PST: Someone should tell Julia about hot air trading!

PST: Someone should tell Julia about hot air trading!

PST: Someone should tell Julia about hot air trading!
Until recently there has never been commodities trading of hot air: Jews call questionable business Luft - gescheft [Air business]

• Has anyone wondered what commodity one delivers against the contract?
• Who underwrites the contract - given that it about hot air or trading hot air / permits?

Her permits? Give me a break! If the only exchange was legitimate, why would this hypothetical 'legitimate' exchange accept her permits? With her record? Or would hot- air be deemed exchangeable with  Gillard - guaranteed permits? A piece of paper?

Get real - who would trust  her signature? Or someone explain exactly what will / would be the delivered commodity? Thus the basis of commodities trading is the need of a commodity or in the case of say interest rates trading - a fail - safe method of verification! An unimpeachable guarantee to satisfy a legitimate exchange - which then needs to act to ensure a fair, guaranteed  market exists for buyers, sellers and owners of the commodity - who can safely sell their merchandise forward with the blessing of said legitimate exchange, as a hedging instrument.

Can someone please tell Julia that she is officially entering a market she knows nothing about?
To be fair - no one knows anything about how to trade hot air legitimately. Simply because it cannot be legitimate in any sense of the concept. The European  market is a bad joke. On par with Gillard's Labor government in multiple realms. Maybe hundreds of realms / self - made disasters that remain germane  to this brief essay.

Trading hot air or any derivations like buying permits from the moribund  / collapsing European market is plainly stupid. Little does the PM realize that she is defacto supporting this pathetic market: which would have collapsed long ago if it was not for traders realizing that there are some Australian suckers surely willing to buy at up to $23 a ton!
That is why hot air permits / pollution / carbon / price on carbon pollution - whatever you call the greatest scam in the history of the world - is still trading at around $9!

Wow!

Julia promises not to shoot profiteers who can still buy at under $10 and sell it to hapless manufacturers!
Or maybe the larger companies will buy it from the exchange themselves: there will be price opportunities so long as Gillard's Carbon Cops do not execute traders whose profits will be underwritten by this asinine policy!

But there will be no escape for farmers - the PM will soon realize they can sell their permits for merely allowing trees to grow - where trees grew before! Australia will probably starve as the incentive for growing what was regarded in the 'old' days as cash - crops disappeared in hot air!
Even Gillard will recognize the starving hordes marching on Parliament house.

The above has been written without any expertise in the subject of hot air trading: which I guess does not disadvantage me

Geoff Seidner