Posted by MarkB_MI on March 18, 2012 at 08:23:22 from (166.203.31.208):
In Reply to: Who controls the gas? posted by workhorse on March 18, 2012 at 07:51:45:
Would you believe supply and demand?
Yes, there are speculators. Gasoline futures are sold on the New York Mercantile Exchange, and you too may play that game if you have the money and gumption to try. Speculators are an essential part of the commodities market; there needs to be somebody to take the other side of every trade, without speculators the commodities markets would be less stable. Sometime speculation does get out of hand, driving prices to unsustainable levels; when that happens, it's the speculators who get burned, as every bubble must burst.
If you have an alternative to commodities futures market as a way to stabilize fuel prices, I'd like to hear it. Are you perhaps suggesting government price controls?
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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