BF2S Forums U.S. to see...food rationing.

KEN-JENNINGS wrote:

S.Lythberg wrote:

lol...ethanol


These guys haven't done their research...

The energy gains from corn ethanol are negligible at best, and there isn't enough corn in the world to meet our demand.

They should put that money into algae based biodiesel, it's far more promising.

I don't think it is politicians not following research - I think it's politicians and industry figuring out a way to justify/continue ridiculous farming subsidies like the Farm Bill.

it's buying votes from the "ignorant, gimme a quick fix" crowd.

mikkel wrote:

Phrozenbot wrote:

It was a failed conception from the start. Maybe we should have let the market decide the best fuel alternative?

Oh well, let's export our inflation and make food more expensive around the globe shall we?

When the US sneezes, the rest of the world catches a cold. There's little you can do right now to stop that.

That's not as true anymore with normal cycles in the market. This is a monetary phenomenon.

I was making an extremely vague point about one of the roles central banks have, and that is to create "acceptable" foreign exchange rates. If China's currency starts to appreciate against the dollar, they will debase it. It's part of globalization to keep trade the way it is, and central banks are creating their own money just to buy dollars and hold them, which in turn creates inflation in their currencies, and the purpose is to lessen the loss of declining dollar. I like to use the term "race to the bottom", but a lot of people are becoming impatient with a collapsing dollar.

So essentially, we export our inflation because a cartel (basically) of central banks want to keep the US dollar strong. But their frustrating will soon turn to panic, as exiting the dollar will be a flight to safety.

Last edited by Phrozenbot (2008-04-22 01:28:25)