Gingrich's American Solutions Defends Oil Speculators
On July 29, 2009, former Speaker Newt Gingrich's American Solutions for Winning the Future published a piece opposing new regulations for oil speculators. In reality, American families deserve a government that will protect their interests against the looming greed of Wall Street and Big Oil.
American Solutions Fervently Defends Oil Speculators
Former Speaker Newt Gingrich's American Solutions for Winning the Future, of "Drill Here, Drill Now" fame, recently published a piece fervently defending oil speculators from charges that they contribute to the volatility of energy prices.
American Solutions wrote:
What drove prices to record levels last summer was not a nefarious attempt by Wall Street traders to drive up costs, but rather a product of demand outpacing supply.
However, the Washington Post reported that, Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC), "has said he thinks speculators have helped to boost the price of oil. In the interview, he said he hopes that his agency could officially propose new rules in the fall to govern energy speculation."
Even industry insiders, who are generally opposed to new regulations, believe the activities of oil speculators must be monitored more closely.
Sean Cota, treasurer of the Petroleum Marketers Association of America, whose members witness firsthand the devastating effects of oil speculation, endorsed the new regulations, saying:
"It is abundantly clear that large-scale, institutional investors speculating in the energy markets continue to act as the driving force behind energy prices."
An Opportunity To Break With The Past
American Solutions also notes:
... this development contradicts what the CFTC said as recently as last year, when it determined that speculation was not to blame for the soaring oil prices.
That is 100% correct.
Under the Bush administration, the CFTC was opposed to further regulating oil speculation. It is no coincidence that under the same administration, rising gas prices forced the average American household to spend an extra $960 per year.
Unlike past commission members, Chariman Gensler believes the CFTC's mission "is to make sure that the markets are fair and orderly."
A CFTC decision to keep an eye on oil speculators would serve as a clean break with the disastrous energy policies of the Bush administration. During tough economic times, American families deserve a government that will protect their interests against the looming greed of Wall Street and Big Oil.
