Big Hedge Funds and Finance centres like London & New York etc. Profiting from Oil and commidities inflation ?

Question

Why do you think - governments in most countries are not vocal or just incompetent in addressing increasing oil prices for example ???

Answer 1

Free market policies dictate that governments should not meddle with commodity pricing.  Not to mention the governments make more on taxes from these corporations and business than they do off you and I.  Sad to say it, these governments should not be doing anything about price increases, aside from sticking to sound monetary policy.  The price increases are demand driven.  We want it, the Chinese want it, and so does everybody else, oil is a precious resource, in great demand.  While there is speculation in the commodities market, it is not the main cause of increasing  prices.  We need oil based products in every sector of the economy; petro-chemicals, plastics, metal, power generation, agriculture, medical, you name it, and somewhere there is a need for oil.  If governments begin to piddle around with price freezes and constraints on demand, there will be a ripple affect across the worlds economies.  Let market forces do what they will.  As we begin to wean ourselves from our oil addiction (and we will, eventually), demand driven and speculatory price pressures will dissipate.

Answer 2

agreed.