Friday, June 02, 2006

More ethanol insanity

Ethanol's national average market price has made
gasoline prices seem stable by comparison,
catapulting from about $1.20 a gallon in early
2005, to $1.80 or so by September 2005, to $2.75
a gallon this Spring. Now, it is just about at
the price of regular gasoline—and that is after a
Federal subsidy of 51 cents on every gallon,
additional state subsidies and tax breaks, and
some local subsidies. As the price has soared, 35
new ethanol plants have leapt up. Fermentation
ethanol production has zoomed from 2.7 billion
gallons in 2003 to almost 4.5 billion gallons
annually now, and corn for ethanol now exceeds
corn for export, by volume. The phenomenon is an
ethanol investment bubble, adding at least
several more "tulips" to the global commodities-
markets fury of the past 18 months.

"Tulips" here refer to the Tulip Mania.

The only place the writers of the ethanol article
go wrong is their advocacy of nuclear power.

Remember Chernobyl?

Who would want to support a power source that only
the bummint would insure, remembering that
everything it touches turns to best?

Best to keep those matches out of the hands of
the earthmonkey.

Take a look at all the monkeys humpin' that

Thanks to L. Reichard White