Skip to main content

Real cost of corn ethanol?

Have a look at this article by Ronald Cooke on the true costs associated with corn ethanol production.

In, "What Is the Real Cost of Corn Ethanol?", Cooke weighs the perceived benefits of corn ethanol use against the tally of its direct and indirect costs.

Will corn ethanol result in grain shortages and higher food prices? Does its production and use in automobiles result in a reduction of greenhouse gas emissions? Can we really reduce our reliance on foreign oil with this homegrown energy scheme?

Read the article and hear Cooke's arguments for yourself. While you're at it, keep in mind all the things we've been told about corn ethanol in advertisements and news media.

Consider the importance of the return on energy metrics laid out by Robert Rapier in his recent essay for the Oil Drum.

Especially keep in mind the following assertion made by ADM Chairman G. Allen Andreas in a May 2006 Reuters article:

"I think any knowledgeable person in today's world would recognize the fact that the reason we've got malnutrition and hunger is not because we're turning food into fuel," said ADM Chairman G. Allen Andreas in response to a question from an analyst on a conference call following the company's quarterly earnings report on Tuesday.

"We've got hundreds of millions of acres of land in Brazil that are suitable for arable development into farmland that still have not been cultivated without any infringement on the environment," Andreas added. "There's plenty of capacity to make food."

See, there are hundred of millions of acres of land in Brazil suitable for farmland development. All we have to is convert some more of that pesky jungle floor and savannah into soybean and corn fields.

Aren't you glad we have people like that directing energy policy in this country?

Popular posts from this blog

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4.

Slate profiles Victor Niederhoffer

Slate's recent profile of writer/speculator, Vic Niederhoffer has been getting some attention from traders and finance types in recent days. I thought we'd take a look at it here too, to offer up some possible educational value from Vic's experiences with trading and loss. Here's an excerpt from Slate's profile of Victor Niederhoffer : " I've enjoyed getting your e-mails. It sounds like you've thought a lot about being wrong. Well, the reason you contacted me, to call a spade a spade, is that I'm sort of infamous for having made a big, notorious, terrible error not once but twice in my market career. Let's talk about those errors. The first was your investment in the Thai baht, which pretty much wiped you out when the Thai stock market crashed in 1997. I made so many errors there it's pathetic. I made one of my favorite errors: "The mouse with one hole is quickly cornered." That is key. There are certain decisions you make in li

William O'Neil Interview: How to Buy Winning Stocks

Investor's B usiness Daily founder and veteran stock trader, William O'Neil share d his trading methods and insights on buying winning stocks in an in-depth IBD radio interview. Here are some highlights from William O'Neil's interview with IBD: William O'Neil's interest in the stock market began when he started working as a young adult.  "I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."    He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.