Well, they do have the advantage of having enough land to convert huge tracts of it into alcohol-producing sugarcane fields.
-Comment by Luis M

yes, there’s hardly any land in the USA.

Since Bush took over, the dollar has plummeted, oil has skyrocketed, inflation has taken off but the numbers are massaged so you do not know it, resulting in a reduction in real incomes (gas prices are keeping up with inflation, your salaries are not), the housing market has crashed due to the crazy sub-prime mortgages the Fed allowed (housing prices were simply keeping up with real inflation), our factories keep moving jobs to China. Things are going according to plan.

We are said to have 3 bright linings.

GDP growth and Export growth, and Retail Sales.

Unfortunately, GDP growth from Exporting capital goods used to make product we used to make in other countries, and from trading in SIV’s, CDO’s, MBS’s do not do much for the average consumer. It is also inflated by the fraudulent CPI.

Retail sales are also inflated by the false CPI, and also included food and energy sales. Notice how they never give you core Retail sales like they do with CPI. Also, many consumers buy retail with credit cards where they must pay usury interest rates on money loaned them that was created out of thin air.

So as we head into a recession with interest rates already at historically low levels, tax rates also at low levels for the rich anyways (critters pay 50% of their income in taxes in one form or another), war time spending which is usually a boom to an economy, and government spending at generally all time highs, and a housing market in free fall, what will 2008 look like. Think 1929, and then fast forward to 1941.

Like California has shown (or tried to show, at any rate) you don’t have to wait for an alcohol-based economy; instead, you can set up state laws to demand better mileage from new cars. Get some better use of the current gas.

That is, if the Federal government lets you.

BTW, I’m not sure about this, but I thought China “unpegged” the yuan back in 2005?

(http://online.wsj.com/article/SB111409061337313200.html?mod=home_whats_news_us)

I’m not an economist, but I’m guessing that there are still some strings attached between the two currencies.

Anyway, high oil prices will (hopefully) decrease demand domestically, although the point is well taken that international demand is as strong as ever.

Well, they do have the advantage of having enough land to convert huge tracts of it into alcohol-producing sugarcane fields.
-Comment by Luis M

True. What we’re seeing is big oil encroaching the ethanol market with it’s eyes on a monopoly. It’s the only way they want to play the game; guaranteed profit with no competition.

Corporate Terrorism at it’s finest?

Well, they do have the advantage of having enough land to convert huge tracts of it into alcohol-producing sugarcane fields.

Isn’t your junior high back in session yet?

Speaking of Brazil, why is it that a ‘3rd World’ country can totally covert to burning alcohol in cars while we make umpteen excuses about the high price of gaosline?

Again, why?

Comment by Zimzone

In So Cal. I bought gas this morning and it was $3.49 a gallon (91 octane). For me, I expect $4.00 a gallon by next summer – or possibly into fall ‘08.

Nothing is changing on the supply side of the equation. The major difference is on the demand side of the ledger (India and China).

Watch out for ’sudden’ refinery breakdowns or maintenance. That will hint as to how fast petrol will go up and when. Also, be aware of ‘pipeline issues’. These are devious attempts to increase oil company profits.