!
Maybe I’m missing something here, but it seems to me that the price of gas should be determined by how much it costs to pull the oil from the ground and then refine, transport, and distribute it, plus tax. That should be it, right? Unfortunately, it’s not. Buying and selling oil on speculation at the New York Mercantile Exchange (and London’s ICE Futures) is to blame for the capricious pricing. It has nothing to do with myths of “peak oil” or supply and demand. The process of trading “paper oil” is very opaque. Actually understanding the “who” and “why” is about as transparent as West Texas crude.
We can all agree that gas prices are out of whack and about as stable as Britney’s mental health. The lack of regulation has only enhanced the confusion and greed. The NYME needs a babysitter, that’s all there is to it. We have already learned that we can’t trust greedy businessmen with power. As my high school world history teacher frequently reminded us, “Power corrupts, and absolute power corrupts absolutely.”