Tuesday, October 30, 2012

NATIONAL: The Extreme Folly of Corn Ethanol

I've been wanting to write on this subject for a LONG time! Ethanol is such a losing proposition in so many different ways that I don't know where to start...

This is all I have time for now, but there will be more to come. Thanks for reading.

BASIC ETHANOL STATISTICS: I'm just going to collect and throw out some basic ethanol statistics that I can refine over time.
  • The US uses 40% of its national corn crop to create ethanol.
  • The EPA mandates that 13,800,000,000 (that's right: 13.8 Billion) gallons of ethanol be mixed int our gasoline supply in 2013.
  • Ethanol production is HEAVILY subsidized by taxpayers, and will have to be for decades (or perhaps forever) because it just does not pencil out as a fuel additive that makes economic sense on its own.
CONTRIBUTES TO WORLD HUNGER: For a variety of reasons (worldwide drought among them), hunger epidemics are sweeping the world today - primarily in Africa, the Middle East and South America including Mexico and Central America. This 3rd world hunger is made worse by the run up in the price of corn, a world food staple, by the US conversion of this food source to a gasoline additive. President Obama has stated that he believes that the US, as the wealthiest nation on the planet, has an obligation to fight world hunger. Unfortunately, the drive to convert food to gasoline (in the form of ethanol) has made that fight that much more difficult.

INCREASES FOOD STAPLE PRICES IN MEXICO: Mexico is perhaps the hardest hit by this corn-to-ethanol policy in the United States. With corn tortillas making up the bulk of diet calories to the Mexican poor, ethanol policies in the US are believed to have driven the price of corn tortillas up by a factor of 3 in Mexico. Where is the compassion for our poor, hungry neighbors to the south? When it comes to the supposed "solution" of ethanol to the problem of global warming, the policy is basically "to h*ll with the poor"- or so it would seem from where I am standing.

INCREASE GLOBAL WARMING: Scientific American magazine says in their 2009 study that "Ethanol will NOT reduce Green House Gasses". Ethanol made from corn produces about 50% more green house gasses than fossil fuels, as is stated in  this study.

ETHANOL TRANSPORT ISSUES: Unlike fossil fuel-based gasoline, ethanol cannot be transported by pipeline, and must instead be hauled our highways in trucks. That is because, unlike fossil fuel-based gasoline, ethanol absorbs water that accumulates in pipelines and is dissolved in the ehtanol. fossil fuel-based gasoline, on the other hand, does NOT mix with water (think "oil and water don't mix", or that boat fuel filters remove water by letting it settle to the bottom of the fuel filter (because water is heaver than fossil fuel-based gasoline). Also, ethanol causes pipeline corrosion issues that fossil-fuel based gasoline does not - read about it here.  

I found an article at The Economist that says it best:
Corn-based ethanol is quite simply the largest scam ever perpetrated on U.S. society. It yields AT BEST a break-even in energy, an energy-returned-on-energy-invested of zero. It also creates more emissions than it eliminates for two salient reasons seldom mentioned.
The first is that adding ethanol to gasoline yields a more volatile mixture than the base RBOB. That has required the establishment of separate manufacturing lines to produce chemicals which re-lower volatility to its original level. Secondly, ethanol is hygroscopic and then corrosive. It cannot be transported via pipeline, the most economically and environmentally efficient means of transportation. Hence, ethanol is trucked around the country by soot-emitting 18-wheelers. An entirely new distribution infrastructure has been created to mix it with commodity gasoline (RBOB) at the local wholesale level. In addition, it uses enormous volumes of water, estimated at 82 gallons per gallon of ethanol by the Argonne National Laboratory http://www.smartplanet.com/blog/energy-futurist/the-energy-water-nexus-2. That's about one trillion gallons per year!
The corn-based ethanol rules in this country have benefited no one outside of its own value chain. There's no word for it other than egregious.

Saturday, October 27, 2012

PHOTOS: Just for Fun!

A few photos from a recent backpacking trip that I liked. Click to enlarge:









Thursday, October 18, 2012

NATIONAL: Buy New Ford Vehicles (not Chrysler or GM)

I will not buy NEW Chrysler or GM ("Government Motors") vehicle products, because unlike Ford, they got government bailouts in their government-sponsored illegal bankruptcies.

Early in Obama's term, around 2009, Chrysler and GM went through government-assisted bankruptcies. There were 2 problems with this:
1) Secured creditors got illegally stiffed to the tune of BILLIONS of dollars, and
2) Democrat-supported constituencies (primarily unions) got paid off at the expense of those legally entitled to bankruptcy funds.

If the government let GM and Chrysler go through a legal (non-government sponsored) bankruptcy, private investors would have competed for the assets of the car companies, and started anew - this is how bankruptcy is supposed to work, or so I am told. No, I am NOT a bankruptcy expert, so please correct me if you are (and I need correcting).

Now I read this morning that the state of Indiana was hosed by our federal government to the tune of $42.5 million, when their secured credit was denied by the Obama administration, and instead went to UNsecured creditors at the United Auto Workers union.

Thursday, October 11, 2012

NATIONAL: Obama Campaign Desperation - Liar! Liar! Liar!

Obama got his clock cleaned by Romney in the first debate on October 3, 2012, plunging his campaign into an abyss of desperation. Obama directed his officials and attack dogs, including the media, to bombard the Romney camp with the "Liar" label. Obama robots are attaching the word "Liar" and "Romney" everywhere they can. But its not working.

Calling someone a liar is a serious charge, which is designed to be a loaded word suggesting bad faith or total, cynical falsity. The Romney camp has ample opportunity to do the same with Obama, but has chosen not to do so [UPDATE 10/18/2012: it would now appear that Romney's pundits and supporters are now using the "Liar Card" in the situation with our dead Ambassador to Libya - is turnabout fair play?]. For instance, every time he talks, Obama says he wants to increase taxes on the "Millionaires and Billionaires", yet his tax increase proposal starts with individuals making $200,000 a year; should the Romney team be similarly calling Obama a liar? The statement clearly is a lie. What? You mean Romney's camp isn't using the Obama "liar" tactic? Why not? Um, maybe because Romney comes from a political generation that knows how to play rough, but knows the limits of going too low at the presidential level. Obama plays by "Chicago Politics" rules, and its unfortunate for the American public to be exposed to these playground level tactics.

Traditionally, in politics, there are all kinds of ways to suggest that an opponent is not telling the truth, such as this weeks Obama TV ad asking "How Can We Trust Mitt Romney?" No objection to that approach. To have top officials from the Obama campaign yelling "Romney is a liar" at every opportunity screams of desperation and a "get elected at any cost" mentaility. Sad.

A source none other than the liberal Huffington Post picked up on this Liar tactic quickly after the debate. Just try googling "Romney" and "Liar" and see how many hits you get from the upper echelons of the Obama Campaign and Obama Staff.

For a take on the conservative angle, you can read Bill Bennett defending Romney in the first debate as NOT being a liar.