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<p>[QUOTE="GDJMSP, post: 649980, member: 112"]My point is that the very same thing is true of ANY commodity. For example, I can purchase pork bellies or wheat futures for next year, or the year after - the pigs are not even born yet and the wheat has not been grown. It does not exist !</p><p><br /></p><p>How is that any different than silver or gold ?</p><p><br /></p><p>Yes, the specualtors are what creates the bubble. They always have, in any market. You name it, and the futures market controls the price of any product. Why ? Because people are betting on it going up - or down. </p><p><br /></p><p>And who are the speculators if not the people ? We are own worst enemies. We are the ones who created this mess. Not Goldman Sachs or any other brokerage house. <b>IT'S US !</b> </p><p><br /></p><p>Now you wanna see a real mess ? Take away the futures market. Wheat farmers will no longer have any reason to grow wheat for next year. Pig farmers will not raise the pigs. Prices will drop clean out of sight. </p><p><br /></p><p>Now you as the consumer say - Hooray ! that's a good thing ! But is it ? What happens when the few farmers that are left go out of business because they can't get a high enough price to even justify planting next year ? What happens when all those people in the supply chain are out of jobs because there are is no wheat or pigs to ship ? What happens when your kids tell you that they are hungry and you tell them - sorry, the grocery store is closed and out of business ?</p><p><br /></p><p>Yes, specualtion in any market is bad, in one way. But the other side of the coin is that specualtion, betting that you can make money on something in future is the driving force that literally keeps all markets alive. It has been for centuries. Take it away and see what happens.</p><p><br /></p><p>Goverment control is not the answer. What market, where prices were regulated by the govt., have you ever seen that was successful and did not blow up in their faces ? Name just one for me.[/QUOTE]</p><p><br /></p>
[QUOTE="GDJMSP, post: 649980, member: 112"]My point is that the very same thing is true of ANY commodity. For example, I can purchase pork bellies or wheat futures for next year, or the year after - the pigs are not even born yet and the wheat has not been grown. It does not exist ! How is that any different than silver or gold ? Yes, the specualtors are what creates the bubble. They always have, in any market. You name it, and the futures market controls the price of any product. Why ? Because people are betting on it going up - or down. And who are the speculators if not the people ? We are own worst enemies. We are the ones who created this mess. Not Goldman Sachs or any other brokerage house. [B]IT'S US ![/B] Now you wanna see a real mess ? Take away the futures market. Wheat farmers will no longer have any reason to grow wheat for next year. Pig farmers will not raise the pigs. Prices will drop clean out of sight. Now you as the consumer say - Hooray ! that's a good thing ! But is it ? What happens when the few farmers that are left go out of business because they can't get a high enough price to even justify planting next year ? What happens when all those people in the supply chain are out of jobs because there are is no wheat or pigs to ship ? What happens when your kids tell you that they are hungry and you tell them - sorry, the grocery store is closed and out of business ? Yes, specualtion in any market is bad, in one way. But the other side of the coin is that specualtion, betting that you can make money on something in future is the driving force that literally keeps all markets alive. It has been for centuries. Take it away and see what happens. Goverment control is not the answer. What market, where prices were regulated by the govt., have you ever seen that was successful and did not blow up in their faces ? Name just one for me.[/QUOTE]
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