High food prices may force aid rationing

Financial Times ^ | February 24 2008 22:02 | By Javier Blas in Washington and Gillian Tett in London

[DeaconBenjamin]

It’s not that food and everything else is more expensive; it’s that our dollars are getting smaller.

But the yen, and yuan, and euros, and pounds are substantially keeping pace (let alone the various pesos).

[MarkeyD]

ANWR, drilling of the east and west coasts, nuclear energy, clean coal and coal gasification would solve this problem.

There are plenty of solutions, just democrats blocking them at every twist and turn.

[17th Miss Regt]

Might be time for the UN to step in and force the US to drill ANWR...

Suggestion. Do not drill for petroleum in ANWR. The problem is the price of corn. The solution is to drill for corn oil in ANWR. A large corn oil strike will cause a drop in the price of corn oil. More supply and lower prices, too. The UN will surely get behind that one.

If we hit something other than corn oil when drilling, we may opportunistically exploit that resource, whatever it may be, as well.

[DeaconBenjamin]

Bill Calls for Energy Independence' on Back of Oil Drilling [in ANWAR and Gulf]

[MaxMax]

This years garden for me will be huge. I even planned CORN! lol

[Myrddin]

We might consider holding the most precious 1 square foot of land owned by the farmer under tighter reigns. That would be the land directly under the mailbox that receives a government check when crop production is short due to a drought, another check when excessive rain damages the crop and another check when the crop is so successful that price supports are necessary. That 1 square foot is mighty important.

[Balding_Eagle]

Up until a year or two ago it was under very tight reign,

The farmer was generally assured that as long as he produced enough crops to keep food cheap, he wouldn’t be driven out of business. Importantly, he also had to agree not to produce too much. As long as he did that, he would be sent enough money to struggle on until the next year.

The consumer benefited because they got abundant, cheap food. The farmer benefited, because he wasn’t driven out of business.

Ethanol has thrown a monkey wrench into that system. Right now the farmer doesn’t need that government money. As a result, he’s free to produce as much as he wants, and sell it for much more than the government controlled system paid.

You post was a litttle confusing, are you suggesting that we continue the cheap food system, or try to force the farmers to work under the new system (the one with ethonal) by eliminating the farm programs ?

[Myrddin]

Ethanol is only a "viable" option because the taxpayer is subsidizing it as well. I know because some of my former colleagues are standing up a new ethanol plant. They wouldn't even try if the government subsidies weren't part of the deal. I've been helping them by finding technology to boost the efficiency of the corn starch to sugar step.

[Balding_Eagle]

Ethanol is only a "viable" option because the taxpayer is subsidizing it as well.

That's true for oil as well. The subsidies for oil are (understandably) much higher.

Remember Gulf War I? The war fought for the free flow of oil? Imagine that the US military had not fought that war, or fought the war and sent the bill to the oil companies?

Sometimes the subsidies we complain about are not as out in the open as we might imagine.

[quant5]

Yeah but wheat grows like mad in cooler tempatures and we have plenty of it. Yummy wheat pasta and some butter is all you need to stay alive a long, long time.

[Myrddin]

In the case of oil, it takes a much longer time to develop the resources and build the refineries than the annual cycle of growing crops. The country runs on oil. Farming runs on oil (machines, pumping water, making fertilizer and pesticides, harvesting and delivery to market).

[Myrddin]

Yeah but wheat grows like mad in cooler tempatures and we have plenty of it. Yummy wheat pasta and some butter is all you need to stay alive a long, long time.

Speak for yourself. I'm gluten intolerant. I avoid wheat, barley and rye. It destroys my digestive tract and causes my sinuses to become congested.

[Balding_Eagle]

OK, everyone knows that, and agrees, so what?

Are you saying that that makes the oil subsidies OK?

BTW, it takes several, 4 to 10 crop cycles to bring an ethanol plant on-line, depending on the resistance of the enviro-nazis.

[Timeout]

This reminds me of the early 1990’s—local governments were all rushing to convert their buses and municipal vehicles to natural gas. (I heard this morning that they’re doing it again). At the same time, they were demanding all coal fired plants convert to natural gas burners. I.e., gas was “the thing”.

Fast forward a few years and, of course, natural gas prices were through the roof and California was having rolling blackouts.

Now they’re screwing up the corn market with their ethanol subsidies. Beware the politician meddling in commodity markets.

[RightWhale]

When the snow doesn’t melt in the summer across the corn belt, then there will be a problem.

[Myrddin]

I'm saying that "oil subsidies" in the form of protecting access to the only existing sources was justifiable. Our economy would have shutdown if we had not protected the sources. Since the government (RATS) insists on preventing private industry from developing domestic sources, we have little choice other than using the military to keep existing sources accessible.

[Myrddin]

Robert Felix points out that the only difference between "normal" and an "ice age" is that "year over year" an ice age yields a net increase in snow accumulation that doesn't melt off. He shows the glacier line across North America. I'm just south of that point. Seattle was north...as was much of the midwest.

As humans, we possess the ability to assess what happened and try to settle areas that are out of harm's way. Somehow, I don't think we are quite that bright.

[Balding_Eagle]

I'm saying that "oil subsidies" in the form of protecting access to the only existing sources was justifiable. Our economy would have shutdown if we had not protected the sources. Since the government (RATS) insists on preventing private industry from developing domestic sources, we have little choice other than using the military to keep existing sources accessible.

I whole heartily agree with you.

However, no matter which way you want to describe it, it comes down to the US Government digging into it's pocket to help the oil companies.

[Oberon]

But the yen, and yuan, and euros, and pounds are substantially keeping pace (let alone the various pesos).

But, oddly, the currencies of many Gulf states whose primary export is petroleum and whose currencies are pegged to the dollar are having record inflation.

Consider the following story:

http://www.freerepublic.com/focus/f-news/1976495/posts

This can't be true unless the currency is actually being devalued. If it weren't, the net effect on the gulf states would be a wash.

[DeaconBenjamin]

Are you stating that there would be no inflation with the Gulf state currencies if they were pegged to the Euro or Pound, or that there would be inflation, but less.