Implementing A Critical Check and Balance Protection Into Our Free Market System To Allow Prices To Stabilize

Here is a position paper I wrote as part of a group of concerned citizens in 2009 who want changes made to the United States’ laws concerning buying and selling products, futures, and speculation.

“Implementing A Critical Check and Balance Protection Into Our Free Market System To Allow Prices To Stabilize”
A Proposed National Policy for Managing The Buying And Selling Of Goods and Materials
April 2, 2009

In a letter dated 10 July 2008, Airline Industry Executives warned its customers of a frightening reason for the unparalleled increase in fuel costs.  In addition to the need for conservation and increasing supplies, the letter commented that “…normal market forces are being dangerously amplified by poorly regulated market speculation.”  The letter goes on to say that “Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery.  Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known.  Speculators buy up large amounts of oil and then sell it to each other again and again.  A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab.  Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.  Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation.  However, over the past two decades, these regulatory limits have been weakened or removed.”  The problem is not limited to oil, and this situation is weakening our economy and our ability to allow the market to truly control prices.  Something must be done to change this.  Wall Street has become the new Las Vegas as gamblers, rather than true investors, influence market behaviors.



The best way to end speculation in stocks or commodities is to force anyone who purchase something to take physical possession of that purchase.  Anyone who purchase a barrel of oil, a ton of wheat, an ounce of silver, 100 shares of stock, etc., must arrange for the delivery of their purchase and take physical delivery of the purchase.  This will make it very difficult for speculators to trade goods and raw materials, leaving those who want to take possession of the item as the primary and only purchaser of the item.  The original producer of the item will still receive at least the same amount of money as before, but the end purchaser will get the item for much less money, allowing the consumer prices to drop considerably.


Anyone selling something must be in physical possession of what they are selling.  Part of the market speculation includes “selling short,” which involves selling an item that the seller does not posses and then buying it back before the original sale transaction has to settle – hopefully at a lower price that the item was sold.  The seller is gambling that the price will drop and that a profit will be made when the item is bought back.  If someone is required to be in physical possession of any item that is sold, selling short will not be possible and one aspect of using the markets for gambling purposes will be eliminated.  Forcing a seller to be in physical possession of any item sold will also prevent the trading of items that are not yet available or have not been produced yet (e.g. futures), which will further help stabilize consumer prices by eliminating the repeated buying and selling of an item for profit before it is delivered to the consumer.


About wbspeirjr

Award-winning author William Speir was born in Birmingham, Alabama in 1962. His first published work is the 2015 "Muzzle-Loading Artillery for Reenactors." In addition to his artillery manual, William has published 19 novels, including a 9-book action-adventure series ("The Knights of the Saltire Series"), five historical novels ("King’s Ransom," "The Saga of Asbjorn Thorleikson," "Nicaea - The Rise of the Imperial Church," "Arthur, King," and "The Besieged Pharaoh"), one fantasy novel ("The Kingstone of Airmid"), one science fiction novel ("The Olympium of Bacchus 12"), one geo-political thriller ("The Trinity Gambit"), and a stand-alone action-adventure novel ("Shiko Unleashed"). William is a 5-time Royal Palm Literary Award winner: 2014 Second Place Unpublished Historical Fiction for "King’s Ransom," 2015 Second Place Unpublished Historical Fiction for "The Saga of Asbjorn Thorleikson," 2017 Second Place Published Historical Fiction for "Arthur, King," 2017 First Place Published Historical Fiction for "Nicaea - The Rise of the Imperial Church," and 2017 First Place Published Science Fiction for "The Olympium of Bacchus 12." William currently serves as the Chief Operating Officer of Progressive Rising Phoenix Press, LLC. For more information about William Speir, please visit his website at
This entry was posted in Odds and Ends and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s