Commodity Markets Transparency and Accountability Act of 2008

COMMODITY MARKETS TRANSPARENCY AND ACCOUNTABILITY ACT OF 2008 -- (Extensions of Remarks - August 01, 2008)

SPEECH OF
HON. BETTY McCOLLUM
OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, JULY 30, 2008

* Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise today in support of the Commodity Markets Transparency and Accountability Act of 2008 (H.R. 6604). I commend Chairman Peterson for his hard work on this legislation, which will help curtail the rising oil prices through curbing excessive speculation in commodity futures markets.

* High gasoline prices are burdening American families every day. The conversation on addressing our energy challenge has focused largely around factors of supply and demand. However, the rise in the price of oil cannot be attributed to any one factor. Burgeoning world oil demand, collusive practices of OPEC nations, the weakening dollar, and possible excessive speculation in the energy futures market are all potential contributors to the problem.

* Though we cannot say with certainty whether speculation is driving up the price of oil, Department of Energy officials have observed that the magnitude of price increases is unlikely to result from supply and demand forces alone. They have pointed to excessive speculation as a likely contributor to inflated oil prices. In the face of this possibility, Congress should act now, without disrupting healthy market activity, to close loopholes and prevent excessive speculation from driving up prices and increasing hardship for American families.

* The Commodity Markets Transparency and Accountability Act enhances the regulatory capacity of the Commodity Futures Trade Commission (CFTC). Through increased staffing, closing corporate loopholes, and setting position limits for individuals, CFTC will be better equipped to address the problem of high energy prices that are burdening American families. The Commodity Markets Transparency and Accountability Act also directs the Government Accountability Office to conduct a detailed study of speculators' effects on agriculture and energy futures markets and prices. Along with acting proactively to prevent potential excessive speculation today, this bill will allow for a better understanding of what the effects of speculation have actually been.

* The Commodity Markets Transparency and Accountability Act takes bold steps to curb excessive speculation that may be contributing to the hardships American families are facing today. I urge my colleagues to support this bill.

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