Thursday, October 30, 2008

VeraSun Energy Corp. May be Close to Declaring Bankruptcy

It's far past time to end the taxpayer subsidizing of the ethanol industry in America, as another big ethanol company is on the verge of declaring bankruptcy.

This time its VeraSun Energy Corp., based in Sioux Falls, South Dakota, which is close to declaring bankruptcy. The share price on Wednesday closed at a pathetic 49 cents a share, as they, along with many other ethanol companies, are quickly becoming insolvent.

As usual with government-sponsored companies, the management is horrible, and strategies employed with an eye toward being bailed out regardless of decisions or the marketplace.

When companies aren't allowed to fail, like in the current financial climate, all it does is regard terribly run companies with a safety mechanism that doesn't belong there.

In the past industries and companies were allowed to fail in order that the best-run companies emerge with the best products and services at the best price.

The foolishness of ethanol in America simply needs to be dropped and the market left to decide which way it wants to go. Most Americans want to drill for the proven reserves of billions of barrels of oil while we work on legitimate energy alternatives. Ethanol isn't one of them.

Update: VeraSun Files

Tuesday, October 28, 2008

More Ethanol Woes as 23 Illegals Arrested at Plant

The ethanol debacle continues to vomit up bad news, as at a Casselton, ND ethanol plant, 23 illegals from India were arrested. The illegals had phony social security cards and drivers licenses from other states.

At a hearing scheduled for Friday, the illegals will face charges of having counterfeit documents in their possession.

While the workers entered the country legally, they were here on short-term visas.

Managers for the Wanzek Construction company contacted authorities when they became suspicious of the workers status in the country.

Wednesday, October 22, 2008

Livestock Organizations Outraged Over Agriculture Secretary's Comments on Using USDA Loans for Ethanol Companies

It's almost unbelievable that Agriculture Secretary Ed Schafer said recently that he is considering using USDA loans to bailout the horribly run ethanol companies which are already pillaging taxpayer dollars in order to even launch or survive.

Now the reason they are whining for more money is they invested in corn futures. What are they doing investing in corn futures? They simply don't care.

In an extraordinarily stupid statement, Schafer said they "got away from their focus on producing ethanol and started speculating in the commodity markets. It's hurt them."

I can't think of anything more criminalizing than that statement. Now the Agriculture Secretary wants to do his part be bailing out the dubious corn-based ethanol industry? I don't think so.

The industry is worthless and a huge mistake. It's past time to abandon it, drop all subsidies, and let them all go out of business. It's already starting to happen, and it needs to be put to rest now.

To even consider helping these screwballs by offering them loans to cover their speculation in corn futures is outrageous at least, and potentially criminal.

Thursday, October 16, 2008

Greater Ohio Ethanol Latest to File Bankruptcy in Ongoing Ethanol Debacle

Another company bites the dust in the continuing exposure of the ethanol debacle in the U.S. The latest casualty is the Greater Ohio Ethanol company, which has filed for Chapter 11 bankruptcy.

As usual with the ethanol hoax, people let their emotions get in the way of facts, and they make terrible decisions. Unfortunately it's creating a false hope in many communities across the country which were counting on it to make a difference in where they live.

In this particular case, the amount of water needed to make the fuel was seriously miscalculated by half of what is being used, and that has pretty much destroyed the project and the hopes of the people that were counting on it. This is becoming the story across numerous communities in the U.S.

While chapter 11 bankruptcy is initiated in order to attempt to reorganize, the sounds of this is another company has foolishly entered into the ethanol fray without the understanding of the high costs of ethanol.

Friday, October 10, 2008

Weak Economy Exposes Ethanol Subsidy Debacle

Towns across America ran hard to partake in another government scheme to buy votes through offering subsidies for the production of ethanol.

Many buildings and plans are now sitting empty and idle, while a growing number are declaring bankruptcy, or are already in the process.

While mainstream media is in love with the industry, and refuses to point out the horrid effects the misguided effort has or will produce, that doesn't stop the realities of it from happening.

Many goofy liberals even tout it as patriotic. In reality it's not patriotic, it's idiotic. Not only that, even though it's increasingly apparent that it's a terrible idea and will have more negative impacts than positive, it's now becoming close to being embraced as a religion by liberals, and they are clinging to it like it's their god, rather than the folly it is.

The weak global and U.S. economy has exposed the weakness of the debacle, and that's the reason so many ethanol projects are shuttering their doors.

The reason it's faltering is that people couldn't care less about it, and are starting to understand the extraordinary costs related to forcing upon them.

A large number of these attempts have partly come from taxpayer money as well as subsidies, and that has in many cases been money thrown down the drain. It's past time for the government to be involved with this stupidity and let the market decide what type of fuel and energy they want to use.

For now, in America we have billions of barrels of oil available for use. We need to drill and retrieve that for our fuel before we do more stupid things that not only cost poor people around the world from soaring food costs, but the damage the pursuit is doing to the environment.

What's worse about all this is many small towns joined the bandwagon, hoping it would produce some jobs for the communities. Now they have empty buildings and ruined dreams as the fantasy of ethanol being some type of savior to the community has come crashing to the ground.

Yet in the midst of the government-induced economic crisis we're now in, they still hold to devastating and disastrous ideas that interfere in markets and destroy the lives of unsuspecting people.

Related Stories:

U.S. Ethanol Subsidies to Keep Food Prices High Everywhere

More Reasons to Drop the Ethanol Nonsense

Ethanol no more than Heavily Subsidized Cash Crop Supported by Powerful Lobby

Corn Farmers in Denial over Taking Responsibility for High Cost of Food

Is U.S. Government Responding Quickly Enough to the Ethanol Disaster?

Tensions Continue Building as Ethanol Continues to Cause Increase in Corn, Food Prices

Wednesday, October 8, 2008

Agri-Ethanol Products Company Founders Indicted for Bribery, Extortion

The founders of Agri-Ethanol Products, Jim Perry and Dave Brady, have been indicted by a grand jury on a number charges.

Charges include conspiring to commit extortion and bribery, aiding and abetting extortion, and aiding and abetting bribery. Both men have also been charged with perjury in relationship to the case.

Evidently the two wanted to speed up the process of attaining permits from the N.C. Department of Environment and Natural Resources, and so allegedly offered a DENR employee $196,000 in exchange for moving things through quicker.

Boyce Allen Hudson, the DENR worker pleaded guilty in early 2008 to extortion and money laundering. He is currently serving a 40 month prison sentence.

The failed Agri-Ethanol Products company had original plans to build up to 20 ethanol plants along the East coast.