Wall Street has found a new market to manipulate – and if no one puts an end to it, it’s going to cost you at the pump.
Eight years ago, the federal government created an energy market with ethanol credits, to encourage energy providers to mix their fuel with ethanol. The idea was to help curb our dependence on foreign oil, to encourage the creation of green energy, and to give a boost to American farmers. Energy companies can purchase the credits from the market, or from other companies that mix their fuel with ethanol.
The problem is, the energy markets aren’t well regulated, and since the credits are tied to fuel creation, they’re very lucrative. This is where Wall Street comes in.
Since the prices vary and there’s little oversight, groups on Wall Street have been buying up and hoarding the credits, and then selling them to energy companies at high prices. The rules that used to stop this practice were stripped away by deregulation, and companies acquire the credits through their oil-blending subsidiaries.
As all of this trading and price fixing continues, the cost of energy rises. Right now, the energy companies are covering the costs of the ethanol credits. But soon, these higher credit prices will drive the price of energy higher. This will make the cost of gas for cars and homes even higher than it already is, just in time for winter.
Wall Street has already made a mess of our economy. We can’t let them make a mess of our energy too.
From Alex Palombo
American Family Voices
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