Energy Prospectus

Washington is insane if they do not eliminate the mandates for more corn based ethanol in our gasoline. It has already added 10 cents / gallon to the price of gasoline. The price of food is likely to go up 20% to 30% by year-end if they don't. - Dan
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The surge in grain prices amid the worst drought in the U.S. in more than half a century, has led to livestock farmers demanding the Obama administration reduce or temporarily cancel a federal mandate, which requires part of the corn crop be set aside to produce ethanol for blending into cleaner-burning gasoline.

The livestock lobby argues such a waiver will free up more supply and help ease record prices for corn, a key ingredient for animal feed. This year gasoline refiners will use some 13.2 billion gallons of ethanol, which will consume some 40 percent of the corn crop.

The debate is resurrecting painful memories of the food crisis of 2008 when farmers diverted corn crops from food production into the lucrative biofuel market. That contributed to a jump in prices and sparked food riots in Haiti, Bangladesh, Egypt and Mexico.

Full story: http://finance.yahoo.com/news/surging-c ... 32514.html

This makes me ill:
Monday, August 13: President Barack Obama announced emergency measures Monday to ease the impact of the worst drought in half a century, but stopped short of waiving the government’s requirement that a large portion of the now-shriveled corn crop be diverted to make ethanol.

Obama announced that the Department of Agriculture will buy up to $170 million of pork, lamb, chicken and catfish to help support farmers suffering from the drought. The food purchases will go toward "food nutrition assistance" programs, like food banks. [We just keep moving closer and closer to the cliff. All with good intentions.]
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All these SOBs care about is getting re-elected. The United Nations is warning that millions may starve this coming winter (note: After the election) because of food shortages. Food prices went up 6% in June and may be up by 30% to 40% by year-end. Some 3rd world countries will get less than half the imports they need to survive. For many of us another couple hundred dollars a month of food is no big deal. For billions it is a very big deal.
Washington makes me sick: Burning up over half our corn crop to make ethanol is incredibly insane, but so is most of what Washington does these days.