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248 comments on DrumBeat: February 25, 2008
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248 comments on DrumBeat: February 25, 2008
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GAIA Host Collective
David Pimentel - Corn can't save us: Debunking the biofuel myth, link above.
David, David, all this has been said before, many times over. Why do you, and we, keep repeating the same old crap over and over and over? Simply because it is true? No, that is not a good enough reason. There has to be another reason we keep beating our heads against the wall about the terrible tragedy of our very stupid ethanol program. There must be another reason but for the life of me I cannot figure out what it is.
Ron Patterson
The answer is simple -- people in general are "magical" thinkers. In our enlightened age people continue to believe in the equivalent of the tooth fairy as an explanation for most phenomena. Most people couldn't tell how we know the earth goes around the sun, or why there are lunar eclipses. Almost no one has any concept of "entropy" -- and vanishingly small numbers have any idea about various forms of energy. Virtually everyone is completely baffled by any explanation involving calculation, and almost no one will sit still long enough to even try. And I include all those good-hearted people who only want to help make the world a better place, and who have been to college.
Yesterday I was at a friend's house dividing up packages of a frozen pig that we had bought to share. For a while we left the freezer door open to get at the packages. I asked my usual trick question -- "how long will it take to cool down the kitchen if we just leave this freezer door open?" And of course, the answers were the usual total misunderstanding of how a freezer works.
People spend their money on the lottery, believing it to be an "investment", and they continue to spend money on courses that teach them "think and grow rich" or "pray and grow rich."
Walt Disney has bridged the gap between the medieval world and the petroleum world-- and in the process, has capture the modern mind.
Magic and power is what it's all about. Rational thought is a deviant form.
You're lucky they weren't a bunch of engineers or before you could stop them the freezer would be up on bricks with the back side sticking out the window and polystyrene foam and tape all strapped up around it. :-)
For better or worse, most of my friends don't have engineering degrees. The person in question has a PhD in English.
But you are right -- there are little nests of geeks among us, and they are the ones who have created technical progress, despite all odds.
Somehow, the process of rational thought has to be moved from the geek world to the "real" world. I don't have a clue about that, since the forces enforcing magical thinking are in charge of education and the media, and are so much more powerful than anything I have been able to do. Not much has changed since the days of the medieval Church that enforced illiteracy -- except that these days they are so much more clever, and have convinced us to choose illiteracy and innumeracy.
I dunno. There are some who would say "geeks" are the ones who got us into this mess.
No man is an island entire unto itself, and nothing exists in a vacuum.
The geeks played their part, as did the scholars, researchers, philosophers, politicians, lobbyists, advertisers, corporations, media, religion, and the vast, unwashed, blissfully ignorant masses.
We haven't been able to wrap our heads around all the various issues, structures, and processes for thousands of years.
Our system is unmanageably complex.
And there is also the problem of rational thought. Humans may have the capacity to be rational, but they do not always behave that way. Humans, inevitably, will do emotional ("irrational") things as well as rational things.
The human mind is good at not seeing the gaps and boundaries.
How often do you notice the blind spot in your retina?
How often do you notice the edges of your visual field?
Answer: almost never.
We are in constant denial of our every limitation. Why isn't each of us an expert in everything?
We don't question. Instead we have invented a beehive system where each of us is a "specialist" in some narrowly focused aspect of our hive works. One of us is a "politician, lobbyist, advertiser, corporate animal, media maniac, religionist", etc. and yes, even a techno geek.
The geek is no better or smarter than the rest of the worker bees. None of us can see when stuff slips past our blind spots. For example, most techno geeks are blind to social interactions. Dilbert can't see when the management is beating him down yet again. Dogbert wins every time.

____
(click to enlarge --warning, won't work for body parts)
It is not really all that complex. Many are astounded by the results of the process and see complexity while the process itself is actually pretty simple. The ecosystem seems complex but the process that gave us the ecosystem and the diversity of life is not.
Those that are emeshed in the matrix of the technosystem with their specialized functions are truly amazed at the seeming complexity of it all. This perceived complexity supports magical thinking.
geeks attempt to solve whatever problem is put in front of them
they tend to be under-represented in the class of people who prioritize the problems
I don't view it as unreasonable to have a "default" belief in progress, since empirically it has been what's happened in recent memory: My grandmother told stories about life from just before WWII, through the blitz and in to postwar deprivation. My mother had a better quality of life. My sister and I have had even better lives (so far). I'm an educated computer scientist/engineer, and I personally wouldn't bet against pulling a technological rabbit out of the hat. But until I see a multiply verified, production scale rabbit I'm planning for the possibility of a severe energy and resource crunch.
