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MarKets -- all markets -- move on anticipation and correct on the news; and in case nobody's noticed, a lot of that anticipation, as expressed in the mainstream media, has focused on the drought in the Midwest, the effect on the corn crop -- corn is now a component in the production of both food(meat) and fuel(ethanol), and possible material for the global warming drum-beaters.
There is no doubt that this year's crop is likely to be a disappointment. But we've been through thiis before (most recently in 1987) and both the opening of new markets since the end of the Cold War and the increase in diversity of energy alternatives would inveigh against a more severe spike in prices. And volatility, rather than scarcity itself, is what were going to have to learn to both anticipate and deal with. Security, as peddled by Big Brother/Sister, carries the higher price tag over the long run.
Oil is now so plentiful that we are exporting it. We watch corn prices to determine what we pay at the gas pump.
Sad isn't it ?
l'd like to see some stronger proof of the claim that we are "exporting" oil. I do know that some oil from the Bakken field is moving (by rail, since no piplelines have yet been built, partly because the "dispersed" nature of the field makes them more expensive) to refineries in Canada. But that hardly constitutes a "net export".
I'd like to see some proof of that argument that we are "exporting" oil. I do know that some oil from the Bakken field is moving (by rail, since no piplelines have yet been built, partly because the "dispersed" nature of the field makes them more expensive) to refineries in Canada. But that hardly constitutes a "net export".
I believe he has confused petroleum product exports with crude oil. We are major importers of crude oil while we export petroleum products.
Fuel prices have been artificially high since the Bush Administration. The price of oil has remained around 100 dollars per barrel for years. Fuel prices will surge in the future because of this idiotic corn idea. Now that corn is a percentage of fuel, the fuel prices will be subject to fluctuations in both corn and oil prices, making it very unstable.
The markets at work. Go price coran for examle which is also based on the markets and demannd verus supply.
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