Note – There is an error in today’s podcast. When I stated that it took 400 pounds of corn to make a gallon of ethanol that was a mistake. What I meant to say was 400 pounds of corn to produce 25 gallons or one tank of gas.
Today we will start off with a quick look at two financial stories that are being spun as “positive”.
First we will look at the decision by the Federal Reserve to bail out Freddie Mac and Fannie Mae and how once again the M3 Money supply will be inflated further devaluing the dollar.
Second a few quick comments on the decision by InBev (a Belgium company) to buy Anheuser-Busch for 52 Billion Dollars. Let’s ask if this is just one of the first examples of the weak dollar resulting in foreign take overs of profitable American companies.
Moving on to the main topic of todays show we will cover a major hot topic in the energy sector, the production of Corn Based ethanol. We will discuss some of the chief problems with ethanol such as..
- Ethanol can’t be pumped in pipelines
- You loose energy in ethanol production
- It would take 97% of U.S. land to fully provide for our annual fuel consumption
- Corn is resource intensive
- The escalation pricing in the global food market
- It takes 11 acres of land to produce enough corn for one average American vehicle
Resources for this Podcast
- InBev Buys Budweiser
- Cleaning Up Freddie and Fannie
- Small Town Papers Article on Ethanol
- Cornell Study on Bio Fuels