It is becoming more and more apparent that the folks in DC really have no clue as to what their actions are doing back home in the real world. OR, they do know, but simply do not care. I think the latter is true.
It seems like only a month ago, they were promising they would not micro manage the auto industry. Well, except for Barney Frank making calls to reverse decisions to close plants in his district. No really, they will stay out of it.
Except to dictate that GM makes smaller cars that are more efficient, since they say that is what we the people want.
And to extort money out of the States to use the GM plants, instead of using the most logical ones that would accommodate the new small putt putts. Because the government never does anything on a cost basis.
But that was last month. Now they have the bright idea, since they own 2/3's of the American companies, now they can push everyone to using E85 Ethanol. More of the global warming none sense.
I know, they can't remember very far back, but just 2 years ago their push for Ethanol created a few problems.
Since E85 is made from corn. The brilliant folks in DC decided to offer higher subsidiaries to farmers growing this strain of corn. The corn used for ethanol is not edible, so government subsidiaries were the only way to get folks to grow it. Because the market wasn't there yet to support what they envisioned.
So they paid higher amounts for the non edible corn to get the farmers to make the switch. If you will remember, this then created a International food crises. It also created a huge problem for livestock ranchers. Because there was also a shortage of grains for feed. This effected the cattle, swine, and horse industries greatly.
In KY folks would just leave the gates open to let their horses out, because they could not afford to feed them anymore. In TN, folks would come out of livestock auctions to find animals tied to their bumpers. Food prices in general spiked as well.
And the third world faced starvation on a new level, because of this new food shortage, which came about from our governments intervention. Retailers like Costco were limiting rice purchases.
But that is all so long ago. Now they want to push corn based E85, and make it mandatory for every vehicle to be able to run on it. The fact that it will again create a global food shortage has no bearing on their ideas. They want to be green, even if it kills everyone.
The fact that ethanol decreases gas mileage doesn't matter either. Because as it is more and more apparent, there is no such thing as a bad Government idea. If it didn't work before, obviously they simply did not spend enough money on the program to make it succeed.
It would be nice if they would decide which energy source they would like to use. The auto industry works on electric cars, the government decides it wants ethanol. The auto industry works on ethanol, DC decides it want hydrogen. And so it has been going for the last decade.
The only thing they seem to agree on, is only privileged government folks should have the choice to drive SUV's and trucks. For the rest of us, they will decide how big it will be.
They will regulate Ford out of business, and between regulations and Tariffs, try to do the same to imports.
Sunday, July 19, 2009
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