| 00:00:03 | NEW DEAL CONGRESS, WHICH THEY PASSED TO PROTECT FARMERS FROM EXCESSIVE SPECULATION. |
| 00:00:10 | ESSENTIALLY, THE DESIGN IS NOT TO -- THE CRITICAL WORD IS "EXCESSIVE" SPECULATION, NOT SPECULATION. |
| 00:00:20 | IN FACT, SPECULATION IS NEEDED FOR THE FARMER, THE PETROLEUM PRODUCER, TO CREATE LIQUID MARKETS WHERE CONTRACTS CAN BE QUICKLY TRADED. |
| 00:00:28 | BUT AS WITH A FUNCTIONING MARKET IS 70% COMMERCIAL, 30% OF SPECULATIVE. |
| 00:00:36 | THE MARKETS ARE NOW 80% SPECULATIVE, 20% COMMERCIAL. |
| 00:00:40 | COMMERCIALS DON'T WANT TO BE IN THIS MARKET ANYMORE BECAUSE IT IS SO VOLATILE. |
| 00:00:47 | THEY CANNOT CONTROL THE PRICE OF MARCH AND BECAUSE THE CONTRACT SHOULD STOP AND THEIR LIFE SAVINGS MAY GO IN THE MARGIN. |
| 00:00:53 | THIS IS ALL SPECULATION. |
| 00:00:55 | THE TWO VEHICLES THAT MANY AGREE -- I PROVIDED ALL THE STUDIES ON THIS -- THAT THE SPECULATORS USE THAT ARE THE QUICKEST, DIRTIEST WAY TO GET INTO THIS MARKET ARE THE COMMODITY INDEX SWAP FUNDS AND THE SYNTHETIC EXCHANGE TRADED FUNDS. |
| 00:01:12 | DON'T WORRY ABOUT A FANCY TITLE. |
| 00:01:16 | WHAT DOES THAT MEAN? |
| 00:01:17 | HE WALKED INTO YOUR BANK -- YOU WALK INTO YOUR BANK AND SAY, "I DON'T WANT TO BUY THIS STUFF. |
| 00:01:26 | I DON'T EVEN KNOW WHAT CRUDE-OIL LOOKS LIKE IT BUYOU ADVISE ME THAT THE PRICES GOING UP SO HERE'S MY MONEY AND I WANT DOLLAR FOR DOLLAR EVERYTHING OF THE UPWARD PRICE. |
| 00:01:42 | " THOSE WALL STREET OPERATIONS ARE LIKE BOOKIES. |
| 00:01:44 | THEY HAVE TO HEDGE THEIR EXPOSURE JUST LIKE A BOOK THE LAYS OFF BETS WHEN IT GETS A ONE-SIDED. |
| 00:01:53 | THEY GO INTO THE REAL FUTURES MARKET, WHERE THE FARMER AND BAKER ARE TRYING TO HEDGE PRICES, AND THEY BUY LONG OIL CONTRACTS SO ON PAPER THEY HAVE CONTRACTS THAT ARE 33 TIMES THE SIZE OF THE REAL SUPPLY OF OIL. |
| 00:02:11 | THAT SENDS A SIGNAL OUT THAT CANNOT BE DEFEATED THAT THERE IS A SUPPLY PROBLEM AND THERE ISN'T. |
| 00:02:21 | YOU CAN'T CUT THIS SNAKE OFF AT ITS HEAD BY SAYING "NO MORE BETTING ON THESE MARKETS. |
| 00:02:32 | " THESE ARE NOT COMMERCIALS MAKING THESE DEBTS. |
| 00:02:35 | UNFORTUNATELY, I HATE TO TELL YOU THIS, THEY ARE PENSION FUNDS, PRIVATE EQUITY COMPANIES, HEDGE FUNDS, BANKS. |
| 00:02:43 | ALL THEY ARE DOING IS LIKE WALKING INTO A BOOKIE SHOP SAYING, "I DON'T WANT TO ON THIS STUFF, I JUST WANT TO BET. |
| 00:02:54 | " YOU CANNOT BET THAT THE PRICE WILL GO UP TO, ONLY THAT IT WILL GO DOWN. |
