by Dr. Jeffrey Lewis
As prices at the pump gradually move back up, one finds no shortage of people calling for new financial regulations. Frequently blamed on speculators, higher gasoline prices are — as some politicians say — the result of lax laws regulating the financial system.
Nevertheless, can it really be only speculators that are driving up the price of oil? Surely, the petroleum market is deeper than that.
Without question, those with very deep pockets can drive up the price of just about any commodity, but typically only for a very short amount of time. Unless of course they have access to a virtually unlimited supply of paper money.