Commodity Market Futures Quotes

Industrial capitalism transformed nature’s raw materials into commodities, and surveillance capitalism lays its claims to the stuff of human nature for a new commodity invention. Now it is human nature that is scraped, torn, and taken for another century’s market project. It is obscene to suppose that this harm can be reduced to the obvious fact that users receive no fee for the raw material they supply. That critique is a feat of misdirection that would use a pricing mechanism to institutionalize and therefore legitimate the extraction of human behavior for manufacturing and sale. It ignores the key point that the essence of the exploitation here is the rendering of our lives as behavioral data for the sake of others’ improved control of us. The remarkable questions here concern the facts that our lives are rendered as behavioral data in the first place; that ignorance is a condition of this ubiquitous rendition; that decision rights vanish before one even knows that there is a decision to make; that there are consequences to this diminishment of rights that we can neither see nor foretell; that there is no exit, no voice, and no loyalty, only helplessness, resignation, and psychic numbing; and that encryption is the only positive action left to discuss when we sit around the dinner table and casually ponder how to hide from the forces that hide from us.

No one is alone in this world. No act is without consequences for others. It is a tenet of chaos theory that, in dynamical systems, the outcome of any process is sensitive to its starting point-or, in the famous cliche, the flap of a butterfly's wings in the Amazon can cause a tornado in Texas. I do not assert markets are chaotic, though my fractal geometry is one of the primary mathematical tools of "chaology." But clearly, the global economy is an unfathomably complicated machine. To all the complexity of the physical world of weather, crops, ores, and factories, you add the psychological complexity of men acting on their fleeting expectations of what may or may not happen-sheer phantasms. Companies and stock prices, trade flows and currency rates, crop yields and commodity futures-all are inter-related to one degree or another, in ways we have barely begun to understand. In such a world, it is common sense that events in the distant past continue to echo in the present.

Once an exchange-ratio between money and commodities has been established in the market, it continues to exercise an influence beyond the period during which it is maintained; it provides the basis for the further valuation of money. Thus the past objective exchange-value of money has a certain significance for its present and future valuation. The money-prices of to-day are linked with those of yesterday and before, and with those of to-morrow and after.

deeply into pile carpeting that threatens to swallow us whole. A burnished steel FTW logo stretches across the wall with the tagline Feeding the World just below it. Black-and-white photos of basic foodstuffs dot the walls—bushels of maize and soybeans, fields of grain. Feeding the world, my ass, I think as we’re shuttled toward a meeting room. I’ve done some reading up on these folks. FTW is a commodity-trading firm that works to manipulate the futures market to drive up prices. There seems to be nothing that the world’s bankers believe they shouldn’t be free to exploit, including food staples. I imagine that in their perfect world, bankers would pocket a penny or two with every bite.

Goldman Sachs hoards rice, wheat, corn, sugar and livestock and jacks up commodity prices around the globe so that poor families can no longer afford basic staples and literally starve. Goldman Sachs is able to carry out its malfeasance at home and in global markets because it has former officials filtered throughout the government and lavishly funds compliant politicians—including Barack Obama, who received $1 million from employees at Goldman Sachs in 2008 when he ran for president. These politicians, in return, permit Goldman Sachs to ignore security laws that under a functioning judiciary system would see the firm indicted for felony fraud. Or, as in the case of Bill Clinton, these politicians pass laws such as the 2000 Commodity Futures Modernization Act that effectively removed all oversight and outside control over the speculation in commodities, one of the major reasons food prices have soared. In 2008 and again in 2010 prices for crops such as rice, wheat and corn doubled and even tripled, making life precarious for hundreds of millions of people. And it was all done so a few corporate oligarchs, the 1 percent, could make personal fortunes in the tens and hundreds of millions of dollars. Despite a damning 650-page Senate subcommittee investigation report, no individual at Goldman Sachs has been indicted, although the report accuses Goldman of defrauding its clients.319

