Showing posts with label Inflation. Show all posts
Showing posts with label Inflation. Show all posts

Thursday, June 23, 2022

The Food Value Cost of Ethanol: The Inefficiency of the Uneducated Politican

The hungry man sees the folly of Bio-Fuels before the World is starving. Politicians wait for the World to be starving then blame farmers, truck drivers, and War for believing  in the illusion of abundant food.  

**Special Note: Do you know why Putin waiting until after the 2022 Olympic games to wage war on Ukraine.  If you follow the global farm report you will glean that he, unlike President Biden, was waiting until the winter wheat crop was harvested, The Ukraine wheat fields are the largest in Eastern Europe  and feed not only Russian citizens but much of Europe.  Putin now has until fall to pound Ukraine before needing it is time to plant wheat again.  

With a quick scribble, Joe Biden recently signed an executive order allowing fuel companies to add up to 15% ethanol to gasoline used in personal and commercial vehicles. His reason was two fold--to steer the nation toward a more climate friendly position and to drop the cost of gasoline by "sticking" it to the oil companies. 

But does our President have even a clue as to what the cost of that move is for the American public. After all, US citizens have come out of a two-year economic lock-down only to see the federal government bungle everything from energy reserves to ever increasing volumes of commercially produced food that has been contaminated with foreign matter, and dangerous levels of bacteria.  Isn't it strange that the more our politicians focus on keeping us safe, the more danger we are in due to governmental inefficiency.

Mr. President,  Here's what one tankful of ethanol could take away from the US food supply.  Can America afford the biofuel World you envision and will we become dependent of foreign countries for our food in this time of transition?

The following list was compiled using a simple calculator (no computer modeling) and product conversion rates readily published on various agricultural websites such as the United States Department of Agriculture (USDA). These rates can fluctuate but are not generally disputed. 

Production rates for ethanol, as reported on the internet, are very different.  They range from 300 gallons per acre to as low as 15 gallons per acre. For the purpose of this list we have chosen the MOST efficient operation and budgeted 400 pounds of corn for this fill-up.

Potential Food Loss for each 15 gallons of Ethanol Produced in the US.

  •  10 large bags of corn or tortilla chips (10 pounds)
  •  12 boxes of corn muffin or hush puppy mix(6 pounds)
  •  10 boxes of Taco Shells, 10 count (8 pounds)
  •  10 Family Size boxes of Corn Flakes (15 pounds)
  •   20 Cans of Whole Kernel Corn (15 pounds)
  •  20 Cans Creamed style Corn (10 pounds--more cream less corn)
  •  10 large boxes of microwave popcorn (20 pounds)
  •  20 pounds farm raised catfish  (52 pounds-2.6 to 1)
  •  20 pounds broiler chicken  (32 pounds 1.6 pounds to 1)
  •  20 pounds of pork, any cut (60 pounds, 3 pounds to 1)
  •  20 pounds of beef, any cut (120 pounds, 6 pounds to 1 but can be higher)  
  • 1 bottle of corn oil for cooking (52 pounds of corn)


Yes, ALL this food can be produced from the corn used to produce ONE tankful of ethanol. But remember this was using the most positive outcome for advocates of ethanol.  The least efficient operation would use up 20 times this amount of food to produce one tankful of ethanol based fuel. 

Has to be Fiction?

Certainly, the math could be off slightly but the federal government diverts tons of corn into alternative energy products every years at the expense of the consumer.  A 2019 estimate of ethanol production was reported at 15 billion liters or roughly 260 million tanks of fuel. 

 An Economy and Government Based on Waste

Sadly, it isn't Biden alone or Trump or even the last 20 years of President's who should be held accountable for this insane notion that an economy should be based on waste.  It is the bean counters and data collection people who create a false narrative of wealth and prosperity based on numbers.  It is the politician who diverts  money away from cheap and sustainable food programs and celebrity and media driven campaigns using catch phrases like Food Desserts and Stop Food Waste in America that promote such waste. 

There is NO reason why anyone in the country should go without food. No reason except the federal government uses food and the environment as a tool against the general population and companies it sees as being to powerful. 

If we unplugged our computers, forget the marketing campaigns and look for yourself, what you think is racism, poverty and discrimination may seem a whole lot more like propaganda promoted by this country's leadership not its people. 

