Oil prices have attained a level higher than last year at the same period, even though there has been no major political event to drive them up, or a natural disaster of the magnitude of Hurricane Katrina.
We have seen corn prices go up with the recent mass introduction of ethanol crops in the US, subsidized heavily by the federal government, which has led to increase in corn-based product prices in, of all places, Mexico, increasing food insecurity -- because we can't use the words 'famine' or 'food scarcity' anymore it seems -- in those areas where Mexican bidders cannot even begin to compete with buyers who want to trade corn for ethanol production.
But the desperation of the American people for putting fuel into the only means of transportation they know of, private cars, has reached a new level. We have seen GM trying to sell "hybrid cars" that have the same gas mileage as 1980s Japanese compacts and Ford trying to woo customers with red tag offers, but now, this is really starting to sound eerie: ConocoPhilips striking a deal with meat producing giant Tyson on using animal fat to produce 'low-sulfur' diesel.
Wow. Two of the most subsidized industries teaming up to transform mostly toxic by-products into diesel fuel. If that project was directed at developing diesel to increase national reserves, power the dwindling rail transportation system or just provide electricity to key institutions such as schools or public libraries, it would be fine by me. But my guess is that it will end up mostly into Joe Six-pack's SUV tank. Even if it kills him.
Ah, the imperfection of free markets. Showing us everyday how libertarianism is wrong and the American corporate world is delusional...
Posted by phonono at avril 16, 2007 10:21 PM