We, as a country, are trying to get away from the stranglehold the oil producing nations seem to have over us. The current $3/gallon price of gasoline is putting a dent in all of our budgets, and the search for alternative fuel is on. Now, I believe that once an ideal storage system (read that – a better battery) is created, we will all be better off as wind and solar energy will gain favor. But, meanwhile, I hear a demand growing for “home grown” fuel in the form of ethanol, created from corn (or other grain). This scares me. It’s not too tough to see that any large use of this piece of the food chain will have a ripple effect on the rest of the system. First the cost of all grains will rise due to the increase in demand. Then the cost of any grain-fed livestock will rise as well. We will have a solution that’s far worse than the original problem. I welcome any view to the contrary.
Here is the futures chart for corn, a scary picture to say the least.