As gas prices rise and demand decreases due to economic conditions, the following excerpts show how energy and food are being used by the government to manipulate these commodities for their own purposes. The Obama administration's views on energy have been inconsistent and without logic. The coal industry has been decimated by government regulations and labor unions to make the cost of this form of energy necessarily skyrocket.
The law requires 40% of corn production in the United States to be used to make ethanol. The energy required to make a gallon of ethanol is approximately the same energy that is released in its combustion so the net energy production is zero. The reality is that ethanol reduces the mileage per gallon so the average American must buy about 10% more ethanol based gasoline to drive the same amount of miles.
Who wins? The government collects another 10% in taxes. What are the consequences?
1. Reduced mileage/increased energy usage
2. Increased taxes
3. Motor/hose corrosion
4. Higher corn prices
5. Higher livestock prices
We are being played by the government but the real goal is control. Whoever controls your food and energy controls you. Liberty guarantees our freedom and it will be defended. How do I know? Because the government understands this core founding principle and knows we will defend ourselves but more importantly, we will defend Liberty. Do you really think the National Weather Service will be receiving those hollow point bullets?
David DeGerolamo
The White House is "dusting off old plans" for a potential release of oil reserves to dampen prices and prevent high energy costs from undermining sanctions against Iran, a source with knowledge of the situation said on Thursday.
U.S. officials will monitor market conditions over the next few weeks, watching whether gasoline prices fall after the September 3 Labor Day holiday, as they historically do, the source said.
It was too early to detail the size of any release from the U.S. Strategic Petroleum Reserve and other international stockpiles if a decision to proceed was taken, the source said.
Oil prices have surged in recent weeks, with Brent crude prices closing in on $120 a barrel, up sharply from below $90 a barrel in June. The United States and other Group of Eight countries studied a potential oil release in the spring but shelved the plans when prices dropped.
Exports of gasoline, diesel and other fuels are rising because U.S. refiners are able to make the fuels cheaper than almost anywhere in the world. That's because they have been able to access some of the cheapest crude oil. North American crude supplies are rising thanks to booming oil production in Canada, North Dakota, Texas and elsewhere. Also refiners that burn natural gas to help cook the crude into gasoline, diesel, jet fuel and heating oil are enjoying some of the cheapest natural gas prices in the world.
Exports of petroleum products, which set an annual record last year and were the single biggest export by value, are up 11 percent compared with a year ago. Much of the fuels that are exported are made with imported oil, and the U.S. remains the world's biggest oil importer.
Here’s a classic case of what’s good for the US being terrible for the rest of the world. That typically does not lead to good outcomes for the world. Corn-based ethanol fails on its own merits. The energy used in production far exceeds the energy savings from using ethanol over fossil fuel-based energy. The biofuel standards could be reached by less invasive sources like switchgrass and other natural sources. Converting so much corn into fuel at a time of a massive corn shortage makes no sense, not only for the world, but also for domestic livestock producers suffering from a decline in feed, domestic food producers who use corn as an ingredient, and so on.Under US law, 40% of the harvest must be used to make biofuel, a quota which the UN says could contribute to a food crisis around the world.
The United Nations has urged the US to stop this ethanol production mandate, citing the likelihood of elevated global food costs.
A drought and heatwave across the US has destroyed much of the country’s corn crop, driving up prices.
The US argues that producing much of its own fuel, rather than importing it, is good for the country [...]
Writing in the Financial Times, the director general of the United Nations’ Food and Agriculture Organization (FAO), Jose Graziano da Silva, said suspension of the quota would allow more of the crop to be diverted for food production.
“The worst drought for 50 years is inflicting huge damage on the US maize crop, with serious consequences for the overall international food supply.
“The situation reminds us that even the most advanced agricultural systems are subject to the vagaries of the weather, leading to volatility in supplies and prices, not just on domestic markets, but also internationally.”
