The Bid to be In The Loop

Every month, CME takes bids to store oil in the LOOP (the Louisiana Offshore Oil Port).

Although these contracts are commodity-futures contracts, buyers bid for storage space to manage the supply (in contango).

Since oil is in overproduction (a recurrent crisis proportion characteristic of capitalism, due to demand destruction, or deflation) there has to be a place to store the supply and sell it later at inflated prices (contango).

Go online at the first of each month and you can buy a LOOP contract through CME, which owns the New York Commodities Exchange. You don’t need to have any oil to store. Just the money to buy a storage contract.

Investment banks, like Goldman Sachs, and now, with the repeal of Glass-Steagall (thanks to President Clinton and his Goldman Sachs working group), big commercial banks, like Bank of America, buy LOOPs for arbitrage. Derivative contracts are created and traded on the commodities exchange.

As the supply of commodity increases, and the price falls, the future value of the derivative contracts increases (resisting the naturally declining rate of profit on demand). Effectively, the value of the contracts measure the future value of the commodity (thus it is, effectively, a futures contract, measuring the value of the surplus, transforming it into capital, now).

Derivative contracts allow the holder to book the marginal profit “now” as a capital gain. “Marked to the market,” the gain then has the infamous “carriage-trade” identity that hedge-funds use to gain a favorable tax rate, resulting in a surplus of funds for that trade, increasing the supply of derivative contracts to resist the declining rate of profit.

The LOOP contract and its derivatives are approved by the SEC and the Commodity Futures Trade Commission. It is considered by the best and the brightest to be the best way to manage the risk in the futures, governed by the law of the land, the Commodity Futures Trade Modernization Act, devised by President Bill Clinton’s economic advisory group, which he signed into law in 1999.

We don’t hear too much about that because it managed to wreck our economy! It has contributed mightily to the income inequality we currently struggle with, still being touted as the best-and-brightest way to do things.

If you want to know what superdelegates are for, they will, for example, be sure “We” have Hillary Clinton, and not Bernie Sanders who says we need to change what causes the inequality rather than just rely on welfare to ease the pain.

What form of government is it if “We” need “super” delegates to control for the probable risk?

It sure isn’t democracy!

Organizing the private party system so that the rules determine the outcome by elite authority IS NOT government by consent.

Look at the way it works.

If Sanders gains the majority vote, the “supers” can override the ignorant masses to protect us from ourselves. We have to pay tribute to the best-and-brightest way to do things. If we don’t, really bad things are sure to happen, right? (Looks more like “superstition” to me! We have progressed well beyond that, haven’t we?)

What are the real stakes?

If we think elitist identity is the natural way to resist mob rule, we are really supporting it. It’s a deliberate tautology, used to support the need for elite identity that, like Sanders says, is just a big fraud!

If we are boxed-in, to vote the way of elite authority, it is democracy?

What is it if we don’t!

(Notice the associative property of the integral value that forms the pure logic of a practical reason–the logic of collective action–identifying the cause with a purpose.)

In the financial realm, just like in the physical world, when the capacity to store the surplus is overvalued there is (yielding to the associative property) a naturally distributive value of equivalent coercive proportion.

The propriety of the risk-value is categorically imperative, determined on demand, naturally existing in priority, in the democratic form.

“Feel the Bern” is only natural and (associatively) “In The Loop.”


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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