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Posted in the US News Forum
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Nice back hand comment at the end, Lorax, but the fact is my mind is both open and clear while yours seems to be rooted in favor of providing justification for the federal government to both create and manipulate a cause that happens to be something you identify with. By doing so you are betraying free market principles and genuine conservatism. I am not. If you happen to believe that the ethanol industry was created by free market economics you are sadly mistaken. It came about because of environmentalists within our government, and the complicity of certain subsections of the agricultural producers. Prior to the government's decision to both subsidize and use tax codes to create incentives for producers of ethanol the industry was largely a loser. Now every gallon of regular gasoline contains at least 10% ethanol even though the public did not ask for it and despite the fact that its deficiencies create both problems and costs for the consumer. Our alternative is to pay considerably more for a higher priced product or just suffer. In the case of those of us using certain types of equipment or transportation, we must choose to pay the higher price. Your federal government created and mandated this. It was NOT the creation of a free market. I won't even go into detail about how the government creation of the ethanol market ... which benefits VERY few, all special interests ... plays havoc with the costs of feed corn and, because burgeoning costs in one commodity inevitably place pressure on other crops, inevitably drives up the costs of wheat, oats, and even soymeal. Before we blame speculators we should trace the problem back to the federal government which elected to create this market. The speculators only took advantage of the kept market they created. I could give you specific examples of the distortions in every agricultural commodity, Lorax, but my sense is that you really haven't much interest because your mind has been made up. I look at the balance sheets from 2005 and today and cringe at how ideological policies absolutely destroy the very idea of free market capitalism. |
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To follow up on my response above, Lorax, my point
is that for the average person it does not matter whether it was a subsidy or an incentive that led to the creation of a federally mandated market. All he knows is that some choices are no longer available to him or that some choices are not choices at all .... they are simply what industry is allowed to produce. In sum, there has been no what you called "choice and free will." If you don't believe me ask any service station owner you know. |
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Continuing again this morning, Lorax ....
In my view the price of commodities should be a matter of supply and demand, except for those circumstances where weather or natural calamity creates shortages that create downstream reactions that the general populace cannot cope with given their circumstances. At that point in time I believe it is fair to justify remedial action under the general welfare clause for the sake of that populace. It really isn't that much different from the unscrupulous gas station owner who jacks up his price from $3.50 a gallon to $6.50 a gallon when a Level 5 hurricane is coming their way. Hey, I'll give you $4.50 for having it ready and able, but go to hell if you try to get rich over a natural calamity. Federal interference in the marketplace has altogether screwed and skewed us to the wall. They would have you believe it is about farm subsidies, noting that 80% of those subsidies go to "industrial" farms. Fair enough, I guess, but the fact remains that were it not for federal interference on behalf of the ethanol/ environmental industries would have resulted in cost-to-consumer prices roughly 40% lower than we see today on the commodity market. Just a hint, Lorax. 5 years ago ordinary soymeal, a basic in raising the protein level of animal feeds, stood at about $300 per ton downstream. A few years before it was apologetically at around $260. It had been there for years and years. Today a ton of soymeal is running at an all time high of $550 a ton. I can assure you that the added cost will be passed along to you whether you buy beef or cereal or whatever. Corn? A decade ago I paid $60 a ton on a good day. $90 was a really bad day. Today it is not uncommon to buy a ton of feed corn at $250 a ton. You can't blame the weather or industrial ag. Storage is at a significantly low number. The real issue is the federal decision to enter the ag market in a way that would distort the production of corn. That hitherto "ordinary crop" became a gold mine because of federal inter- vention. It took other cropland out of pro- duction for another commodity and put it into corn. Speculators capitalized. It invited the entry of clueless speculators who wouldn't know kernel of corn from a kernel of truth. Sorry, Lorax, but the pinheads in Washington don't have a clue about agriculture, energy, or the public interest. It is all about an almost fetish-like devotion to ideology and pseudo- intellectual nonsense. Given that a cataclysmic event could disrupt the market I understand the need for insurance and the need of a government to even attempt to avoid crazy swings in the cost of commodities to the consumer. Average it out and be done with it. |
