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We -- asking somebody right now is there -- sinister force responsible.
For the huge run up an oil prices the CFTC is prepared to war with the -- futures market.
Joining us now -- from foxbusiness.com -- reported on -- proud Dustin you've got a piece -- on the web -- talking about.
The new life that has been breathing into the UC FTC what are they up to him.
What's funny you bring the biggest winner of all these commodity price soaring might be the Commodity Futures Trading Commission it was only three months ago that I.
The secretary treasury secretary of the treasury Henry Paulson was basically reading its obituary was talking about folding it into the SEC.
As part of his wide ranging reform of the entire securities regulatory landscape.
Now -- -- gas hits four dollars a gallon and congress is up and ours because they're getting an earful from their constituencies at home.
And suddenly the CFTC is back in the spotlight where the interest -- things I found reporting my story yesterday is that both supporters of reform.
And detractors of reform -- agree that all the attention now being raised by the CFTC is politically motivated.
But it's you know Clinton and not really cares on the one hand you've got the supporters.
They're glad that this attention is is is falling on this issue.
Because they say the -- the reform has been needed for some time.
Okay but back up for a second -- explain everybody what the CFTC is doing they're going after oil traders -- on foreign exchanges correct your own.
On the foreign exchanges as a problem because there's no transparency or are you guys from -- -- -- -- the familiar with what's called the Enron loophole yet you don't BMI -- the Enron loophole was something that was put into law.
I think in 2000 and what it did need it it it.
-- -- It's not that.
Trading of derivatives on foreign exchange is not to be under the oversight of the CFTC.
So there's a lot of these gigantic.
Energy related derivatives being traded in these overseas market that the CFTC.
Has no oversight of and it's folks like.
I think the gas station owners of the people who actually take physical ownership of these commodities.
Are saying that that lack of oversight has allowed the run up in the prices.
Well then and I'm not a big fan of watching these oil executives be -- before congress every six months I think that's political pandering but this one seems to have some legitimacy legitimacy because.
What is seems like wringing her article on foxbusiness.com.
This is the fact that they are looking that is their collusion going on and that's a legitimate investigation.
It's very difficult to prove however all you've got to do -- look at and collusion with the -- quarterly -- going to be difficult to prove but even George Soros yesterday said that.
You've got these index points and there's sort of a new feature to the commodities markets they work just like -- S&P index fund that had been so popular the last 2530 years however there's not intending can't consequences of these commodities index.
Points ten years ago -- -- S&P 500 funds were were booming and people were suggesting that it was it was a good thing if stocks continue to go up money was coming out of from from pension funds and hedge funds into these S&P 500 funds.
And into the stock.
It's as long as stocks go up nobody has a problem with that yeah you've got to commodity index fund and the the that the derivatives that that the contracts are going up.
While the unintended consequence of that is that the commodity itself is going up and that -- -- down to the consumer and then back the congress and back to regulatory concerns.
You know what you eat it but doesn't have an attorney can't ignore that you know the devaluation of the dollar credit -- it's sort of coincides.
With when the Fed really starts this turn on the -- its last August.
The dollar really start to plummet in value and oil prices really start despite now thirty dollars up this year and that really -- -- overwhelms the fiscal stimulus is about a and quick -- 135 billion annual tax after tax and oil price hike.
And then what's the stimulus is that a 110160.
Billion physically and I think at the end of the day visit him as well against him.
Make a great point at -- the problem with this again.
It's it's it's almost like the housing issue they're there there's an awful lot of people to blame quote unquote or or an awful lot of different reasons don't -- to look at.
Soros himself said yesterday that that speculation is merely a part supply and demand let's go to supply and demand -- -- -- the oil producing countries aren't making its are producing as much -- was -- -- still doesn't.
They let applies to open that stay out of -- right.
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