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"Frontrunning" Against Humanity in the Oil Markets

Frontrunning is a term for an often illegal, always immoral practice in commodity and other markets. Speculation leads directly to hardship, starvation, death and warfare. Congress' vote exposes a faulty methodology- an ideaology based on false axioms.
A false view of markets has been strongly promoted, not questioned, with its negative effects not understood. This gives markets a sacred character.

Stephen Zarlenga is director of the American Monetary Institute offering articles like "A Short History of the US, Part 1," "Economics Has Become a Clandestine Religion," and "Why Philosophers Should De-Certify Economics as a Science." His book is titled "The Lost Science of Money."

to read Stephen Zarlenga's article, click on
 http://www.monetary.org/frontrunninghumanity.html

homepage: homepage: http://www.mbtranslations.com
address: address: http://www.monetary.org


Improper definition 07.Aug.2008 05:21

Mike Novack

The term "frontrunning" refers to knowledge of coming transactions that is NOT part of "public information" and then acting on the basis of that information to profit.

It does NOT apply to acting based upon public information available to all -- the supply of oil is running out while demand remains so the price will sooner or later rise, buy now and eventually profit.

The trick (and why it always seems like a speculation bubble even when the real permanent increase comes) is that the way to MAXIMIZE the profit is to wait till the last minute before buying in. Then in the meantime, your money can be making money somewhere else and there will be a bigger pot to invest in THIS rise. But there is also the chance of waiting too long and missing the boat. The result is a "follow me" rush. Once some jump in, the rest immediately follow like lemmings not to miss out. Worst case scenario it really is too early yet (a "bubble") but there is still a chance to profit by recognizing THAT in time and getting out before the bubble pops.