Ethanol and Gasoline
Ethanol and Gasoline: There have been lots of Democratic presidents and governors with whom I have not agreed. Biden is clearly one of them. But where the Biden regime stands out is in their sheer incompetence. I don’t think the cloud has enough bits for me to list all of the moronic moves of this regime. But the one that was announced on the day I am writing this (April 12th) is right up there in the moronic top 10.
In order to “save the average family about 10 cents a gallon,” the regime announced today a plan to mix 15% ethanol into gasoline over this summer instead of the typical 10%. The price of oil as of today has risen 22% this year so far. The price of corn however, has risen 33%. Furthermore, there are many indications that food and grains will be in short supply around the world this year and that people in many countries may face hunger and starvation. Biden doesn’t care however and wants to make fuel out of our corn. The price of corn was up on the announcement today. Coincidence? Of course not. That ethereal 10 cents a gallon savings will likely be eviscerated by an increase in the price of corn from additional demand for fuel. Also, Ethanol has considerably less energy density than gasoline. Your miles you can drive on a gallon of ethanol will be about 1/3rd less than on that gallon of gasoline. So, even if you save 10 cents at the pump, you will travel less miles and your savings per mile will be zero.
Oh yeah and one more thing. Ethanol is corrosive. Too much of it in many cars, particularly older ones, can cause fuel lines and other parts to degrade and leak. This can cause engine damage or a fire. It also turns to water if it sits in your gas tank too long which is a bad thing. That’s why it is limited to 10% now.
Food costs up. Food scarcity increased. No actual fuel savings. Damaged cars and fires. All this for a press release to pretend they are helping.
Brilliant. Bloody brilliant.
The Real Inflation: As I write this, the government just released the inflation number for March. It was 8.5%. It is actually much higher. The Consumer Price Index (CPI) was established prior to World War I and has been modified many times since. In the last 40 years, the modifications have been made to get the inflation number lower. Take out those volatile components of food, energy and housing, they say. You know, the only things you actually need to buy. They did this because things like Social Security and Medicare and the indexing of tax rates are based on the CPI. So, if it is lower, it helps the government.
Most actual people spend way more on energy housing and food than the CPI calculates. Gasoline (or Petrol for you Brits reading this) is only 2.8% of the index. Food and drink are only 15%. Rent is about 8%. This is why the Fed’s “preferred” CPI index was only up 5.4%. It doesn’t include the stuff you actually must buy.
According to various analysts I follow, the “real” inflation for a real person is much closer to 14% right now.
Go ask your boss for that raise. I wish you luck.