Thursday, August 7, 2008

Moronic EPA Rejects Ethanol Waiver Request of Texas Governor Rick Perry

As Texas Governor Rick Perry said in response to the idiotic decision by the EPA to refuse an ethanol waiver, "Congress specifically created an emergency waiver provision for situations like these and EPA refuses to implement it."

In the latter part of April, Perry asked the EPA for a 50 percent waiver on the so-called Renewable Fuel Standard (RFS), which artificially forces about 9 billion gallons of corn-based ethanol to be added to U.S. gasoline supplies on a yearly basis. Next year it'll rise to 11.1 billion gallons.

It's caused huge food problems around the world, and has significantly impacted the price of food in the U.S., as prices continue to rise.

According to EPA Administrator Stephen Johnson, the agency denied the waiver because it did not find it caused "severe economic harm."

I wonder if he knows how stupid that sounds? He's basically acknowledging it's causing harm, but as long it's not "severe," it's ok. Screwball!

The only recognition that it's causing higher prices was that it has in the EPA's terms it is only adding 7 cents to each bushel of corn.

While that could be disputed, even if it's true, you add that to the number of bushels sold and it's significant. But that's far from the whole story, and Johnson and the EPA know it. There are huge residual effects not talked about, like the cost of feed and seed, which adds to the price of various meats. Even more significantly, the increasing use of acreage for corn is causing less acreage to grow other crops, which is also raising their prices.

The cost of ethanol is huge, and largely not worth the effort. It's already seen as a disaster in the making, and the usual good intentions of government interference in the free market is again rearing its ugly head, as people pay the price of lawmakers' folly.

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