Commodity plunge not a cause of natural cycle but by the loud cry for investigations


It never ceases to amaze me how quickly people forget the path that they have just traveled.  Maybe its just for convenience or maybe it’s something else, but what ever it is, we need to change this habit because no problem is ever solved if those trying to fix it will not first acknowledge that it exist

Case in point is the article by Jonathan Fahey and Chris Kahn of the Associated Press titled Gas price to drop as oil joins commodities plunge.  These highly educated and skilled professional wrote that “investors finally hit the brakes on oil, gold, silver and food prices. Analysts say investors got nervous that oil, metals and grains had risen over the past few months to unrealistic heights. The most common reason given by analysts for the sell-off was the strengthening U.S. dollar.  Other factors such as concern about Middle East oil supplies and China's demand for raw materials contributed to the momentum. Analysts warned it was overdone.”  While I am in no position to question the expertise used to compose neither this article nor the extensive knowledge of the writers, I am in a position to ask if this is truthful reporting or just spin.

None of the mentioned speculators ever cared about the damage it was and has been doing to this economy when they hedge their bets and set themselves to make millions while those of us who don’t have two nickels to rub together have to spend any money gleamed from the middle class tax cut on fuel for our cars.  These investors/speculators only started to grow a conscientious or wake up after the voices calling for an investigation got louder and louder until one was finally called for by President Obama just recently.   The fact that gold, silver and food prices dropped as well only goes to create the question, could these commodities have always been at the mercy of speculators too? “If this is the case an investigation is even more warranted and needed than it ever has been before.

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