The ownership of land is not natural. The American savage, ranging through forests who game and timber are the common benefits of all his kind, fails to comprehend it. The nomad traversing the desert does not ask to whom belong the shifting sands that extend around him as far as the horizon. The Caledonian shepherd leads his flock to graze wherever a patch of nutritious greenness shows amidst the heather. All of these recognise authority. They are not anarchists. They have chieftains and overlords to whom they are as romantically devoted as any European subject might be to a monarch. Nor do they hold as the first Christians did, that all land should be held in common. Rather, they do not consider it as a thing that can be parceled out. “We are not so innocent. When humanity first understood that a man’s strength could create good to be marketed, that a woman’s beauty was itself a commodity for trade, then slavery was born. So since Adam learnt to force the earth to feed him, fertile ground has become too profitable to be left in peace. “This vital stuff that lives beneath our feet is a treasury of all times. The past: it is packed with metals and sparkling stones, riches made by the work of aeons. The future: it contains seeds and eggs: tight-packed promises which will unfurl into wonders more fantastical than ever jeweller dreamed of -- the scuttling centipede, the many-branched tree whose roots, fumbling down into darkness, are as large and cunningly shaped as the boughs that toss in light. The present: it teems. At barely a spade’s depth the mouldy-warp travels beneath my feet: who can imagine what may live a fathom down? We cannot know for certain that the fables of serpents curving around roots of mighty trees, or of dragons guarding treasure in perpetual darkness, are without factual reality. “How can any man own a thing so volatile and so rich? Yet we followers of Cain have made of our world a great carpet, whose pieces can be lopped off and traded as though it were inert as tufted wool.

Learning to meditate helped too. When the Beatles visited India in 1968 to study Transcendental Meditation at the ashram of Maharishi Mahesh Yogi, I was curious to learn it, so I did. I loved it. Meditation has benefited me hugely throughout my life because it produces a calm open-mindedness that allows me to think more clearly and creatively. I majored in finance in college because of my love for the markets and because that major had no foreign language requirement—so it allowed me to learn what I was interested in, both inside and outside class. I learned a lot about commodity futures from a very interesting classmate, a Vietnam veteran quite a bit older than me. Commodities were attractive because they could be traded with very low margin requirements, meaning I could leverage the limited amount of money I had to invest. If I could make winning decisions, which I planned to do, I could borrow more to make more. Stock, bond, and currency futures didn’t exist back then. Commodity futures were strictly real commodities like corn, soybeans, cattle, and hogs. So those were the markets I started to trade and learn about. My college years coincided with the era of free love, mind-expanding drug experimentation, and rejection of traditional authority. Living through it had a lasting effect on me and many other members of my generation. For example, it deeply impacted Steve Jobs, whom I came to empathize with and admire. Like me, he took up meditation and wasn’t interested in being taught as much as he loved visualizing and building out amazing new things. The times we lived in taught us both to question established ways of doing things—an attitude he demonstrated superbly in Apple’s iconic “1984” and “Here’s to the Crazy Ones,” which were ad campaigns that spoke to me. For the country as a whole, those were difficult years. As the draft expanded and the numbers of young men coming home in body bags soared, the Vietnam War split the country. There was a lottery based on birthdates to determine the order of those who would be drafted. I remember listening to the lottery on the radio while playing pool with my friends. It was estimated that the first 160 or so birthdays called would be drafted, though they read off all 366 dates. My birthday was forty-eighth.

