Political Speculators

Excellent WSJ editorial:

The futures market may be a convenient scapegoat, but it's simply a price discovery mechanism. Major energy consumers – refiners, airlines – buy and sell these contracts to lock in goods at a future price, as a hedge against volatility.

If Congress interferes with the market, look for even more volatility--and business and jobs to go overseas. Congress should unwind its ruinous moratorium of US energy exploration.

UPDATE: My friend and local trader El Rider at Flying Debris has a good post on this here.

P.S. One note--as the Journal points out, the "Enron" loophole is a bogus issue--it was closed by a provision in the farm bill.

UPDATE: Economist Brain Wesbury, on commodity prices and inflation, in the Chicago Daily Observer here.