Comment
Comment by Dolores COx on August 18, 2012 at 1:16pm I have a friend who wanted to bring a car from another country because he got 42 miles a gallon and the usa told him they could not do that. He look into it and found out that the motor that did this try to get into usa but the usa would not let them put it into the cars. Why
Comment by Donna on August 18, 2012 at 12:56pm Richie Laxton, Where are you in Texas? Ate you close to Athens Texas? If so i'd like to talk to you. Thanks Donna
Comment by Thomas on August 18, 2012 at 4:48am Please don't disregard the fact that The United States Federal Government is by far the largest single user of energy of all kinds that exists on the face of the planet. And we are paying for that usage as well as for our own. And the fifty state governments? I don't know but surely the fifty state governments are among the 100 largest users of energy in the nation. Cities and counties? There again, but it seems reasonable to assume that some of our largest cities and most populous counties are among the top couple of hundred largest users of energy of all kinds.
Cost is created when an amount of energy of some kind is used and dissipated. It is their massive energy usage that makes our 27,000 or so governments so damnably expensive to try to support. They're committing suicide--I guess we can watch and listen and maybe be entertained by their thrashing to and fro and their blaming of others for their having to suffer the negative consequences of their stupidity.
Comment by David DeGerolamo on August 17, 2012 at 10:17pm More news on the "economic recovery" and the stock market runup by our government based on energy consumption:
http://www.zerohedge.com/news/what-recovery-petroleum-deliveries-lo...
Comment by Pat Chadwell on August 17, 2012 at 9:12pm We used to have the best school on earth and we could do anything.. But today our schools are not much better than they are in Africa which is mostly none.. Today you get out of high school and you have the grade level of a 8th grader back in the 50`s and they are being told the government will take care of everything all you have to do is stand their with your hands out....
Comment by Donna on August 17, 2012 at 8:52pm Of course we're being played,obamas taking care of HIS people-the saudis! And as for the UN who cares what THEY WANT? Didn't all of the foreign governments have as much time on this earth as us,to learn how to grow food? Or were they too lazy to learn? Who made us the rest of the worlds KEEPER???
Comment by Richie Laxton on August 17, 2012 at 7:25pm Not long ago on my little internet talk radio show, I interviewed a woman who worked in the Bakan oil fields of North Dakota. She claimed the geologists there told her that they believe the Bakan is one of the single, largest, land-locked oil deposits in the world, and that there is at least one more like it just a few hundred miles south and west of there in the foot hills of the Rockies. Some of that oil is under Federal lands. Here in Texas where I live, we produce more Natural Gas than anybody. We are the Saudi Arabia of Natural Gas. When you go to the Gulf Coast and look on the horizon at night when it's clear, it's hard to tell where the twinkling lights of the oil platforms end and the stars begin. We have plenty of fossil fuel in this country. I know refineries have taken a hit in recent years which hasn't helped. But, there is no excuse for this energy situation that we find ourselves in.
The burning of corn juice may have looked good on paper back in the early 90's to the environmentalist and politicians. I know environmentalists now who say, it's never a good idea to use food as anything else except energy for our bodies. I remind them that it was their activist, older brethren who pushed for this ethanol policy years ago. I'm all for using energy wisely and not destroying our environment, but this is simply asinine. And, because of the corn shortages, thanks in part to this massive drought, the oil companies can't maintain the ethanol production numbers required by Federal law, and are being heavily fined by Uncle Sam. Consequently, that expense gets passed on to the consumer too.
We've let the government weasel its way into our cornfields and our gas tanks. Now, here we sit; higher gas and higher food costs. This hyper, government control of energy and agriculture has finally backfired. Government run healthcare anyone?
Comment by Gary Wren on August 17, 2012 at 7:08pm The liberals and rinos are nothing more than carpet-baggers like raided the south and prayed on suffering people for their own gain and benefit...They should all be tarred and feathered and run out of the country on a rail......
Comment by Tino on August 17, 2012 at 6:51pm We are being played in more ways than one: http://tdarkcabal.blogspot.com/
Comment by David Wooldridge on August 17, 2012 at 6:10pm We, as political junkies know what's driving this; Control. No matter what the industry, the current administration actively seeks to control every aspect of necessary functions by we, the people. The LESS we control, the less we can fight/rebel against an overly opperssive Federal Government. Natural resources, commerce, EVERYTHING!
THIS is what this election is all about. Do YOU want the Government to make your decisions for you?
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