Saturday, June 25, 2011

Not Always Supply & Demend

           As everyone knows for the past few years gas prices is through the roof.  These outrages prices has impacted every single persons salary and spending. In the agriculture world it has come at a hard burden. Basically every aspect of a farmers job has to deal with machinery and gasoline or diesel. Such things as higher cattle liner prices to haul cattle out to pasture, less of a margin at the packers and all around more of a cost to run every day farm equipment. 
          Most people think these high gas prices are a product of supply and demand, but this is not the case. the problem is in Toronto and New York. While All gas is sold by the barrel In either the TSX or NYSE while 70% of the gas is sold  as Futures, and 30% percent is sold on the marked. This percent of Futures sold is at a record high and is the True cause of all the high prices. The true rate of futures that should be sold is around 30%. Many people along with myself feel this is unfair to the average citizen, steps need to be taken to ensure Futures buying and selling stays at a fair level, the Government of Canada is on the edge of setting laws to take control of futures buying. You can help, by sending a letter or email to you local  member of parliament or an advisor on the senate and with enough support this crisis can be put to rest!

2 comments:

Terri Mappin said...

Hi Hal, thanks for following my blog! Your blog looks great and I like the articles you've written so far! Keep up the great work and I'll pass your link on! Congrats on being a blogger!

Hopelessly Channy said...

Hey! Thanks so much for following :D I'm glad you like my blog! And yours looks great, I think you'll be amazing at this. :)

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