What is certain is that the immutable classes, the nobility, the clergy, the bourgeoisie, the people, had loftier souls at that time. You can prove it: society has done nothing but deteriorate in the four centuries separating us from the Middle Ages. "True, a baron then was usually a formidable brute. He was a drunken and lecherous bandit, a sanguinary and boisterous tyrant, but he was a child in mind and spirit. The Church bullied him, and to deliver the Holy Sepulchre he sacrificed his wealth, abandoned home, wife, and children, and accepted unconscionable fatigues, extraordinary sufferings, unheard-of dangers. "By pious heroism he redeemed the baseness of his morals. The race has since become moderate. It has reduced, sometimes even done away with, its instincts of carnage and rape, but it has replaced them by the monomania of business, the passion for lucre. It has done worse. It has sunk to such a state of abjectness as to be attracted by the doings of the lowest of the low. ...cupidity was repressed by the confessor, and the tradesman, just like the labourer, was maintained by the corporations, which denounced overcharging and fraud, saw that decried merchandise was destroyed, and fixed a fair price and a high standard of excellence for commodities. Trades and professions were handed down from father to son. The corporations assured work and pay. People were not, as now, subject to the fluctuations of the market and the merciless capitalistic exploitation. Great fortunes did not exist and everybody had enough to live on. Sure of the future, unhurried, they created marvels of art, whose secret remains for ever lost. "All the artisans who passed the three degrees of apprentice, journeyman, and master, developed subtlety and became veritable artists. They ennobled the simplest of iron work, the commonest faience, the most ordinary chests and coffers. Those corporations, putting themselves under the patronage of Saints—whose images, frequently besought, figured on their banners—preserved through the centuries the honest existence of the humble and notably raised the spiritual level of the people whom they protected. ...The bourgeoise has taken the place forfeited by a wastrel nobility which now subsists only to set ignoble fashions and whose sole contribution to our 'civilization' is the establishment of gluttonous dining clubs, so-called gymnastic societies, and pari-mutuel associations. Today the business man has but these aims, to exploit the working man, manufacture shoddy, lie about the quality of merchandise, and give short weight. ...There is one word in the mouths of all. Progress. Progress of whom? Progress of what? For this miserable century hasn't invented anything great. "It has constructed nothing and destroyed everything...

In the bad old days, when we spent most of our time, you know, trying not to die, pleasure was limited and practical. Nowadays, it's a commodity, marketed as a substitute for happiness, and it's on demand. Thanks to our ability to rapidly adapt, even the most pleasurable experience or purchase quickly becomes the boring new normal.

The common thinking is that you can’t possibly sell something before you own it, and even if you could, some interest likely would be charged for borrowing the asset that you intend to sell. Although that might be true in stock trading, that logic doesn’t apply to the futures markets.

Just as you pay a commission to the retail broker who took your order or provides you trading access via an electronic platform, the market maker must be paid in the form of the bid/ask spread. Think about it: If as a retail trader you are always paying the ask and selling the bid, you are a net loser even if the price of the futures contract remains unchanged.

But even the biggest Wall Street banks were at a disadvantage when they went up against the traders at Koch Industries, British Petroleum, or Amoco. The Wall Street banks didn’t have access to inside information. Goldman Sachs didn’t own refineries or pipelines and couldn’t get a sneak peek into where markets were headed. The banks had to resort to second-rate information that was publicly available, like government reports on monthly energy supplies. It was a losing proposition. In the mid-1990s, the Wall Street banks came to Koch Industries, asking for help. “We kept getting approached by banks, who say, ‘Hey, Koch. You guys are so good at this physical stuff, we’d like to partner with you,’ ” recalled a former senior Koch executive who was heavily involved in trading operations. The banks came to Koch with the same pitch: the banks would handle “all this financial stuff,” while Koch handled the physical end of trading and shared information from its operations. If Koch executives were flattered by the attention from Wall Street, they didn’t show it for long. “We kind of got curious—or, suspicious is the better term,” the executive recalled. Rather than help the banks out, Koch set up a team to study why the banks were so interested in their business. Koch hired the outside consulting firm McKinsey & Company to study what was happening in commodities markets during the 1990s. McKinsey reported that the world of trading had grown even larger and more profitable than Koch Industries had suspected. As it happened, the futures contracts that Koch was trading had become the “plain vanilla” products in a rapidly booming market. Now there were more exotic, more opaque, and far more profitable financial products on the market. These products were called “derivatives.” That’s where the real money was.

Despite arguments against speculation and its place in the commodity markets that shape our economy—and, therefore, our lives—without it, producers and users of commodities would have a difficult time facilitating transactions. Thanks to speculators, there is always a buyer for every seller and a seller for every buyer. Without them and the liquidity they provide, hedgers would likely be forced to endure much larger bid/ask spreads and, in theory, price volatility. Consumers would also suffer in the absence of speculators simply because producers would be forced to pass on their increased costs to allow for favorable profit margins.

