Thursday, March 20, 2008

Ethanol

The promise of ethanol is fading as the laws of supply and demand are starting to be felt.

Also the law of unintended consequences such as the rise in all food costs because farmers grow more corn which means less wheat, rye, soybean etc. are grown. This causes all grains to increase in price which increases the cost of animal food (chickens, turkeys, cattle, etc all eat corn).

The extra corn being grown is turned into fuel so it also isn't available for food stuff so the food available is shrinking and the cost of food through out the economy is increasing.

So ethanol is contributing to the inflation we are seeing. Is it worth it? That is a question we as a society need to answer.

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