The two things I find most worrying is that (i) people in general won't entertain even the possibility that things may be heading for a crunch, and (ii) almost everyone these days regard it as more important to win an argument than figure out "the truth". Although it'd be disappointing for an engineer not to figure out theoretically that the fridge won't cool the containing room, the unforgivable thing would be to not go grab a thermometer to validate whether a claimed cooling of the room was occurring but just maintain one's argument about what must be happening.
The mistakes are in thinking that progress is inevitable and automatic, in thinking that progress is always a totally good thing (instead of it sometimes being a mixed bag), and in thinking that progress is a one way street, that regress is impossible. Most people operate assuming all three of these are true, but they are not.
This is the most astute observation I have seen on this site. Ever.
Read some thoughts on "progress" from Wendell Berry in this excellent essay about his work:
http://www.ovpes.org/2003/Collins.pdf
And here I thought it was just common sense... and common knowledge.
Crap. We *are* in trouble.
Cheers
Kurt Cobb's just written an article about that mindset - http://resourceinsights.blogspot.com/. Quite a good read.
Where in the room would you hold that thermometer, and for how long would you take readings?
The reality of the situation would be very complex, but it was (presumably) supposed to be a simple demonstration to show how little people apply the basic notion of conservation of energy to the world around them - for example, a large steel and concrete structure being turned mostly to dust by it's own gravitational potential energy...
That's a little over the top, but I think you get the picture.
People generally think that cold and heat are substances that stoves and freezers make. They don't think of a unified theory of heat, not even on an intuitive level
I think I'll hold my thermometer up against the condenser tubes of the refrigerator. :-)

My comment was simply that although it's disappointing when people get arguments based on physics and maths wrong, it happens. I manage to confuse myself in the area in which I'm a highly educated expert every so often. The most fundamental thing is to actively investigate to see if you're right or wrong, and if you turn out to be wrong rethink things. That's what's good about all most of the stuff at the oil drum (ELM, etc): it's based on careful reasoning but people are looking for confirmation/disproof in real world numbers.
Me, if I had thought the refrigerator would cool the room, I'd go to the middle of the room with the thermometer and wait half an hour. If there was no noticeable effect on the temperature I'd be forced to rethink things. (Incidentally, I'm not a physicist but I think it's 2nd law of thermodynamics not conservation of energy that applies here.)
I agree, but my questions were rhetorical. As step back pointed out, you could hold the thermometer anywhere. My point was that the example should be thought of in less complex terms - it was just a simple illustrative example.
"(Incidentally, I'm not a physicist but I think it's 2nd law of thermodynamics not conservation of energy that applies here.)"
The 1st law of thermodynamics still applies to the 2nd law...
It's also the law of inefficient heat engines (Carnot engines) that applies.
The refrigerator is less than 100% efficient. On first look you might assume that the coolness it produces is balanced by the heat emitted from the condenser coils. But not so. The compressor produces additional heat. So do accessories in the refrigerator like lights, defroster mechanism, fans, etc. So the refrigerator is a net heat source, with or without its door being open. :-)
The geeks (and I number myself among them), who are atypical in their pursuit of technical excellence, have contributed tremendously to the problem. They have given these "magical" devices to vast numbers of people who don't understand their principles or the full consequences of their use. In fact, they themselves, in their narrow focus on making and creating things, do not understand the systems into which they inject these devices and cannot apprehend the full consequences to the world when the widget they have worked on multiplies into the millions and billions. The humble refrigerator and air conditioner both have produced vast quantities of CO2 and affected the development patterns of suburbia on a large scale. And even knowing these things, it seems unlikely that the geeks would stop what they are doing, not when there are so many rewards to be made from it.
The technology used in everyday life has advanced so far from anything most people can understand, that they have become used to "magic". There is not much difference between the things so many do all the time to make things happen, and the kinds of things that are used in "Harry Potter".
I do this, and that happens - I do not know why. I move this mouse thing and click on the pretty icons and stuff happens. I say a couple of words and I can talk to someone on the other side of the world through a little thing in my ear. Is that so much different than waving a wand and speaking magic words?
