WHAT IS THE POINT OF GOVERNMENT?

As the price of a barrel of oil continues its trend upward, I cannot help but to think that it is beyond irresponsibility for Congress to continue its routine policies. There is no doubt that the reason for the sudden rise in the price of a barrel of oil is speculative activity in the commodity market for oil. Why is this allowed? Since the general welfare of the country is substantially determined by the price of basic commodities, why allow a small set of gamblers to do injury to the general welfare for a personal, big payoff, as they unload the artificially priced barrel of oil? These people in the commodities markets are there for reasons of greed. Manipulation of prices is the surest way to accomplish the desired end of a big profit. It is so favorable to the manipulators that they have established marketing campaigns that extoll their functional usefulness to the country. They are a pretty "cheeky" bunch.


Why does Congress buy into this self-serving rubbish? If one valid function of government is to protect the general welfare, why are they consistently avoiding their duty? My proposal is that the U.S. government "take over" the entirety of basic commodities, so that these essential goods are dispensed to American interests, such as manufacturers (not speculators, who then continue the old practices one-step-removed), to use in their provisioning of goods to Americans. Nor should the government allow any industry to resell purchased commodities outside of America. The U.S. government would "make a market" in each basic commodity. The government would be allowed a small operating profit to pay administrative costs, storage costs, and miscellaneous costs. The percentage above cost might be set at 2% by law. Everything would be reviewed by the General Accounting Office annually. Also, from its profits it would accumulate from extranational sources those needed commodities required to properly provision the storage facilities it establishes in America.


Several regional storage facilities would be established across the national boundaries of the 48 contiguous states. Each would "make a market" in its region. Prices, however, would be uniform across regional facilities. Why? To preclude a new gambler-network of arbitrage houses. A board might be established to provide oversight of the regional operations. By establishing such a new government mechanism, the general welfare of the nation would be much improved by the mere allotment of commodities at consistently lower prices. To protect the general welfare Congress must move into this essential area. What about the commodity speculators? Send them this message: "Hello! Vegas calling!"






June 15, 2009