Buffett’s 1952 memo on Cleveland Worsted Mills mentioned that the stock traded below net current asset value and had “several well-equipped mills.”98 He thought the company had ample earnings to cover the dividend, a view supported by the summary financials found in Table 1. The company paid $8.00 a share out to shareholders, and the last year the company earned below this figure was 1945.99 The income and return on capital figures were a little concerning. Like Marshall-Wells in the first chapter, Cleveland Worsted Mills was coming off the post-World War II highs and falling back to earth, earning a respectable but not extraordinary return on invested capital in 1951. Worsted was a commodity product, with shortages the sole reason for the company’s previously rising income and returns on capital. As the market normalized, the company was unlikely to earn above-average returns on capital in the future.

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Still, one could argue—and many did—that Greenspan, at least, had no business being quite so shocked. Over the years, countless people had challenged his deregulatory dogma, including (to name just a few) Joseph Stiglitz and Paul Krugman, both Nobel Prize–winning economists, and Brooksley Born, who was head of the Commodity Futures Trading Commission from 1996 to 1999. Born eventually became something of a Cassandra figure for the crisis, since she repeatedly called for regulating the market for derivatives, those ultracomplex financial products that eventually helped bring down the economy. Those calls were silenced when Greenspan, along with then-Treasury Secretary Robert Rubin and then-Securities and Exchange Commission Chair Arthur Levitt, took the extraordinary step of convincing Congress to pass legislation forbidding Born’s agency from taking any action for the duration of her term.

The opportunity to develop competencies may be handed to us in the form of a crisis, as was the case with Brooksley Born, the first female president of the Law Review at Stanford, the first female to finish at the top of the class and an expert in commodities and futures. Charged with the oversight of the U.S. government’s Commodity Futures Trading Commission (CFTC) by the Clinton Administration, Born could foresee what would happen if there wasn’t more regulatory oversight in the multitrillion dollar derivatives markets. Yet no one in government or in the financial markets would listen; in 2008 alone, the U.S. market lost about $8 trillion in value. She has since been dubbed the “Credit Crisis Cassandra.” In Greek mythology, Cassandra was given both the gift of seeing the future and the curse of having no one believe her predictions. In the case of Brooksley Born, the attacks by very powerful people were harsh and unrelenting. She was right, while those around her were gravely wrong. Yet, when I listen to Born and read her interviews, there is no anger, no recrimination in her voice, only grace. Brooksley Born never would have chosen this situation. She recounts waking in a cold sweat many a night. She has learned from her trial by fire and we can learn from her. Sometimes we set out to develop competencies, sometimes we don’t. Either way, if we do something enough, we are likely to get good at it. As poet Emily Dickinson wrote, Luck is not chance— It’s toil— Fortune’s expensive smile Is earned.

Take Brooksley Born, former chair of the Commodity Futures Trading Commission (CFTC), who waged an unsuccessful campaign to regulate the multitrillion-dollar derivatives market. Soon after the Clinton administration asked her to take the reins of the CFTC, a regulatory backwater, she became aware of the over-the-counter (OTC) derivatives market, a rapidly expanding and opaque market, which she attempted to regulate. According to a PBS Frontline special: "Her attempts to regulate derivatives ran into fierce resistance from then-Fed Chairman Alan Greenspan, then-Treasury Secretary Robert Rubin, and then-Deputy Treasury Secretary Larry Summers, who prevailed upon Congress to stop Born and limit future regulation." Put more directly by New York Times reporter Timothy O'Brien, "they ... shut her up and shut her down." Mind you, Born was no dummy. She was the first female president of the Stanford Law Review, the first woman to finish at the top of the class, and an expert in commodities and futures. But because a trio of people who were literally en-titled decided they knew what was best for the market, they dismissed her call for regulation, a dismissal that triggered the financial collapse of 2008. To be fair to Greenspan et al., their resistance was not surprising. According to psychologists Hillel Einhorn and Robin Hogarth, "we [as human beings] are prone to search only for confirming evidence, and ignore disconfirming evidence." In the case of Born, it was the '90s, the markets were doing well, and the country was prospering; it's easy to see why the powerful troika rejected her disconfirming views. Throw in the fact that the disconcerting evidence was coming from a "disconfirming" person (i.e., a woman), and they were even more likely to disregard the data. In the aftermath, Arthur Levitt, former chairman of the SEC, said, "If she just would have gotten to know us... maybe it would have gone a different way."12 Born quotes Michael Greenberg, the director of the CFTC under her, as saying, "They say you weren't a team player, but I never saw them issue you a uniform." We like ideas and people that fit into our world-view, but there is tremendous value in finding room for those that don't. According to Paul Carlile and Clayton Christensen, "It is only when an anomaly is identified—an outcome for which a theory can't account that an opportunity to improve theory occurs."13 One of the ways you'll know you are coming up against an anomaly is if you find yourself annoyed, defensive, even dismissive, of a person, or his idea.

