Three entities effect the price of oil: OPEC, oil speculators and oil companies. 1. Create an alliance of the countries which are oil consumers to counteract OPEC. An alliance can open oil reserves at the right moment or even short oil in the market. 2. Ben Laden was calling for $150 oil. Goldman Sachs, Morgan Stanley - for $200 oil. Saudi Arabia recently called for $70 oil. To decrease speculation:
a. Increase margin requirements to a set maximum (oil only, let them speculate on other commodities.)
b. Ban leveraged oil ETF‘s.
c. Establish transaction tax on oil purchases.
d. Substantially raise taxes on automobile guzzlers.
e. Remove the status of banks for Morgan Stanley/Goldman Sachs.
f. Require that buyers of oil contracts have the physical ability to take actual delivery of oil.
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