
This is, if you didn't know, a satire of the "Mohammed Cartoons" which was so demonstrated against when a Danish newspaper decided to run a contest promoting the creation of such things. Senate Majority Leader Harry Reid earns this dubious distinction today. The man who would be Mohammed, moving mountains.
I received a press release from Harry Glosenger today. Harry (Glosenger) is the Public Relations guy (hack) for e-VotingBooth.com. Notice the small "e". The small e is derivative from every English major who ever read Edward Estlin Cummings. Or, maybe reads S & M, where the sub is denoted by a lower case, rather than upper case (dom), preposition. (How do I know these things? Does that matter if you've never heard of Cummings?)
Anyway, this press release. I would rather not have the subject of this press release publicized, for the sheer stupidity of its subject.
Senator Harry Reid has introduced legislation designed to move the market for oil off-shore. For anyone who has viewed the movie Trading Places, you know the climax of the movie comes when the company of Duke & Duke--evil capitalists--are victims of an insider trading scam perpetrated by the heroes of the movie--Eddie Murphy and Dan Akroyd. Of course, in the post-modern world this is a case of "just desserts". 'Cause, you know, Murphy and Akroyd are righteous while Bellamy and Ameche really wanted to break the law. This movie is, however, the basis for what most people think the world of commodity speculation really is.
And at the movie's conclusion, Billy Ray and Louis are sipping tropical cocktails while living the good life, all at the expense of the evil capitalists, Duke & Duke.
It is this level of sophistication that Senate Majority Leader Harry Reid brings with his introduction of Senate Bill 3268. Dubbed the Stop Excessive Energy Speculation Act of 2008, Majority Leader Reid presumes that we suspended our disbelief after watching Trading Places and haven't un- or de-suspended it.
According to Harry's (Glosenger) press release, "it is designed 'to amend the Commodity Exchange Act to prevent excessive price speculation with respect to energy commodities, and for other purposes.'”
Sure! And having watched Trading Places five or six times, this only makes sense. Of course, if you talk to the orange growers you might have a much different take on ending price speculation in the commodities market for oranges. When examined through the eyes of the orange grower, Trading Places isn't much of a comedy. But this distinction is lost upon the movie goer.
"Recent media reports have assigned responsibility, in part, for skyrocketing oil and gasoline prices on speculation in commodities markets. One report quoted an analyst saying a barrel of oil could be traded 20 times before it finally gets delivered, driving up the final cost." (Gossinger, Press Release, July 19, 2008.)
Where are Billy Ray and Louis when we need them! Doesn't Harry know--either Harry--that all we need is a street-smart hustler teamed up with a spurned Ivy Leaguer to turn the tables on the bad guys?
I had a prof who had worked the Pit in Chicago. Had I not fallen in love with econometrics I will admit his description had the gloss of a recruiting poster that said, "I Want You!" Working the Pit is among the most demanding jobs in the universe. And wouldn't work without a total commitment to deriving the greatest potential profit from the moment's market transaction. It is only when the rules are broken--in this case by our heroes Billy Ray and Louis--that markets suffer. How many times is a purchase of oranges traded before the "actual" oranges are actually delivered? Who cares? All you want as the consumer is the lowest possible price for oranges.
And that's what speculative markets do. Who do they serve? The consumer. Because, after all, it is the ultimate consumer of a good that determines its actual price.
Nope, it's not the way they show it in the movies. Nor, as I've come to find out, is it the way they teach it in our public schools. And yet every time you head to Safeway, or Costco, or Fred Meyer, you make a decision to either buy, or to buy something else. Likewise, the market for oil.
But Harry Reid knows you don't know that. Otherwise he would have to admit that only the market speculators ensure that we have plenty of oil for those who choose to purchase oil. Being somewhat reliant on my car, I am grateful to these men and women, these, these "speculators"!
What happens when the government intervenes in markets, to legislate winners and losers? Well, we get things like the current mortgage crisis. Or, the Onion Crisis. Ironically, the Onion Crisis was adressed legislatively by a former Republican President. From a Wall Street Journal review by Don Boudreaux.