The highest-risk investments include: Futures Commodities Limited partnerships Collectibles Rental real estate Penny stocks (stocks that cost less than $5 per share) Speculative stocks (such as stock in new companies) Foreign stocks from volatile nations “Junk” (or high-yield corporate) bonds Moderate-risk investments include: Growth stocks (companies that reinvest most of their profits to grow the business) Corporate bonds with lower (but still investment-grade) ratings Mutual funds or exchange-traded funds (ETFs) Real estate investment trusts (REITs) Blue chip stocks Limited-risk investments include: Top-rated investment-grade corporate and municipal bonds The lowest-risk investments include: Treasury bills and bonds FDIC-insured bank CDs (certificates of deposit) Money market funds Practicing

Arbitrage is a "risk-free" profit, but for most of us, it might as well be a mirage. Markets are quick to eliminate such opportunities.

Everyone is in favor of environmental sustainability...until they have to pay for it.

The Commodity Futures Modernization Act of 2000 -- buried in an 11,000-page budget bill and never debated -- was passed the night before Congress recessed for Christmas in December 2000. It exempted credit-default swaps from federal oversight and from state gambling laws.

In our case, we live in a National Security State that is committed to perpetual war, in a consumerism that reduces everything and everyone to a commodity. As a consequence, children become statistics for sales reports, military recruitment, prison population, and debt. It is, among us, all about subordinating the future of children to the success of market ideology wherein the money and power flow to the top of the pyramid while increasing numbers of children are left behind.

Before turning to Marx’s writings, we must note the radical divide that separates his position from orthodox Marxism. Marx never conceived of socialism or communism as state control of the economy. Nor did he ever endorse the notion of a single-party state that rules on behalf of the masses. His conception of the new society is thoroughly democratic, based on freely associated relations of production and in society as a whole. He was primarily concerned with freeing individuals from alienated and dehumanised social relations—not simply with increasing the productive forces so that developing societies can catch up with developed ones… [Marx] then turns to the future, writing: “Let us finally imagine, for a change, an association of free people, working with the means of production held in common” (Marx 1977: 171). This does not refer to a formal transfer of private property to collective or state entities. Transferring property deeds is a juridical relation, which does not end class domination. Marx refers to “free people” owning the means of production, which means they exert effective and not just nominal control over the labour process. And that is not possible unless the producers democratically control the labour process through their own self-activity. He then goes on to state that in this post-capitalist society, products are “directly objects of utility” and do not assume a value form. Exchange value and universalised commodity production come to an end. Producers decide how to make, distribute, and consume the total social product. One part is used to renew the means of production; the other “is consumed by members of the association as means of subsistence” (Marx 1977: 171–72). He invokes neither the market nor the state as the medium by which this is achieved. He instead envisions a planned distribution of labour time by individuals who are no longer subjected to socially necessary labour time. Abstract labour is abolished, since actual labour time—not socially necessary labour time—serves as a measure of social relations.

Drucker remarks that the concept of intellectual property, which is a juridical concept at the root of classical economics and the capitalist system, no longer has any meaning in an age when the circulating commodity is information and the market is the infosphere: We have to rethink the whole concept of intellectual property, which was focused on the printed word. Perhaps within a few decades, the distinction between electronic transmissions and the printed word will have disappeared. The only solution may be a universal licensing system. Where you basically become a subscriber, and where it’s taken for granted that everything that is published is reproduced. In other words, if you don’t want everybody to know, don’t talk about it. (Ibid).

Not the shattered or slashed works to which Alena thrilled, but those objects in the archive that both were and weren't different moved me: they had been redeemed, both in the sense that the fetish had been converted back into cash, the claim paid out, but also in the messianic sense of being saved from something, saved for something. An art commodity that had been exorcised (and survived the exorcism) of the fetishism of the market was to me a utopian readymade–an object for or from a future where there was some other regime of value than the tyranny of price.

