Gov't controlled commodity prices? - CFTC to deliberate

BLOOMBERG ARTICLE

"U.S. regulators say they may clamp down on oil and gas price speculators by limiting the holdings of energy futures traders, including index and exchange-traded funds.

The Commodity Futures Trading Commission will hold hearings this month and next to explore the need for government-imposed restrictions on speculative trading in oil, gas and other energy markets, Chairman Gary Gensler said today in a statement.

The hearings come amid increased scrutiny of the impact of speculators on oil prices. Senator Bernie Sanders, a Vermont independent, and Representative Bart Stupak, a Michigan Democrat, blame speculators for last year’s surge in crude-oil prices to a record $147.27 a barrel and called for CFTC action to avert a repeat. Oil has climbed 41 percent this year in New York trading, while demand has dropped and inventories climbed... "

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I think this will become a very large focus of the obama administration as the US inflation begins to rear its ugly head in commodities and metal prices. This would be more direct control over market forces much in the same way that short selling was banned back in sept of 08, which is more or less a rather obvious attempt to control prices. If this doesnt happen this summer id still keep a rather close eye on this as a possibility in 2010 and beyond as our inflation and unemployment figures reach truly frightening levels (beyond what they already are?)