In my opinion it doesn't matter - it all has to do with access to excess energy. That in turn allows enough excess food production capacity that large parts of the society can engage in non-food production pursuits, like science and engineering. Eventually that trend will reverse, the stuff will fail and not be replaced, and the magic of technology will become a memory of past glories.
It's just the conversion of oil into magic.
great laughs, thanks.
Today I just explained the simple concept of turning off the fridge in winter and keeping your beer on the balcony and some kind of box for butter and iceberg lettuce and meat... What about global warming I was asked?
Hmm. It was 24 degrees yesterday in the Grisons (Switz. - and not! in the South.) and in my own flat, with the radiators turned off, I was sweating in a tank top and shorts and cursing the sun. (All the curtains are removed in the winter. The place was built to get max. sun heat, it is a kind of greenhouse, and the *building* is heated, I’m on the top floor, there are pipes with hot water in them in the floors etc. that can’t be turned off. It was built in 1996.)
Last January was even more spectacular. Hotties in swim suits are now a mid-winter staple. Sure, the press gets into it.
The official nos. are 1.5 C rise since 1900. (Near as dammit.) For the whole country. From top to bottom, from valley to peak, town to forest, south (palm trees) to north (fir and rock, lichens..) Micro climate pockets have undergone spectacular changes.
So I hmmmed. No way you can keep 100 dollar a pound bison meat on your balcony or in your garden in the "winter."
Why in the world would you be putting a pig in the freezer? A pig wouldn't feed ONE family, much less two. And, Veggies? what about veggies? You can't live on meat, alone, even if you could put a whole year's worth of meat in a freezer. And, what about next year?
Shouldn't you be using that time to plant a garden? And, a fruit tree? That's much more efficient than feeding pigs.
Ol' "Doomer" (100 million is the max that America can support) Pimental's argument doesn't make any more sense than mine just did.
We're not going to replace ALL of the energy needs of the country with biomass. We, also, have Wave, Wind, Waste, Nuclear, and Solar. What we ARE going to do is replace some of our oil usage with biofuels. It will help out a lot in the next few years. Kind of like that pig is going to help out next month. :)
Great question -- and cuts to the heart of the modern dilemma. Why would anyone freeze meat to preserve it, unless they lived at the North Pole? Because we can, of course. It's easier than canning or smoking or salting -- and each of those technologies has adverse consequences. Here in the northwest, sun-drying the meat is out of the question.
And why would anyone eat meat anyway? I have become more or less convinced that Permaculture and its varients are the proper way to live in most of the temperate world -- a balance of animal and vegetable husbandry allows a reasonable population density without depleting anything. The real problem is factory farming, factory pigs, factory chickens -- the purpose of that mode of "agriculture" is to extract a profit and externalize the costs. Factory farming is mostly just a way of turning petroleum, fossil water and topsoil into food and money, and as we have seen over the last 40 years or so, it is becoming a disaster, because there is no closed loop to recycle nutrients, and especially because it uses more water than exists on the planet.
Simply because it may be a very healthy diet.
Though it is peripheral to your main point, I would just like to point out that this is false, and that there are documented instances of people living on meat alone for extended periods, and in fact thriving on it. In fact at least one entire society ate pretty much nothing but 'meat' (fish and seal) - the Inuit.
Maybe it's all those advertisements on TV with some guy talking to a bunch of children talking about how this new hulking SUV is "green" because it can run on E85 and is a hybrid? (The E85 negating the 2mpg gain from it being a hybrid?) Considering they pay a large portion of my salary, I'll refrain from naming names.
Or maybe it's because of those guys in Iowa, wanting to boost grain prices by pushing bills that force consumption of ethanol? (And our shrub who pushes the same thing?)
Or maybe, for some strange reason, it's because that the current American "consumer" (not citizen) actually believes all of this ethanol hype?
[sarcanol]On the other hand, if you were evil, you could view ethanol as a good thing. It drives up grain prices, which causes demand destruction in poor countries. Of course, those people would be starving anyhow, so it's all OK, right? [/sarcanol]
The sad thing about it all, is once you've sold people that corn-based ethanol is a crock of horse excrement, they start blathering about how cellulose-based ethanol will save us. Switchgrass... Wouldn't they do better with industrial hemp or something? Oh wait, Reefer Madness. Nevermind.
Silver BB's.... Along with a few plastic ones painted to look silver..
