Greed is great. Surviving by curtailng oil speculation is even better!

If it not speculation causing out problems we have nothing to lose.

Obviously in a world crying out for oil there is no need for the oil companies and producers to hedge against oil prices increasing. Only those who have to delivery of oil from the oil companies need to hedge their position. Teh world cannot afford to allow  for speculation from your average market punter or hedge fund trader along with the oil companies and producers to lead us to a huge recession. Greed is great. It is the basis that capitalism rund on. But greed that is leading to the system falling down has to be at least temporarily curtailed.

To prevent the continued speculation on oil prices leading to a world wide recession legislation be put in place to make speculating on increasing oil prices decidedly unpalatable. This legislation need not be permanent but could stay in place until we have alternatives to oil and reductions in our use of oil fully sorted. It would not only need to be put in place in The US but in as many countries as the US can convince to join them in doing so. Given every ones concern over the matter this sounds easy. The problem is that the oil companies and their subsidaries all contribute to so many political parties campaign funds. So in order for it to work, it will need to be acknowledged that this is the case and legislation needs to be put in place concurrently stating that the public purse will make up for any differences in funds received from the oil companies and their subsidiaries in the next election compared to those received in the last. This would prevent politicians putting their natural concern for the financial welfare of their party above that of the need to stop this speculation as soon as they can.

Suggested Legislation

1. That only hedging with an underlying position in mind would be allowed by law. That any other use of the futures market for pure speculation be temporarily forbidden with both financial penalities and criminal penalities attached to it.

2. That directors of any financial institution involved in speculation be held accountable by way of receiving a $100,000 fine and one year of week end community service.

3. That any trader involved in the same be afforded the same fines and penalities.

4. That any gains made by any citizen or company through speculation on the price of oil be subject to a 100% tax on the gain plus a 300% penalty fee on the gain.

5. That each citizen or company be made liable for not only direct speculation made by them but for any gains made on their behalf as share holder or unit truster holder in a mutual trust, hedge or superannuation fund.

6. That the names of those caught speculating in oil be published in the various newspapers in large print for all to see for a period of seven days after they are determined to have done so.

7. Claiming that one's gain was inadvertent will not be a defense unless it can be shown that a citizen undertook to determine that they were not gaining from speculation and had duplicitous representations made to them that they relied upon. The duplicitous representations need to be in writing and from an officer of the financial institution involved - not just a receptionist who works there for example.

8.That they be put on notice that the deals on the market will be audited and as much as is practicable will be traced back to their beneficial owners. They need not think that it is unlikely that their gains from any ongoing speculation will go unnoticed.

The announcement of these measures as forthcoming would have an immediate, desired effect on the market in oil futures. Unlike the "Tech" bubble which had a lot of perhaps foolish, misguided or greedy people losing money this bubble is now starting to effect all of us and before any serious damage is done it needs to stop.

The main speculators are of course the owners of the oil and the oil companies. They are speculating through off shore vehicles through money held in Monaco and other tax havens. The money there is then put into mutual funds and hedge funds which in turn invest it in further mutual and hedge funds. This can make a large money trail but following  the money trail of only a few trades meticulously back to off shore funds that we have no control of will still help. Legislation can be put in place to say that these funds are to be black listed if they refuse to say who they have invested on behalf. Any citizen or company investing with these funds will then have to pay a considerable fine if they do so. Any bank dealing with the funds will also have to pay huge fines if they continue to do so after the cut off date for co-operation ends.

To stop speculation by the oil owners and oil companies legislation would need to be introduced to make it the responsibility of the futures market to have the paperwork for the underlying in any trade in oil within 72 hours of that trade taking place. If it is not received then the broker who has handled the trade will become responsible for any cost in closing out the trade if it is in the negative and the broker will pay a tax of 100% on any gain on the trade plus a penalty of 200% for having dealt without having the appropriate paperwork to hand.

Keep in mind that if you fail in this, there will be a huge world recession and these same gentlemen who are behind this speculation, albeit helped by some members of the general public, will then be able to scoop up assets around the world at bargain basement prices with their ill gotten gains.