Thursday, December 10, 2009

corn laws 2010

CORN LAWS 2010
www.americanenergycrisis.blogspot.com , the go-to place for Peak Oil and economics engaging in a freak mating ritual and popping out a mutant spawn of the opening salvo of PODA in which the prepared individuals are lucky to be the last ones in the stew pot, has the latest figures in on oil import declines. Over 11% for the last year. Put that in your crack pipe and take a huge huff you big ear Muslim half-breed Kenyan citizen “green shoots” Nobel “Peace In The War Zone” Prize, carbon emitting Copenhagen visiting, Whore For Chicago Olympics, Read My Lips No New Taxes As I Jack Up Tobacco Prices ( it’s not a tax, it’s a fee ) mother humper. Baby Bush might have been an incompetent illiterate booze hound aspiring jack booted thug, but at least people weren’t stupid enough to look at his pretty face and believe the crap he was spewing ( outside of a few like “Republicans buy Viagra from my sponsors so can do no wrong” Limbaugh ). Anyway, back on track. On aforementioned site it was mentioned that ethanol was a program sure to be ramped up in the future and soon there would be no more corn exports from the US.
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Canadian tar sans and ethanol both are usually net energy losers. But the reason they are implemented and will be ramped up in the future is that they are the only alternate energy that uses our available infrastructure. We burn the regular oil and take the natural gas and use it as a heat source to “melt down” tar sands into an oil substitute. We take natural gas and turn it into an artificial fertilizer for corn and a electricity generator to pump water. You can spout all the tree hugging Birkenstock wearing Volvo driving “Can’t We All Just Get Along?” crap you want, the ideal energy future will never get here. In case you missed a few bridges collapsing during rush hour or a few inconvenient brown outs, our infrastructure built fifty to a hundred years ago is failing. All the shovel ready tax waste is simply to enrich a few contractors widening roads, exactly what we don’t need. We can’t maintain our existing infrastructure so there is absolutely no way a new one is going to be built. No natural gas vehicles. No solar electricity to power hybrids. No hydrogen. What we have is what we will use. And what we have is a liquid gasoline system. Ethanol and tar sand juice is what works with our existing infrastructure. The jag offs that stay rich on the current system, the ones that need you to stay in debt from age 18 to 81, the ones that can only be enriched if constant growth continues, they will continue ethanol and tar sands. Regardless if it is a net energy loss or not. Regardless of the environmental costs ( can anyone say, Easter Island statues? Mayan temples? Roman bread and circuses? ).
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The title of the article is just my extreme paranoia shining through. I don’t know if next year we will see a law banning corn exports as we are already seeing certain countries banning rice exports so as to feed their population first. Or if instead of a ban we will just see a market distorted government subsidy on corn purchases. But we will indeed see more and more corn going to fuel as our petroleum imports dry up faster and faster. Gasoline prices will go up as a result. Your vehicle will incur increased maintenance as a result ( already evident sometimes with ten percent blend ). Wheat and soybean prices will skyrocket, being the coal mine canary for meat and dairy, etc. Mexico will collapse as famine and revolt join the now failed Narco State form of governance. Japan will stop buying our debt. And whatever other negatives which result from our most important export being stopped. Money wise, cheap grain might not be important now. It soon will be as the weather events we’ve just seen continue to effect crop output. In the end, it will be about little more than heat and food. By then, reruns of So You Think You Can Rap Like An American Idol will not generate much in the way of corporate profits or taxable income.
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It’s easy to point to policy that led to the collapse after the fact. Is Corn For Fuel replacing Corn For Oil And Empire a collapse indicator? Who knows. It might be huge, or just another nail in the coffin. But it will lead to huge food price increases ( on top of that from inflation ) if nothing else. Joe Yuppie living in a thirty year mortgage driving a Government Motors SUV bought with a seven year note commuting from the burbs keeps the monied interests alive and well. Your ability to buy groceries is irrelevant.
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9 comments:

snowball_in_hell said...

The 1985 Honda CRX got 55 miles to the gallon on the highway. For real.

Why, a 1/4 century, later do entry level cars only get in the mid-30s?

All this hybrid/solar/ethanol "savings" could be eclipsed by reintroducing vehicles from 1980s.

How is that possible?

Michael said...

Checkout the cars they drive in europe, which are mostly Fords and GM. 40-50 MPG on the freeway and running on biodiesel.

Jim, the reduction of oil imports is from the demand side, not the supply side. Oil companies are closing refineries do to over supply.

"Crude oil inventories at the Cushing, Okla., storage hub, which is the delivery point for the Nymex crude futures contract, are 46.5% above a year ago and near record highs..."
http://online.wsj.com/article/BT-CO-20091210-713569.html

Our current hard times does have some up sides to it, one being people are getting used to getting by on less oil.

If we don't make some huge changes and make them quickly were up shit creek around 2013 when Mexico's fields start tapping out.

Freedom Strikes Back said...

michael, I'm curious, is that 40-50 mpg or 40-50kpg? I do know that they don't drive fords and gm majority wise over there. If in germany, they drive german cars (when I visited Germany recently, the taxi was a mercedes, and thats a norm). Britian, Britian cars. I lived in Itay for 5 years and they drive fiats (as well as the rest of Europe, as far as cheap cars go).

Michael said...

FSB

LOL... I forgot about the big three's (2!) recent troubles for a minute...

I should have written more. GM used to own Vauxhall and a bunch of other European car companies. Ford, I think, still owns Volvo's car division and used to own Jaguar and Land Rover (and other stuff that escapes me at the moment), but it looks like they've been sold. Ford also owned a big chunk of Austin Martin, but, who the hell knows who owns who now. So, that's what I meant by Europeans driving cars from Ford and GM.

The Ford KA is one of the more popular cars in England and gets 56MPG highway.

http://www.greencar.com/articles/new-ford-ka-tdci-gets-56-mpg.php

panhandletex said...

The reason the MPG so much lower is the EPA standands are higher and higher.

Anonymous said...

I had a 1992 Geo XFI that got 45-50 mpg. I have often wondered why, anymore, I can't buy a cheap car that can get that kind of mileage. Panhandle sounds right.

The EPA is not thinking big enough if we waste more fuel, which causes more pollution to produce, than we save by pollution controls.

The so called "Smart" car can't carry 4 passengers like the old Geo XFI. The hybrids are way out of my price range, and the manufacturing pollution from making new batteries seem to not be accounted for.

oldsubotai said...
This comment has been removed by the author.
James m Dakin said...

The Hills Have Eyes! Saw the first one, not bad for its genre. But I like the visual of #3 being in the high desert. Without the radiation mutation of course. Thanks for the happy thoughts!

fallout11 said...

Solid post today James, well said.

Snowball in Hell, today's Hondas weight twice as much as the 1985 CRX, hence have commensurate fuel economy. If we were all to go back to driving Suzuki Swifts/Geo Metro's, then yes fuel economy could be doubled.
Why is something that so simple? Because technowiz self-masturbation (i.e. hybrid/solar/ethanol) is an exercise in diminishing marginal returns. The end result is that we ourselves must adapt and change our behavior. I.e. be satisfied with a 1985 Honda CRX.