 

Thursday, May 12, 2022

Climate Change 2022: Let's Review What Has Happened and Where We Now Stand (A FACS Teacher Explains)

   Original Text Posted May 12, 2022

Two weeks ago, there were signs that World leaders had learned the importance of restraint concerning climate change initiatives.  Now as Bill Gates, former Secretary John Kerry (now US Climate Change Envoy) and other hard line climate scientists attempt to whip the World into a climate-focused frenzy ahead of the UN Climate Change Conference (COP27) in October, the dialogue is regrettably similar.  That leaves only one thing to do. As any good teacher does from time to time, it's time to review what we have learned and what we have not yet mastered.

Unlike other subjects which students forget as soon as they pass the test, Family and Consumer Science is about learning for a lifetime.  After all, life is one LONG test, is it not?

What Happened? 

1. In 2021, President Joe Biden proposed a HUGE spending package which would have implemented several infrastructure and social programs related to climate change. While the larger package failed in December, Biden has been busy putting some of his environmental programs into place by drawing from other departments.  While money was already budgeted to fund such military actions as those in Ukraine, Congress chose to use that event to pass a smaller spending package that not only funded $13 billion for Ukraine by also opened the door to additional climate change projects. In late May, Biden will restart 1970s era environmental guidelines for federally funded infrastructure projects. Those projects may now be required to adhere to unproven and, in most cases, impossible to measure carbon tracking methods. Clearly designed to look good on paper for the United Nations and our European allies these tracking methods do not appear to be in use by the Federal government for any of its own programs. Clearly expecting the American people to "do as I say, not as I do" these initiatives have the potential to add further fuel to the inflation fire.  Based on statements by Biden, himself, Kerry and Gates, the current concern is NOT the health or welfare of the global population but the status of its economy. Biden has repeatedly voiced expectations for Americans to pay the price for aid given to allies which are far more well-off than we are.   Mr. President, you are not JFK and for 60 years, the American people have stepped up to support those in need only to be expected to give more. 

2.  In early April, 2022, the U.N. Secretary General Antonio Guterres went off the rails in a statement claiming that World leaders were disregarding the eminent danger to the planet.  Again, the report he cited gives a conclusion but does not back up its statements with logical, verifiable fact. As a member of the U.N. Security Council, the US has an apparent obligation to go along with the report even if it is faulty and causes is own people to be harmed in the process.

3. Following the U.N.'s emotional stand approximately 1000 scientists of unknown background protested for climate change solutions.  In lock step with the narrow-focused carbon gas theory mindsets, these protesters resorted to emotional pleas instead of fact.  At the heart of the protest, one young person expressed the opinion that scientists deserve to be heeded on face value alone and not provide physical proof of their findings.  

4.  In March/April, several media outlets and government agencies sent out reports of catastrophic changes at the poles and along coast lines.  The reports were so erroneous that they were easily debunked by simple scientific explanation.  It appears that those working in the colder regions of the planet have difficulty recognizing what is and is not a freezing temperature on the Fahrenheit and Celsius scales.  Rest assured that at all times throughout the forty years of climate change concern, the polar ice caps have never been in danger of being above freezing.  In similar fashion, the  long history of measuring sea level by how far the tide comes in, was at the heart of this scientific folly. Scientists' use of computers for modeling could not compute the ever changing forces of gravity, hydraulics, erosion and planet rotation. What was reported as oceans rising was little more than the natural action of erosion on the beaches which varies greatly from place to place and day to day. 

5. Recently, The Atlantic and The Guardian have posted well written articles highlighting the weaknesses in the knowledge base of our scientific community and lack of basic understanding of how the environment works (so much for the impact of STEM funding) as well as the questionable use of closed research studies to gain status and funding for programs.  Both expressed important findings regarding the unreliable nature of the conclusions drawn in the climate change fight. Mainstream media has also become more cautious in how they report scientific data choosing to look at solutions rather than focus on cause. 

Where We Stand?

For all practical purposes, the World is in the same position it was a year ago. 

Regardless of the Iffy nature of current climate change information, the countries of the G7 still hold fast to the idea of carbon-gas being to blame for the apparent warming of the Earth. Very much focused on solutions that can be marketed, these countries ignore the climate studies that disagree with their assumptions. 


India, which has experienced extreme weather for some time, has developed studies which are contradictory to the findings of  the U.N. report.  While every one agrees that climate change exists, what causes or defines climate change is still up for debate. Like the author of Air Pollution's the Answer! How Clean Air Policy Compromise the Plane and Public Health, India tends to side with other causes for the clear skies which now allow the sun to bake the country.  