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Man I tell you that you 100% right republicans worry to much about democrats and same with democrats I say I people would actually focus on the real life issues we are facing they would vote Ron Paul but they are concerned about: gays, environment, and power over the world. What we actually need to do is leave the world alone and isolate ourselves from the bs that happens and lick our wounds and restore our strength I say Ron Paul 2012 |
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“Antisocialistic” Since: May 12
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Amen to that! |
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“UNLESS !!!!!!!” Since: Nov 07
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I must have really hit a nerve this time! Just because I do not have the time at the moment to digest the several posts of your response - but out of respect I will. I will reply to the first and last paragraph now and get back to you on the rest....It was not a back handed comment. You mind is not open to this - evident by the fact that you did not read or understand my previous post. Currently the fed govt is manipulating the market by obvious and outright price fixing per congressional mandate that says what commodity (oil) will determine the energy rate. So if an energy product is deemed(by a measures yet to be determined) more than the subsidized - yes Bill subsidized rate for oil then government agencies including the military can not buy it. Had this logic prevailed a century ago we'd still be using sails. I did not say that subsidies do not exist. I said my business operates without them - preferably; and the government/Congress is taking away market incentives (research and finding a longer term solution) by dictating that government be excluded from development(ie the willingness to allocate some of their budget - just like private industry does to explore alternative product)when they are/would be the primary benefactor of said technological advancement. By condoning this governmental interference you would condone anti-market actions and statism. As to the rest of your rant on subsidies in alternative energy, ag and hopefully others in your diatribe - I will read and respond to soon. But I didn't have to - to know you missed the point. My perspective is one of pure capitalism that is pissed off that a niche client is now restricted from a market, which btw does not affect my company directly because my products DO correspond with oil because we knew the dumb asses would limit growth over the favor and short-sightedness of oil. It is unconstitutional and stupid and spurred only by political contempt. The fact is that the value chain that has different processes and variations of similar products needs to be explored by those willing to pay higher price in some circumstances. The military will in some circumstances pay a deep discount and other situations a very high premium for a variety of reasons. Its part of an open market. None of these are subsidies they are agreed contract price negotiations. Now the military is not the only player willing to do this - they just happen to be one of the largest which by definition and logic adversely and artificially impacts a niche capital market. |
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“UNLESS !!!!!!!” Since: Nov 07
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Predictable canned response. Corn/ethanol were indeed a result of direct manipulation and funded primarily by you guessed it big oil. They pushed many of the mandates once they got in the game and rigged the rules for the very few at the top. Soy a commodity that my industry uses from time to time has fluctuated naturally based on differing demands from competing industries including food, fuel, and other applications. We choose to use non-food commodity seed crops if we press virgin oil to produce bio diesel, but mostly recycle used cooking oil. You're are arguing the same thing and dont even realize it. Of course those were mistakes and unwanted intrusions to the market, but why would you remedy those mistakes by reducing choice and price fixing to choose the winner in a single commodity? You bitch about subsidies and price fixing and have no clue or want to admit that it happens with ALL petroleum based fuel products. It does not happen with bio diesel. For a couple of short years the government applied a credit that equaled a fraction of the credits the petrol supplier and blenders enjoy and they revoked that just as the industry was beginning to build its own infrastructure.Be consistent in your thinking Bill a commodity is a commodity. |
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“UNLESS !!!!!!!” Since: Nov 07
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For the record the BCAP credits were a type of subsidy. We have never relied on them and they were a fraction of petroleum credits. They presently do not exist. What I would like to see is for Congress to reverse its ridiculous mandate capping all energy expenses with the subsidized value of oil. Return it to an open market like it should be. FtR I am for ending all other ag subsidies traditional or otherwisse and starting from scratch in an open market. Can you afford that on your farm Bill? I can on mine.