Looting is a natural response to the unnatural and inhuman society of commodity abundance. It instantly undermines the commodity as such, and it also exposes what the commodity ultimately implies: the army, the police and the other specialized detachments of the state's monopoly of armed violence. What is a policeman? He is the active servant of the commodity, the man in complete submission to the commodity, whose job it is to ensure that a given product of human labor remains a commodity, with the magical property of having to be paid for, instead of becoming a mere refrigerator or rifle — a passive, inanimate object, subject to anyone who comes along to make use of it. In rejecting the humiliation of being subject to police, the blacks are at the same time rejecting the humiliation of being subject to commodities. The Watts youth, having no future in market terms, grasped another quality of the present, and that quality was so incontestable and irresistible that it drew in the whole population — women, children, and even sociologists who happened to be on the scene. Bobbi Hollon, a young black sociologist of the neighborhood, had this to say to the Herald Tribune in October: 'Before, people were ashamed to say they came from Watts. They'd mumble it. Now they say it with pride. Boys who used to go around with their shirts open to the waist, and who'd have cut you to pieces in half a second, showed up here every morning at seven o'clock to organize the distribution of food. Of course, it's no use pretending that food wasn't looted.... All that Christian blah has been used too long against blacks. These people could loot for ten years and they wouldn't get back half the money those stores have stolen from them over all these years.... Me, I'm only a little black girl.' Bobbi Hollon, who has sworn never to wash off the blood that splashed on her sandals during the rioting, adds: 'Now the whole world is watching Watts.

Financial options were systematically mispriced. The market often underestimated the likelihood of extreme moves in prices. The options market also tended to presuppose that the distant future would look more like the present than it usually did. Finally, the price of an option was a function of the volatility of the underlying stock or currency or commodity, and the options market tended to rely on the recent past to determine how volatile a stock or currency or commodity might be. When IBM stock was trading at $34 a share and had been hopping around madly for the past year, an option to buy it for $35 a share anytime soon was seldom underpriced. When gold had been trading around $650 an ounce for the past two years, an option to buy it for $2,000 an ounce anytime during the next ten years might well be badly underpriced. The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn’t use it.

In the bad old days, when we spent most of our time, you know, trying not to die, pleasure was limited and practical. Nowadays it’s a commodity, marketed as a substitute for happiness, and it’s on demand.

Munk Szondi used his unique knowledge of Levantine commodities to make money. According to the rules of the game, anything of value could be used in the betting. Thus when a pile of Maria Theresa crowns and chits representing Egyptian dried fish futures were on the table, Szondi would overplay his hand simply to get the fish. For Szondi invariably knew that Persian dinars were due to weaken in the next few days in relation to dried fish, and that a handsome profit would be his if he discounted the Maria Theresa crowns in Damascus, doubled the value of his fish futures by buying dinars on the margin in Beirut, sold a quarter and a third of each in Baghdad as a hedge against customs interference on the Persian border, and then saw to it that his courier with the fish futures arrived in Isfahan on Friday, a market day, when the fish futures would be most in demand.

