Marxist of the Week: Environmental Protection Agency (shutdowns Texas’ Plea)

This from the International Herald Tribune:

“The Environmental Protection Agency has denied a request from Texas to temporarily reduce ethanol requirements for gasoline in hopes of bringing down corn prices.

A federal energy bill passed in December requires that 9 billion gallons of ethanol be blended into gasoline from Sept. 1 to Aug. 31, 2009. Perry asked the EPA in April to drop the Renewable Fuels Standard requirement to 4.5 billion gallons, saying demand for ethanol is raising corn prices for livestock producers and driving up food prices.

“I am greatly disappointed with the EPA’s inability to look past the good intentions of this policy to see the significant harm it is doing to farmers, ranchers and American households,” Perry said. “For the EPA to assert that this federal mandate is not affecting food prices not only goes against common sense, but every American’s grocery bill.”

I have to agree with Governor Perry on this one. If it was a natural market increase in demand for ethanol then Texas would have to deal with it. Since this is artificially done by the government there is no reason for it. The EPA probably said no because most states would follow suit.

What does this tell us? This shows that the market demand for ethanol is fake and since the government has subsidized ethanol production that no one wants, they have to force people to take it.

The rest of the article can be found here.

~PCCapitalist

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Published in: on August 7, 2008 at 4:14 pm  Comments (1)  
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One CommentLeave a comment

  1. It does not matter which system you use as long as you tested it with demand and decided that it works for you. If you got demand, you need to use it accurately and follow what it says. Suit has to be executed with ethanol requirements.


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