Isn't it interesting that the countries which now have mild weather seem the most determined to remove CO2 gases from the atmosphere while others which have long endured periods of drought see clear skies and little rain as a far more concerning situation.

Unfortunately as long as industrialized nations are looking for a way to make money off of climate change, there will be no real solution for any of planet Earth's citizens.


Sunday, February 13, 2022

Inflation 2022: Craziest Inflation Advice EVER!!! But, Worth Reading

*Background: As anyone over the age of 40 expected, the real estate market has pushed back on two years of government regulations by gobbling up properties and turning them into rentals. The banks that finance such profiteering are absolved of any wrong doing by lending money to businesses without direct connection to individual transactions.   These are the methods that England used to wipe out the Irish and Scottish people that would come to Americas for a better life. They are the ways used during Reconstruction to further punish the South and it is the path of hands-off leadership that lead to the not quite so romantic days of the Roaring '20s with its high crime rate and out of control stock market.  

Now in a position of collusion with insurance companies, property owners, brokers and builders, these industries use computer generated statistics to elevate property values and justify rising rates.  Believing the government will again and again  bailout the industry, they are unconcerned about a second housing crisis and stock market crash.  What our capitalistic society fails to remember is that, at some point, the law of supply and demand is offset by the sheer ability to pay.  No amount of socialized income can satisfy the greed of those who believe they are entitled to more.  Entitlement is an attitude that infects all social strata, gender and religious backgrounds.  It causes abuse of the elderly, wipes out wealth with a single lawsuit or telephone scam and allows members of Congress to amass wealth by pushing programs which aid some but hurt many. Families must realize they have the power to say "NO!" in a loud voice, without protests or fighting and in an effective way that gives rise to fresh start for this country. Save rather than Spend. Avoid the Stock Market and be satisfied with security rather than the promise of a comfortable retirement.  It might be old-fashioned but relying on either party, Republican or Democrat, is the biggest risk to the American family.

 

sShhh!  This financial perspective is different than those offering "sound advice" about how to deal with the growing inflation problem.  Truly, some will think it is CRAZY! In reality, what so many economists and planners fail to remember is that the vast majority of American citizens make less than $100,000 a year and hey cannot afford to lose even on penny to inflation or stock market corrections. 


Gained from the experience of trying to start a family during the last inflation run in the late 70s and early 80s, this advice is meant to protect the family's cookie jar emergency fund as well as putting skids to inflation in a way that the federal gover nment cannot.  Consumers have all the power. I told you it was CRAZY! 

What is Inflation?

Technically, inflation is any time the price of something goes up AND the customer is willing to pay that price.  Inflation is not some theoretical given that is like the sun rising every morning. Inflation only happens when people are willing to pay the increase. It can be controlled. The interesting part of today's financial advice is that no one tells consumers that they are in control.  WHY? Because then companies would have to dip into profits rather than pinch pennies. Besides inflation looks like economic growth when election season comes around.

It wasn't until the Great Recession that those who lost big in the previous 30 years realized that people do not have to automatically respond to inflation by pinching pennies and doing without.  Instead, they learned to take control of their finances and not wait for a government bailout which would never come.  Rather than start spending and buying on credit which was what consumers were advised to do, this last recession lasted longer as a result off consumers controlling their spending. Even with war and natural disasters, inflation was held at a very low rate.

What Causes Inflation?

Any increase in money in the marketplace can cause inflation. It can happen locally when a large employer gives a big raise that coincidentally covers an increase in insurance. It can also happen nationally whenever there is a tax cut, spending bill or war which keeps government spending more than it takes in (romantically called printing money which was what independent banks did during the 1800s)

Interestingly, the last time the federal government had a budget surplus was during the Clinton administration with a national debt of $5.6 trillion dollars.  Since 9/11, every administration has had a war, financial crisis, natural disaster or other reason to pump money into the economy.  Today, the estimated $29 trillion dollar national debt is approximately 6 times what it was since 2000. This is the biggest cause of inflation. **Apparently Nancy Pelosi is coming out against this assessment in order to rally public support for a modified Build Back Better spending plan. She does not live paycheck to paycheck.