The new GST: A halfway house In spite of all the favourable features of the GST, it introduces the anomaly of having an origin-based tax on interstate trade he proposed GST would be a single levy. 1141 words From a roadblock during the UPA regime, the incessant efforts of the BJP government have finally paved way for the introduction of the goods and services tax (GST). This would, no doubt, be a major reform in the existing indirect tax system of the country. With a view to introducing the GST, Union finance minister Arun Jaitley has introduced the Constitution (122nd Amendment) Bill 2014 in Parliament. The new tax would be implemented from April 1, 2016. Both the government and the taxpayers will have enough time to understand the implications of the new tax and its administrative nuances. Unlike the 119th Amendment Bill, which lapsed with the dissolution of the previous Lok Sabha, the new Bill will hopefully see the light of the day as it takes into account the objections of the state governments regarding buoyancy of the tax and the autonomy of the states. It proposes setting up of the GST Council, which will be a joint forum of the Centre and the states. This council would function under the chairmanship of the Union finance minister with all the state finance ministers as its members. It will make recommendations to the Union and the states on the taxes, cesses and surcharges levied by the Union, the states and the local bodies, which may be subsumed in the GST; the rates including floor rates with bands of goods and services tax; any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster etc. However, all the recommendations will have to be supported by not less than three-fourth of the weighted votes—the Centre having one-third votes and the states having two-third votes. Thus, no change can be implemented without the consent of both the Centre and the states. The proposed GST would be a single levy. It would aim at creating an integrated national market for goods and services by replacing the plethora of indirect taxes levied by the Centre and the states. While central taxes to be subsumed include central excise duty (CenVAT), additional excise duties, service tax, additional customs duty (CVD) and special additional duty of customs (SAD), the state taxes that fall in this category include VAT/sales tax, entertainment tax, octroi, entry tax, purchase tax and luxury tax. Therefore, all taxes on goods and services, except alcoholic liquor for human consumption, will be brought under the purview of the GST. Irrespective of whether we currently levy GST on these items or not, it is important to bring these items under the Constitution Amendment Bill because the exclusion of these items from the GST does not provide any flexibility to levy GST on these items in the future. Any change in the future would then require another Constitutional Amendment. From a futuristic approach, it is prudent not to confine the scope of the tax under the bindings of the Constitution. The Constitution should demarcate the broad areas of taxing powers as has been the case with sales tax and Union excise duty in the past. Currently, the rationale of exclusion of these commodities from the purview of the GST is solely based on revenue considerations. No other considerations of tax policy or tax administration have gone into excluding petroleum products from the purview of the GST. However, the long-term perspective of a rational tax policy for the GST shows that, at present, these taxes constitute more than half of the retail prices of motor fuel. In a scenario where motor fuel prices are deregulated, the taxation policy would have to be flexible and linked to the global crude oil prices to ensure that prices are held stable and less pressure exerted on the economy during the increasing price trends. The trend of taxation of motor fuel all over the world suggests that these items

In other words, sale of the commodity electricity (kilowatt-hours), formerly purchased only from your local utility, can now be purchased from any nonderegulated generator at whatever price the market has set. However, this power can only be delivered to you via the transmission grid and the lower-voltage local distribution system. Both of these remain fully regulated. Thus, even though the market sets the wholesale prices for power itself, the rates for delivering it over the transmission and distribution wires are set by federal and state regulators, respectively.

Why can’t I just subscribe to transportation the same way I subscribe to electricity and internet access? But wait, you might say. Uber isn’t a subscription service—there are no monthly fees. I disagree. It sure looks and feels like a digital subscription service to me. Uber has your ID and all your payment particulars, and it employs usage-based pricing so that you pay for only what you use. It knows your usage history (your home, your work, your common destinations) and uses that information to customize its service for you. And thanks to its partnership with Spotify, it even knows your favorite music. Oh, and guess what? Uber does in fact offer monthly subscriptions. Right now Uber is testing a flat-rate subscription service in several cities. Users can pay a monthly fee in exchange for bundles of reduced-rate trips with no surge pricing. In other words, Uber will cut you a deal on rides in exchange for steady business. The company may take a short-term profitability hit, but the goal is to gain long-term customer loyalty in a very young and turbulent market—and this customer loyalty is becoming more and more important as ridesharing becomes a commodity.

Arrow’s idea of a “complete market” was based on his sense of the value of human life. “The basic element in my view of the good society,” he wrote, “is the centrality of others. . . . These principles imply a general commitment to freedom. . . . Improving economic status and opportunity . . . is a basic component of increasing freedom.”19 But the fear of loss sometimes constrains our choices. That is why Arrow applauds insurance and risk-sharing devices like commodity futures contracts and public markets for stocks and bonds. Such facilities encourage investors to hold diversified portfolios instead of putting all their eggs in one basket. Arrow warns, however, that a society in which no one fears the consequences of risk-taking may provide fertile ground for antisocial behavior. For example, the availability of deposit insurance to the depositors of savings and loan associations in the 1980s gave the owners a chance to win big if things went right and to lose little if things went wrong. When things finally went wrong, the taxpayers had to pay. Wherever insurance can be had, moral hazard—the temptation to cheat—will be present.a