Skip to main content

The Value of Speculation


Speculators, who are often the target of particular scrutiny in terms of weighing on the prices of commodities such as oil, are found to bear negligible weight on the actual price in comparison to fundamental and ancillary drivers such as monetary policy, geopolitical events, and pure supply and demand often spawning from those other drivers. 

Speculators, wherever they are found to influence price directionality, are effectively affording intelligent cautionary signals to producers whose rapacious appetites for profits are tempered in the immediacy for higher gains in a future wherein the utility for the given commodity, as gauged by projected price as a consequence of a climbing demand-to-supply ratio, will be measurably, perhaps desperately greater. 

The reader here must first recognize, however, that speculative activity in today’s financial markets is far more artificially-driven and ubiquitous than in previous, more normal times, today compelled by artificially-low rates of interest in historically-safe fixed-income securities, such as United States Treasury bonds whose yields have effectively turned negative. 

This, along with declining dollar confidence following from consistently anemic economic growth and the ambivalence delivered from the Federal Reserve, forces investors to become more creative in the ways they pursue yields and beat average returns. 

Controlling for these influences, speculators are instrumental in determining the opportunity costs of exhausted resources today, to defer consumption until a later date and potentially for posterity. This serves to effectively meter the consumption of any commodity for uses which are potentially unknown by people who haven't even been born, but nonetheless by people who will ostensibly benefit from the underconsumption to apply the commodity in such fashion which will prove imminently utile.  

Comments

Popular posts from this blog

The Kaepernick Craze: Exposing the Nation's Fools One Conversation at a Time

The Kaeparnick craze and other viral movements haven't merely pressured people into becoming simpler caricatures of their prior selves, but they have manifestly exposed people for how foolish and uninformed they've been all along. 



In his final year in the NFL, Kaepernick ranked 17th in passer rating and 34th the year before that. 

He played through an entire season in only two of his six years in the league, and his best full-season performance ranks far outside of the NFL's top-250 single-season passing performances in the league's history. 

For reference, the oft-criticized Tony Romo posted a career passer rating of 97.1, as compared to Kaepernick's 88.9. 

Romo's passer rating dipped below 90 for only one season of the eleven seasons he played, whereas Kaepernick failed to eclipse the 90 mark on three of his six seasons, a full 50 percent of his time in the NFL. 

In fact, Kaepernick accomplished this feat only once if we are to discard those other two seasons in …

America's Civil War: Not "Civil" and Not About Slavery

Virtually the entirety of South and Central America, as well as European powers Britain, Spain and France, peacefully abolished slavery — without war — in the first sixty years of the nineteenth century. 

Why, then, did the United States enter into a bloody war that cost over half of the nation’s wealth, at least 800,000 lives and many hundreds of thousands more in casualties? 

The answer: the War Between the States was not about slavery. 

It was a war of invasion to further empower the central government and to reject state sovereignty, nullification of unconstitutional laws, and the states’ rights to secession. 

It was a war that would cripple the South and witness the federal debt skyrocket from $65 million in 1860 to $2.7 billion in 1865, whose annual interest alone would prove twice as expensive as the entire federal budget from 1860.

It was a war that would blur the lines and jurisdictions between sovereign states, that would indiscriminately sacrifice the founding principles etched …

Institutional Racism: The Sasquatch of Political Folklore

A great confusion has arisen out of the clamor of political debate, one which presupposes that any dismissal of the merits of “institutional racism” somehow equates to one’s rejection of personal struggle. 

Whereas the struggle of any individual remains always and everywhere unique and wholly personal, his common bond of complexion with others who have struggled serves inadequately as the basis for any argument which regards this commonality as the cause, or as the reason, for that veritable struggle. 

To condemn the unidentifiable and nebulous abstraction, then, by castigating an unnamed institution which persists beyond our specific capacity to recognize its power, serves only to absolve individuals of their personal responsibility, to shift blame and culpability to a specter which exists only by the creative designs of our imaginations, which exists as the scapegoat for all outcomes popularly maligned as undesirable. 

This unactionable practice, then, swiftly and categorically excuses…