Thank you!
Your support is sustaining the future of local news in our communities.

Global financial speculation: the short-selling of America

Part 2 of 2 - The Solution

The futures market, particularly what are called commodities futures, originally served laudable purposes.

Futures purchases permitted farmers, miners, energy producers, manufacturers and others to go ahead and plant crops, explore for resources, create energy and make products of value to society, knowing in advance that they could count on future marketability to customers and consumers. These were what we might call long sales. They were bets in favor of the future.

But nothing cannot be gamed. Along came the likes of Enron, who used the futures purchase and sales techniques to corner the energy market. Enron gave up being a producer of energy and they certainly never were a consumer. They found a way to become middlemen profiteers.

By using leveraged financing and buying forward even before the energy had been produced, Enron could drive up the price of energy for their own benefit. Later, when it came time for a California school district to buy energy for their schools, schools had to buy at the artificially high prices Enron had falsely created. Today, Wall Street and the hedge funds are accomplishing much the same thing.

It is reliably estimated that over 30 percent of the price of gasoline at the pump today is not due to imbalance in supply and demand, but is due solely to Wall Street, hedge fund, Enron and Ponzi-style trading in global financial markets.

These investors do not sow, nor do they weave or spin, but they do reap. Using their wealth and leverage, they buy up all available fuel ahead of time, in effect monopolizing the free market and driving up the price for everyone else. Then they cash in, all the way to the bank. This has to be regulated.

Just when you might expect the effect of such financial futures speculation should at least be to always drive up prices and favor industry, along came the global financial speculators and hedge-funders who bet against stocks, bonds, derivatives, mortgages, currencies, products, industries and whole economies.

The short sellers win if such ventures fail. They win if the economy fails. They win if America fails — provided they take their loot out on time. Loyalty to country does not enter the picture. It’s time to change how the game is played.

Should we weep tears for the global financial speculators who game the system? They are notorious for tax avoidance (questionable ethics) and tax evasion (criminal behavior), which together more than account for the entire U.S. national debt. Therefore, why should we hesitate to reduce tax breaks for the super-wealthy? They buy and sell, flip and gamble, trillions of dollars a year and pay no sales tax.

The sensible answer, of course, would be to adopt a 1 percent securities and financial transaction tax (like a sales tax) on such high volume speculation. A 1 percent transaction tax on a $200 trillion market turnover would yield $2 trillion in additional U.S. revenue in a short period of time.

That alone would wipe out the U.S. national debt in no time and restore America to permanent solvency. There would be no need to cut social programs or ever worry again about the national debt ceiling. Problem solved.

Nevertheless, the utility, integrity and legality of many of these current financial products and practices need to be comprehensively reviewed with a view to introducing responsible regulation and control in the national interest.

We need to seriously consider in particular whether any form of short selling or betting against an enterprise, investment vehicle, the economy or the nation, should be permitted in the absence of proof of an underlying commercial or other useful social or economic purpose.

Who will enforce this? What we need is a powerful, independent, executive administrative enforcement authority, a sort of combined SEC/CFTC/CFPB with real teeth, to determine what investment products and practices have legitimate underlying purpose, such as the financing of commercial transactions, and what products and practices are deceptive and counter-productive, serving only middle-man speculative gambling purposes, putting the national economy and markets at pointless risk.

The devil will reside in the details, but we’ll have to be willing to address those details in the national interest. Otherwise, the United States will be subject to future roller coaster cycles of booms and busts, for the enrichment of the already wealthy speculators and at the expense of most Americans.

One day, we may never be able to pull out of the bust. We have to clean house now. Let’s do it. Let’s not short sell America.

Sharon resident Anthony Piel is a former director and general legal counsel of the World Health Organization.

Latest News

Fallen tree downs power lines, blocks Route 112

Eversource crews work to repair damaged power lines after a tree fell near onto Route 112 just north of the Interlaken Inn on Monday, June 22.

Photo by Nathan Miller

LAKEVILLE — A tree fell on Route 112 Monday, June 22, downing power lines and blocking traffic north of Route 41 near the Hotchkiss Four Corners.

Eversource crews on scene at 4:45 p.m. said power lines were being repaired and utility service had been restored to customers in the area.

Keep ReadingShow less

Francis Lynehan

Francis Lynehan

DOVER PLAINS — Francis “Butch” Lynehan, 75, a twenty-year resident of Dover Plains, New York, formerly of Sharon, passed away unexpectedly on Thursday, May 7, 2026 at Vassar Bros. Medical Center in Poughkeepsie, New York.

Born Aug. 29, 1950, in Sharon, he was the son of the late William W. and Nellie (Kluun) Lynehan.

Keep ReadingShow less

Richard McGriff

Richard McGriff

TACONIC — Richard McGriff died unexpectedly on May 16, 2026. This is a collection of loving reminiscences.

With a smile like that and a laugh like that and a soul like that, how could you not love him? Macey Levin and Gloria Miller

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

Juneteenth graduation celebrates Berkshire’s next generation of leaders

Cohort 2026 members Abigail Horace, Adam Liccardi, Adrian Lynch, Cameo Brown, Chauncey Dozier, Claudette Grant, Erline Saintilet, Harmony Edwards, Kamayue Gomes, Mackenzie Colvin, Otis West, Shadre Domingo, TJ West and Tyeesha Keele-Kedroe and Blackshires’ leadership team John Lewis, Patrick Danahey, Dubois Thomas and Julie Haagenson gather at the Blackshires City Hall Fishbowl alongside Mayor Peter Marchetti and city officials Michael Obasohan, Brandon Gill, Katherine VanBramer, Heather Brazeau, Justine Dodds and Jesse Tobin McCauley.

Provided

When designer Abigail Horace joined the Blackshires Leadership Accelerator, she was looking for support for her business, Casa Marcelo, which was founded in Salisbury in 2019. Through the Accelerator, she created the Black Berkshires Social Club, which creates culturally grounded social spaces for Black and BIPOC residents in the region. Throughout her experience, Horace found a community of peers invested in one another’s success.

“Finding Blackshires has been transformative,” Horace said. “Being a BIPOC founder in this region can feel isolating, and this community has changed that. They see my work, champion my business and have opened doors I couldn’t have opened alone.”

Keep ReadingShow less
Forged by curiosity: Art, craftsmanship and big fun with Izzy Fitch

Izzy Fitch at Battle Hill Forge in Wassaic.

Madi Long
I’m not really inventing anything new. I just tweak it a little bit.— Izzy Fitch

A steel praying mantis stands among garden accents at Battle Hill Forge in Wassaic, its folded forelegs ready for prayer and mischief in equal measure.

“She’s very nice,” said blacksmith, sculptor and Battle Hill Forge owner Izzy Fitch, patting the giant insect affectionately. Then he added, “Just don’t go out to dinner with her.”

Keep ReadingShow less
Unexpected subjects, familiar beauty in new Kent exhibits
Millerton-based artist Alexis England with her flamingo and mandrill portraits at Peggy Mercury in Kent.
D.H. Callahan

Kent Barns was alive with art on Saturday, June 13, as three new shows opened at Peggy Mercury and Kenise Barnes Fine Art, featuring a variety of fascinating paintings and drawings from four local artists.

Peggy Mercury, which in just two years has earned a reputation for curating remarkable collections of fine beauty products and accessories, continues to find exciting art to complement its offerings. The new show, “Portraits,” features four pairs of paintings by Millerton-based artist Alexis England. The “portraits” she paints, however, feature some pretty unexpected sitters.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.