Guest post by Jeff Korzenik
The Commodity Futures Trading Commission (CFTC) began hearings this week on whether or not to constrain speculation in the energy markets. The Commission is considering the broad imposition of “speculative position limits,” traditional rules which have capped the size of positions held by futures market speculators. Far from being an obscure regulatory debate, this issue is of huge importance to all Americans. While many observers now concede that speculation has been a factor in energy pricing, it is crucial that our policymakers understand the dangers inherent in such a market condition. At stake is the ability of our economy to recover, the potential for another systemic financial crisis, and the risks of unleashing destructive inflationary forces.
This week’s volatility in crude oil prices shows just how frail market sentiment is: a run-up to $70 in Brent was 