~Durandal (http://www.wtdwtshtf.com)
Horse excrement makes excellent manure, and is a good fuel source when dried.
Horse manure also makes good doomer anti ethanol posts on TOD. As long as doomers refuse to recognize the real world situation with ethanol, they will forever be in a funk as ethanol continues to expand. Ethanol is an effect of Peak Oil not the cause. Food prices are up due to inflationary monetary policy, Peak Oil and bad weather in the case of wheat which, by the way is up the 60 cent limit today on the CBOT. The ignorance of knowledgeable people who understand Peak Oil when it comes to ethanol is unbelievable. If ethanol is as bad as those who hate claim, it will fail. By the way that awful SUV burning E85 saves more fossil fuel than a Prius because it gets such poor mileage. In the Midwest burning E85 gives those whose income is based on corn at lot of psychological satisfaction even if it costs more. When you produce your own fuel and then read doomer porn it's very satisfying. The Iowa economy is booming and it is flooded with ethanol. I think that is the real bitch of those who hate ethanol. All Iowa is doing is using the ELP model so frequently held up as the ideal. We are economizing on transportation by consuming corn locally to produce ethanol. Isn't that what ELP is all about? And it works.
I'm happy for Iowa. My daughter lives there.
Ethanol for fuel still sucks. And if we stop the government subsidies, it will fail.
'BioFuel Reports Construction Delay'
Building anything in America, besides military hardware, is getting much more difficult. It isnt only the poor condition of the US economy, but the shortage of materials and skilled labor. So, why are we squandering our scarce resources on BioFuel plants?
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=PR&Date=200801...
...snip...'Commenting, Scott H. Pearce, the Company's President and CEO said, "We are obviously disappointed by this delay. Unfortunately, despite an admirable degree of high level management attention at TIC, construction at both Wood River and Fairmont have experienced and continue to face challenges. These have largely been due to the still very strong industrial construction market and the resulting competition for personnel and material. Until recently, it was believed that most or all of the time slippage in particular aspects of the job could be made up. However, delays in the delivery of large vessels, pipe and steel, virtually all of which are now finally on site, and continued difficulty in obtaining and keeping skilled construction labor, has forced TIC to revise their schedule. We remain confident in the expertise and dedication that TIC and Delta-T continue to apply to the project and are impressed with the depth of their commitment to delivering top-of-the-line facilities."...snip...
Ethanol has only 2/3 the energy per unit volume as gasoline. For Ethanol to "succeed", the price of ethanol (meaning E85) at the pump must be no more than 2/3 the price of gasoline. When gasoline sells for $3.00 per gallon (or there abouts), that means E85 must cost less than $2.00 per gallon (mol). Besides, burning E85 doesn't result in very much reduction in FF use (if any), it only means that the FFs burned include coal and natural gas, not just oil. Since coal and natural gas have been less expensive than oil lately, the economics results in relatively low costs for ethanol production. As the prices for coal, natural gas and fertilizer are increasing, it would appear that the cost to produce ethanol will approach the reality as seen in calculations of EROEI. Take away the ethanol subsidy and let's see how long those farmers will keep putting E85 in their tanks (or anyone else's tank for that matter).
E. Swanson
We've already seen in the link I posted on a prior thread that tests conducted by N. Dakota Univ, and Mn State (using EPA cycle) show that ethanol can deliver BETTER fuel economy in IC engines than straight gasoline.
It's all in the OCTANE. Admittedly, these results were with mid-level ethanol blends; but, wait until you see the new engines with DI, VVT, and VRT. The forerunner (though without VRT) will be in the chevy HHR this fall. My bet is you'll be down to less than 10% difference between unleaded, and E85.
Don't live in the PAST, folks. The World is a'changing.
Makes no difference there is still 60 to 80% FF fuel embedded in each gallon.
And 80% of the energy 'lost' as heat
FF good for heat, bad for motion
Yes, engines designed for higher octane fuel can deliver better conversion efficiencies. However, in engines designed primarily for regular gasoline, there is no advantage to running higher octane fuel. But, your comment was regarding what you called "mid-level ethanol blends", perhaps E10. Since I don't have your link available, I think you are probably blowing smoke regarding the gasoline mileage of E85, since the higher octane of E85 has little impact on conversion efficiency when used in an engine optimized for regular. Comparing higher octane E85 with unleaded 89 octane regular is an improper comparison if you are going to specify an engine design optimized for high octane.