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“UNLESS !!!!!!!” Since: Nov 07
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Damn Topix! Always looses my best posts!
There should have been one in between the two above that answered your post on subsidies and your predictable argument Bill. Short story is that Ethanol was fixed and ruined by big oil, Corn sucks because of that and soy has been affected by alternative fuel and food markets and other technologies you probably are unaware of. Bio diesel has never enjoyed subsidy at the level of ethanol or agriculture for that matter. BCAP existed for a few years and then was revoked again at the prodding of big oil. Finally, I do not want subsidy - I want the government out of the business of picking winners and price fixing the market. You have made my points for me and helped argue for the government staying out price fixing markets even if it thinks it will save money in the short term. |
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“UNLESS !!!!!!!” Since: Nov 07
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perfect its back - sorry for the redundancy - re-post.
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United States |
The right wing Republicans controls House Of Representatives of 400 members who represents ,gets $150,000 for supporting the big Oil and those still receive 38,000 for their effort.
Yep crony capitalism at work. |
I never said a tie. I don't wear a tie unless it's formal or I'm in the mood. We know what you got father's day.:) I'm surprised no one (especially Bill because I directed it at him) got my quote from the admin answering a reporters question on allowing children of illegals to stay. That's where I got the quote from.(another pandering for latino votes) I've been reading this blog a lot because the perspectives fascinate me. Just not commenting because issues and opinions on the current topic of alternative energy are getting rehashed instead of renewed. Next on the blog agenda should be the SCOTUS striking down the individual mandate (which by clerks acct is 84% likely to happen). What is going to happen when the insurance companies cannot reign in enough $$$ to keep promises such as no excluding pre-existing conditions. Which reminds me of DR. Paul..during the republican primary debates, When asked by Wolf Blitzer if a 30 year old uninsured man with a health crises and no insurance should be left to die, the answer was NO! The audience erupted with shouts of "Let him die". For those that believe in God and judgement day, imagine standing in front of God and defending this willingness to let the sick die without care. My libertarian ideology is conflicting with my hatred of insurance companies which is conflicting with my love of the free market which is conflicting with my humanitarian spirit. Wo is me. |
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ps..stop corn subsidies. Subsidize fruits, vegetables and beef.
sane..yes...money maker maybe..political contributions ..not likely.. result..subsidize corn |
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http://www.tumblr.com/tagged/too-bad-libertar...
Strange..I got gary johnson with 84% and ron paul with 72%. interesting survey from young people. |
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A special day on Saturday .... given 2 reserved
tickets at the Olympic Trials at Hayward Field in Eugene .... Tracktown USA, no doubt the neatest place to attend a track and field event in the United States. Moment to remember .... watching 24 year old Ashton Eaton, an Oregon native and UO graduate, break the world record in the decathlon. The final event, the 1500, was an absolutely mind- blowing experience. The record had stood for 11 years and he was only the 2nd person to surpass 9,000 points, largely because he won 7 of 10 events. Best of all, he is a genuinely nice guy. Sometimes it is nice just to set aside politics and just enjoy some of the sweet moments in life. |
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“UNLESS !!!!!!!” Since: Nov 07
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I am floating around the salt flats in low country for a week. See ya next week.
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Since: Jun 12
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If Ron Paul went third party he would certainly get my vote.
If not than I don't think anyone will get my vote. I am sick of voting for Jack@sses |
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Since: Jul 11
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Politicians that are truthful about these bogus wars will never win a primary
I respect Ron Paul |
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Since: Jul 11
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"The Massachusetts health care insurance reform law, St. 2006, c.58,[1][2], enacted in 2006, mandates that nearly every resident of Massachusetts obtain a state-government-regulated minimum level of healthcare insurance coverage and provides free health care insurance for residents earning less than 150% of the federal poverty level"
John Kingsdale! |
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