Government Meddling Raises Corn, Meat & Gas PricesSubmitted by McWilly on Thu, 08/16/2012 - 15:39
President Obama is once again trying to use smoke and mirrors to hide another misguided attempt that the government forced down our collective throats in an attempt to be more “environmentally friendly” and to escape our dependence on foreign oil: the much hated ethanol mandate.
"The EPA-enforced Renewable Fuel Standard requires about 15 billion gallons of ethanol, most of which is derived from corn, to be blended into gasoline this year. About 40% of the U.S. corn crop will go into ethanol production this year, the U.S. Department of Agriculture has said."
This mandate, combined with the current drought is having massive repercussions. In a speech in rural Iowa, Obama promised that the government would spend our tax money to buy up livestock that are being slaughtered due to the drought effecting corn crops. Most livestock depends on corn as its main source of food, and as corn shortages rise due to the drought, farmers are forced to slaughter animals for sale when they can’t afford the corn to feed them. The government will spend $100 million on pork, $50 million on chicken and $20 million on lamb and catfish. Of course, the farmers wouldn’t need this help if the government wasn’t artificially inflating the cost and scarcity of corn through it’s forced use of ethanol, a fuel that has already been debunked both economically (1) (2) and ecologically.
So our government, in yet another shortsighted move is pushing a fuel that has no hope of helping our domestic fuel situation, and is pushing up the costs of corn, which then translates into higher meat and gas prices, as every single gallon of gasoline is required by law to include 15% ethanol.
And you won't believe what Obama thinks about how this effects supply/demand...