Flooding, Ethanol and You
The push for ethanol is coming partly from the ag community and partly from those who think of it as “carbon light” compare the the “evil” oil based products. And the high prices, driving mostly by speculation and an artificially pinched supply, is being used as a vehicle to push the ethanol alternative as a more “green”, “earth friendly” or “renewable”.
But lets face facts. There are a couple billion barrels of oil just waiting to be pumped, that’s enough to run the US of A for several decades at least. And the only way that supply is pinched is through Congress.
Now take Ethanol. Not only does it detract from the food supply but it introduces and even higher and more frequent risk of supply crunches as witnessed by the flooding in the American Midwest which is not only threatening this seasons supply but has driven corn and soybean futures into record territory.
So if you think gasoline prices are inflationary and unstable just you wait until we’ve an ethanol based energy economy…. you ain’t seen nothing yet, folks.