| 00:03:01 | >> THE LOSERS ARE THE AMERICAN PEOPLE. |
| 00:03:05 | >> THEY ARE CONTINUALLY TOLD IT IS A SUPPLY AND DEMAND PROBLEMS . |
| 00:03:12 | THE CEO OF EXXONMOBIL SAYS $60, $70 A BARREL -- IT IS $110 NOW. |
| 00:03:18 | THE SAUDI KING SAYS YOU ARE WORRIED ABOUT BLOCKING THE STREETS OF HORMUZ? |
| 00:03:23 | WE WILL MAKE UP A BARREL FOR A BARREL EVERYTHING THAT WILL BE LOST. |
| 00:03:26 | BY THE WAY, IN 1973, WHEN OPEC CUT OFF THE WEST FROM ALL OF ITS OIL, WORSE THAN THE BLOCKAGE OF THE STRAITS OF HORMUZ, THERE WAS A FRACTION OF THE VOLATILITY WE ARE SEEING TODAY, AND I CAN GIVE YOU CHARTS THAT SHOW THAT. |
| 00:03:43 | IN APRIL 2011, IT WAS THE ARAB SPRING. |
| 00:03:48 | LIBYA'S 2% PRODUCTION OF OIL IS CAUSING THIS SPIKE, AND THE SAUDIS AGAIN SAID WE WILL MAKE UP THE 2%. |
| 00:03:56 | THE PRESIDENT SAID THIS IS NOT SUPPLY AND DEMAND, THIS IS MARKET MANIPULATION, AND HE WAS RIGHT. |
| 00:04:02 | WHAT ARE YOU STOPPING HERE? |
| 00:04:06 | ARE YOU STOPPING MONEY FROM GOING INTO PRODUCTION? |
| 00:04:07 | ARE YOU STOPPING MONEY FROM PEOPLE CREATING JOBS? |
| 00:04:10 | UNLESS YOU THINK A CASINO, WHICH COMES TO US WITH NAMES LIKE GOLDMAN SACHS AND MORGAN STANLEY ARE JOB CREATORS -- NO, YOU ARE STOPPING BETTING. |
| 00:04:27 | IF WE ARE WRONG ABOUT THIS, IF EVERYTHING WE'RE TELLING YOU IS A MISTAKE, WHAT WILL WE HAVE DONE IF WE STOPPED THE BEDDING? |
| 00:04:34 | WE WILL CLOSE A COUPLE OF CASINOS. |
| 00:04:36 | BUT WE NEED, ANY TIME THERE HAS BEEN A THREAD -- 2008, YOU GUYS PASSED A BILL TO HUNDRED 88-133 TO STOP THE BACKING -- 288-133 TO STOP THE BETTING. |
| 00:04:53 | IS THAT A SUPPLY AND DEMAND RESPONSIBILITY? |
| 00:04:56 | THEN WHEN PEOPLE SAID THAT WE GOT THE PRICE DOWN TO $30, IT SHOT BACK UP TO 75 BY THE SPRING OF 2009 BUT THEN YOU GUYS SAID THAT WE WOULD PASS DODD- FRANK. |
| 00:05:07 | WHEN DODD-FRANK APPEARS TO BE WORKING BECAUSE OF WALL STREET LOBBYING AND LAWSUITS, THE PRICE OF OIL IS BACK UP AGAIN. |
| 00:05:15 | STOP GAMBLING. |
| 00:05:16 | I CAN TELL YOU YOU WILL BRING THE PRICE OF OIL DOWN SUBSTANTIALLY, AND ALL YOUR CONSTITUENTS WHO ARE IN HEARTBREAKING SITUATIONS, WHETHER IT IS GASOLINE, HEATING OIL, ANY DERIVATIVE CRUDE OIL, WILL FIND COMFORT. |
| 00:05:34 | AND WE WILL KEEP THE RECOVERY GOING AND MAKE THE UNITED STATES WHAT IT IS FOR THE FIRST TIME IN DECADES, A LEADER IN WORLD ECONOMIC GROWTH. |
| 00:05:43 | >> THANK YOU VERY MUCH. |
| 00:05:46 | >> THANK |
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