Grain prices rising and food costs are increasing

[tcmgpt13]

In case some have not read this in the papers or seen articles on the internet I though to share the news that grain prices are steadily and sharply rising. Some areas of the world have shortages and are starting to limit exports of grains, particularly rice and wheat. So far, according to US rice growers, there is plenty of rice on hand in the US, but this did not prevent many restaurants in the US from stockpiling rice which has led to the larger discount clubs limiting the quantity of rice which may be purchased at one time. If there is a world shortage, then prices may rise in the US even if the local supply is plentiful. Other stories have related that farmers in the midwest are having a colder and wetter than normal spring. If crops cannot be planted in a timely fashion during May there may be lower harvests of grain in the US as well. The European Union is planning to increase farm land dedicated to growing grains. Here are a few articles:

http://www.thestar.com/article/413769

http://atlanticfreepress.com/content/view/3773/32/

EU plans increasing grain production:

http://news.bbc.co.uk/1/hi/world/europe/7014999.stm

http://www.stratfor.com/analysis/kaz...grain_shortage

http://www.nytimes.com/2008/04/18/wo...ood.html?fta=y

http://www.reuters.com/article/marke...23679120080423

It is all so crazy and the use of mostly corn and other grains for fuel seems irrational.

[2manyfibers]

Hey TCM - you're certainly right about how irrational ethanol is and the whole thing is a hoax by our own politicians and lobbyists for ethanol producers. Like everything in this country today, it boils down to the pure corruption and stupidity of our government. Here's a link to an article that points out just how stupid and corrupt with some excerpts from the column below:

http://www.townhall.com/columnists/W...d_ethanol_hoax

Ethanol is 20 to 30 percent less efficient than gasoline, making it more expensive per highway mile. It takes 450 pounds of corn to produce the ethanol to fill one SUV tank. That's enough corn to feed one person for a year. Plus, it takes more than one gallon of fossil fuel -- oil and natural gas -- to produce one gallon of ethanol. After all, corn must be grown, fertilized, harvested and trucked to ethanol producers -- all of which are fuel-using activities. And, it takes 1,700 gallons of water to produce one gallon of ethanol. On top of all this, if our total annual corn output were put to ethanol production, it would reduce gasoline consumption by 10 or 12 percent.

Ethanol is so costly that it wouldn't make it in a free market. That's why Congress has enacted major ethanol subsidies, about $1.05 to $1.38 a gallon, which is no less than a tax on consumers. In fact, there's a double tax -- one in the form of ethanol subsidies and another in the form of handouts to corn farmers to the tune of $9.5 billion in 2005 alone.

Ethanol production has driven up the prices of corn-fed livestock, such as beef, chicken and dairy products, and products made from corn, such as cereals. As a result of higher demand for corn, other grain prices, such as soybean and wheat, have risen dramatically.

It's easy to understand how the public, looking for cheaper gasoline, can be taken in by the call for increased ethanol usage. But politicians, corn farmers and ethanol producers know they are running a cruel hoax on the American consumer. They are in it for the money. The top leader in the ethanol hoax is Archer Daniels Midland (ADM), the country's largest producer of ethanol. Ethanol producers and the farm lobby have pressured farm state congressmen into believing that it would be political suicide if they didn't support subsidized ethanol production. That's the stick. Campaign contributions play the role of the carrot.

It pays the ethanol lobby to organize and collect money to grease the palms of politicians willing to do their bidding because there's a large benefit for them -- higher wages and profits.

[tcmgpt13]

Yes, 2manyfibers, I agree with you about all the shenanigans that go on in this country, many of them disguised as going green for the good of the country (always add a little patriotism to sweeten the misery of the masses). And ethanol's double tax is not all we have to shoulder, not if one considers the major taxes assessed on oil companies and refineries so that Congress can look ever so good about not raising taxes at the pump--these government taxes are already extremely high BTW. This hidden tax is mostly the democrats increasing taxes in secret so the voting public will not blame them but the oil companies for increased costs at the pump (the oil companies are passing the tax on them to us, a practice of most companies). They already have plans to increase taxes in many areas if they win both houses in November. So if money is flying out of your pockets look for more of the same in hidden taxes and other more visible taxes if this current trend continues.

There definitely may be lot of shenanigans both in government and in ADM. Well, I hope they know starvation for many is not out of the question if ethanol becomes an alternate source for fuel. Major poverty in the US is not out of the question either if food and fuel prices continue to sky rocket. To add insult to injury we cannot even drink ethanol to drown our sorrows. Oh, and they will not allow Brazilian ethanol into our country either (made from sugar cane) as it is much cheaper than the ethanol we produce. But hey, making ethanol from grain is good for the farmers. To heck with the rest of us, there are far too many of us anyway.

From A Christmas Carol by Charles ****ens:

In Charles ****ens' A Christmas Carol Ebenezer Scrooge comments that those who will not go to Government proscribed charities should "die then, and decrease the surplus population."

``If these shadows remain unaltered by the Future, none other of my race,'' returned the Ghost, ``will find him here. What then? If he be like to die, he had better do it, and decrease the surplus population.''

Scrooge hung his head to hear his own words quoted by the Spirit, and was overcome with penitence and grief.

``Man,'' said the Ghost, ``if man you be in heart, not adamant, forbear that wicked cant until you have discovered What the surplus is, and Where it is. Will you decide what men shall live, what men shall die? It may be, that in the sight of Heaven, you are more worthless and less fit to live than millions like this poor man's child. Oh God! to hear the Insect on the leaf pronouncing on the too much life among his hungry brothers in the dust!''

http://suncomprehendingglass.blogspo...cked-cant.html