Eight Democratic Senators are supporting a plan by the Commodity Futures Trading Commission to limit the quantity of futures contracts. These Senators, apparently uneducated in the operation of commodities and futures markets, are supporting the mistaken idea that markets will be more stable if futures trading is limited. Prices of commodities are governed by supply, demand, and the expected future demand based on economic and weather conditions depending on the type of commodity. Professional speculators, who trade the largest contracts, actually help to stabilize markets because they will sell when futures prices are too high and they will buy when futures prices are too low, thereby acting to stabilize the markets.
For the government to interfere in the free action of financial and commodities markets will cause our capital system to require more and more government control until America is another controlled economy like communist China or the other socialist countries of the world. There are always unintended consequences to government interference in the natural operation of the capital system. It is like interference in nature. It always causes imbalance, and other undesirable and unintended consequences.
Here is a list of Senators who supported this action with a letter. Vote against them when they come up for re-election:
Sens. Bill Nelson, Maria Cantwell, Carl Levin, Rebert Menendez, Patty Murray, Bernie Sanders, Sheldon Whitehouse, Ron Wyden.
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