U S A is #1

Folks,

Ethanol is a "biofuel," the bright idea being we can grow fuel and burn it in
our cars. Ethanol is
essentially using corn mash to make white light'ning...

Here is an article that supports an argument I make, that is USA exports
generally hurt the USA
economy.

http://tinyurl.com/ccqre

In this article, USA is expanding ethanol production, which benefits big biz
(although the article is
about little biz getting in on it).

Problem A: It takes more energy to create ethanol than the energy we get from
the process, a
ratio of about 1.29. Therefore it must be subsidized. Of course, due to huge
subsidies, there is
massive counterattacks to the studies that make this inefficiency claim. (CBO
says it costs
taxpayers $30 to yield Archer Daniels Midland $1 in profit on ethanol). OK, so
you don't accept
the anti-ethanol argument...then

Problem B: there is a 50 cent a gallon tax on ethanol imports from Brazil. The
Brazilians can
produce ethanol cheaper cuz the biomatter grows easier in Brazil ... think
jungle... (and the
Brazilians use sugar cane instead of corn... you see what corn does to a kid,
and what sugar does
to a kid... which do you want in your car?)

So even if the subsidized scientists are right in arguing ethanol from corn is
good, why not buy it
cheap from Brazil? But also, if corn-to-ethanol is efficient, then why is it
subsidized? Why make it
a law forcing people to use it if it is a good idea?

Anyway, follow the money... since foreignors spot us being silly economically,
they buy up ethanol
from us, which causes the price of corn to go up, and price of ethanol too. And
more land is put
to agriculture of this sort, depleting that resource.

USA exports are growing, but largely in areas where the item is subsidized.
Thus, we are heading
where China was, and India was, and Russia is... that is exporting commodities
which transfer
money to the few and breaks the many.

The article ends with a bizarre claim, that in the competition with Big Ag,
small farmers have
always done well! In 1972 Nixon's Ag Sec Earl Butz announced to USA farmers,
"get big or get
out." It is gov't policy to wreck the family farm, and it has worked out quite
well. Small farmers
survive selling what big biz does not sell, not by competing against big
subsidized biz.

We've seen the end-game many times... small farmers are offered an opportunity
to get into a big
biz in competition with the big boys, and earn some real money... the farmers
take the bait, invest
heavily, ethanol prices drop, the small guys get busted, the big guys take their
farms and buy their
ethanol plants at 10 cents on the dollar.

And Willie Nelson gives a benefit concert.

Solution: End the subsidies (and cut taxes concomitantly), end the laws
requiring ethanol use,
drop the taxes on Brazilian ethanol. Then see what happens. There would be
enough money to
get mag-lev transport going.

John

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