Like the period between, 1965 and 1982, this round of inflation has been coming for a while. It started with the War in Afghanistan, was fed by the housing crisis in 2008 and then topped off with the Trump tax cuts intended to boost the stock market and big business. The Pandemic's generous stimulus policies coupled with business closures were just too much disruption for the economy to absorb.  Now with the promise of a $1.2 trillion infrastructure bill and possible large spending bill on the horizon, only consumers have the power to keep inflation down.  It's clear the economy is more important that working America.

Curbing Inflation the Family Way

Consider this information before making any financial decision in the near future.

1. Always Pay Your Rent or Mortgage - No one bails out the individual family.  The moratorium on mortgage and rent payments may not be working out the way it was supposed to during the pandemic. Banks and real estate are big business, not community members like they were a hundred years ago. Even in the Great Recession there was little help for people behind on rent and mortgage payments. Make this a priority or move to a cheaper location. 

2. SAVE Rather than INVEST - Wherever there is a boom there is a bust and the only money that is secure is that which is kept in a Federally Insured account (FDIC).  What investment bankers fail to tell you is that you can lose as much as you put into a stock based 401K or mutual fund. They also do not tell you that one out of every four years (since 1980) has been a loss year.  Pension funds change. Employee stock options can be worthless. Only insured savings accounts limit inflation and risk.  Remember the stock value of a bankrupt company is close to zero.  Saving and paying down debt can give just as much of a net return as investing in high risk stocks.

3. Cancel Automatic Payments of All Kinds - We all have them.  Those online accounts and monthly or yearly subscriptions and payments that are just easier if the company takes care of them. Except that it's a good way to overspend. It doesn't matter what they are for--streaming services, charitable gifts, memberships or warranties, these costs drain money when you might need it for something like rent.  No one is saying to stop giving or watching--just change the way you pay for them with a cash limit debit card. Disconnect from you primary bank account and load money onto your payment card each month as you can afford it.  That goes for utilities as well. Only use your bank's payment system and follow a budget. Better to miss a month at the gym than lose your home or car.  

4. Reduce Insurance Coverage - The insurance industry has had a tremendous few decades and it has managed to use guilt and fear to keep families buying coverage amounts far greater than most need. Deleting duplicate and add on coverage you don't need (towing or rental when you have three cars at home) and raising your deductible can reduce costs without reducing the important coverage.   Contrary to what might be believed, it is unlikely that lawyers will go after cases which have little chance of payout. In other words, you increase your chances of being sued if you carry large liability policies or have big investment accounts. Check your policy regularly and do it online which is where more details are available. You may find that the company has "protected??" you by increasing coverage beyond reasonable amounts.

5.  Avoid Bulk Buying - This sounds counter intuitive but bulk buying leads to increased waste and encourages inflation by stressing he supply chain.  Buy only what you need. Part of the inflation mindset is to buy it now because it will cost more tomorrow. Costs will go down ONLY if consumers buy just what they need at a fair price.

 6. Pay Attention and Use Your Voice - Over the last two years, companies were more or less free to do as they wanted. Insurance and technology companies revamped policies and services. Manufacturers cut product lines. Start paying attention to what is different and accept you might have to look harder to get what you want. Read the bill BEFORE you pay it and ask questions. Evaluate products fairly rather than being nice especially on stores such as Amazon.  Complain to regulator and consumer protection agencies when a company has less than excellent customer service. The Better Business Bureau, Federal Trade Commission, state licensing bureaus and Federal Communication Commision, all, have online complaint forms.  Be specific and give details.  Standing up to a company can make the price go down quickly and it only takes one complaint to alert upper management that something is wrong locally.  Inflation is as much about consumers having confidence in their own powere as it is about actual cost increases.  

Recently President Joe Biden was asked WHEN WILL INFLATION STOP?  With the government stimulus packages just now ending, it is too soon to expect inflation to go down but a drastic change could come in as little as three months if consumers take charge and spend wisely. 

There is a difference in the way the President is handling the economy. While both Republican and Democratic leaders are clinging to old ideologies and solutions. Biden might be looking to do something unique and different.  Could restoring money to the Social Security Fund be in the cards or a balanced budget that doesn't constantly need influxes of cash?  Could the federal government treat all states equally for a change? Could federal regulation make sense to more than the 535 members of Congress?   Its hard to tell what the future has ahead of us. 

All the same, working families need to be prepared for what may come. They will survive as long as they pay attention and do what is best for the long haul.