Mr. Math

America's Energy Policy: Coming to Terms with Reality

Dear Mr. Davis-

The "evil speculators" drive up the price of Oil & other commodities - like wheat. While they are doing this, the wheat farmers make real money, correct?

During this year's oil bubble, American oil producers are busy pulling marginal oil out of the ground, new production is being chased, and consumers are engaged in "permanent demand destruction".

Once the oil bubble pops, won't all those "evil speculators" be the ones who get wiped out?

And doesn't every barrel extracted in the U.S., and every whiff of domestic demand destruction lead to an improved balance of trade?

If you're right and the oil bubble is temporary market excess, why complain about these things?