Comment Text:
Dear CFCT,
The main points are below (items 'a' and 'b'):
a. In order to avoid food and energy price bubbles like those which occurred in 2008, the CFTC should implement the proposed speculation limits.
b. Only give exemptions to businesses that deal in physical commodities (like farmers, gas stations, etc.). Do not give any exemptions to banks, hedge funds or other financial players.
Congratulations on attempting to implement the Dodd-Frank Act as thoroughly as possible, especially reforms aimed at limiting excessive speculation in food and energy commodities.
There are many factors contributing to today’s highly volatile commodity prices, but it is clear that excessive speculation is partially responsible as indicated by the studies undertaken by members of respected institutions such as Princeton, MIT, Citigroup, the Petersen Institute, the University of London, Yale, UNCTAD, the FAO, and the U.S. Senate.
I urge the Commission to implement the proposed rules regarding aggregate speculative position limits to prevent excessive speculation. At this time of fragile economic recovery, we cannot allow speculators to ever affect our food and energy prices. Food is a necessity of which far too many do not receive enough to live. It is time to squash the parasites!
Congress called for exemptions from these limits for bona fide hedgers. I ask that the Commission define that term in the strictest sense possible, limiting exemptions to businesses that deal in physical commodities and use markets to hedge commercial risk in those commodities. Banks, hedge funds, private equity and all passive investors in commodities should not be deemed as bona fide hedgers. Institutions hedging price directional bets such as commodity index swaps, Exchange Traded Funds and Exchange Traded Notes also should not be considered as bona fide hedgers.
Humanity first - NOT profit.
Thanks and regards.
