Garbanzo Toons

Greedy Price Gougers?

Oil prices go up because of years environmental hysteria have us too paralyzed with fear to build refineries, dig for domestic oil, or build nuclear power plants. Our 21st century economy is in the hands of demented 7th century religious imperialist thugs, and our leaders are too afraid to loosen that grip. Rather than demonize the barbarians or environmentalists that hold our economy hostage, Congress and other ignorant dopes attack the oil industry because their profits are too high.

The Detroit Free Press was always on board, giving space to any idiot who was willing to attack the oil companies. Just as they've always been sympathetic to the Israel bashers, anyone targeting big oil was welcome company. Now our food prices are set to rise almost as high as our gasoline prices. Are we victims of price gouging from farmers or our local grocery stores? Heavens no.

Get ready to pay $4.50 a gallon this summer -- for milk.

Gasoline prices over $3 a gallon have grabbed consumers' attention, but dairy products and other corn-dependent foods are expected to rise at an even faster rate.

This is happening because of an explosion in the production of ethanol, a gasoline additive touted by the president, automakers and farmers as a way to reduce America's dependence on foreign oil.

Up to 20% of the nation's corn crop -- 18% in Michigan -- is now being channeled to ethanol production. That increased demand means the price of corn used to feed cattle and pigs and to make cereals and sweeteners is going up -- 61% between September and May.

Together with the rising costs of wheat and other commodities, corn demand is pushing overall food prices up 4% this year, compared with 2% a year ago, and driving up the costs of breakfast foods -- eggs, bacon, cereal, milk and potatoes -- as much as 10%, according to the U.S. Bureau of Labor Statistics.

Chris Galen, a spokesman for the Arlington, Va.-based National Milk Producers Federation, predicts that the price of a gallon of reduced (2%) fat milk in metro Detroit, which started the year at $2.97 and is now around $3.08, could spike another $1.50 a gallon by the fall.

They expect us to buy some wacky "supply and demand" explanation. Why don't they give the oil companies the same slack? Oh yeah. Oil isn't as environmentally correct as ethanol; except ethanol will cause an increase in pesticide use and a decrease in the natural landscape as more land has to be cleared for corn, not to mention using up more water from underground aquifers. From what I've read, ethanol is a losing proposition all the way around.

Even worse,

But in the past five years, four ethanol refineries have been built in Michigan, with another seven in construction or being proposed. The state has created 20 agriculture renaissance zones, which offer tax incentives for companies to build ethanol and other renewable energy facilities.

Michigan's automakers also have joined the push.

General Motors Corp., Ford Motor Co. and the Chrysler Group have been touting the environmental virtues of flexible fuel vehicles that can run on an 85% ethanol fuel blend called E85. The automakers get credit for making such vehicles under the government's current fuel-economy standards. Ethanol burns cleaner than gasoline and reduces auto emissions, although it produces less energy and reduces gas mileage.

It's not bad enough that Michigan's economy is in the toilet due to the decline of the American auto industry, now we in Michigan are pinning our hopes to a bigger loser. I understand Congress going for ethanol. They are buying votes from environmentalists and corn producing states. Why, in so many industries, though, are people who should know better working against their better interests?

Labels: environment, ethanol, Michigan

posted by Harry @ 8:13 PM