Ultimately, there's less energy in a gallon of E85 than there is in a gallon of regular gasoline and it's the energy which makes the car move. The miles per unit energy are likely to be quite similar, but that's not the same thing as miles per gallon.
E. Swanson
I don't need to blow smoke; I've got the facts on my side.
http://www.rhapsodyingreen.com/rhapsody_in_green/files/optimal_ethanol_b...
Study showing 3 of 4 cars got better mileage with ethanol blend.
Speaking of ignorance and manure...
First, when has anyone on this forum -- or anywhere on the planet -- said that ethanol causes peak oil?
Second, your assertion that grain prices are being driven by inflation fails simple economics. In this scenario, farmers being squeezed by higher input costs (and hence lower margins) would be planting fewer acres thus resulting in a decrease in supply and higher prices. Of course, this is not reality. Farmers are planting more acres, but prices are still increasing because of higher demand due to ethanol subsidies. True, wheat is higher because of crop losses in AU. However, it is quite likely that even more wheat acres would be planted elsewhere to compensate if it were not for demand for land for corn.
I'm not a doomer. But the day we poured food into our tanks I thought the doomers had a point.
Well one can’t eat coal or drink oil.
Using it to power harvesters, transport, irrigation - plus fertilizers, conditioning - and so on - but not directly for driving a SUV or a tractor to go the county fair, or whatever, has no moral weight, can only be condemned thru very complex analysis. (I personally don’t like to see ‘food’ powering rich US drivers when between 10 and 20 million children die of hunger each year, many now under US domination in Iraq, etc. but that is my own emotional sensitivity.)
It is the Export Land Model. The US has corn and now prefers to keep it, some of it, and use it as it sees fit. Does it make sense from an analytical pov? Does it make trade smoother, better for all? I think not. Did the Saudis exploit their oil riches to further development in their country, and/or the good of all? Not. Did the IMF/WTO help African countries with their lending? Etc.
Don't forget all that water.
A CSP plant cant be that heavy, anyone think it would be possible to make it float and power and old steam engine? Not got far to go for heat rejection. It would be like using OTEC and CSP together
I'm sure there's plenty of demand for shipping high volumes of liquids around the sunny parts of the world. Add a few of those kites for when you have lost the sun and cruise the evening winds.
"By the way that awful SUV burning E85 saves more fossil fuel than a Prius because it gets such poor mileage."
Every 10 gallons of ethanol has 6 to 8 gallons of FF imbeded in it. so a prius can go much further on 6 gallons of Gas than a 15 MPH SUV can on 10 gallons of ethanol with out the 6 gallons of FF considered removed.
For gosh sakes let's be Practical.
If the human race is as bad as the doomers say, it will fail.
I bet the Midwest was really booming during the agriculture bubble caused by World War I, when the government got farmers growing on every unsustainable acre. How did that look twelve years later? Dust in the wind.
That bubble collapsed almost immediately, in 1920-21, upon resumption of European harvests.
The reason is, Ron, that you know it, I know it, many others know it too, but the corn-ethanol scam is still continuing. Your tax money at work.
The plan to switch the nation from gasoline and diesel to ethanol came after other failures such as ridding Iraq of weapons of mass destruction that they did not have. Then there was talk about trying to reform Iraq to get oil to the Iraqi people there because Sadaam was corrupt. We had enough corruption in America as evidenced by Haliburton open ended no-bid contracts to develop Iraqi oil for Iraqis. There were a number of major oil service contractors including Schlumberger who could have done that type of work. How did a company that Dick (Tricky Dick) Cheney owned a large block of shares in get an exclusive contract without bidding for it? They were calling Sadaam corrupt as if they were not corrupt themselves. It was hypocrisy. The U.S. taxpayer being asked to subsidize Iraqi oil production while militant Islamicist militias took over the place eliminating minority Christians as the U.S. oil industry continued in decline. Would have been better to subsidize energy projects in the states instead of needing half a trillion dollars to try to do it in Iraq. If instead Exxon and others were were given a chance to bid on half a trillion dollars worth of energy projects for the United States we would not be seeing the dollar getting trampled by monetary inflation.
And we all know the good tooth fairy is magic.
By the same token, any one person with sufficiently advanced technology is indistinguishable from a god. (Anybody watch StarGate?)
"...Consider a simple example: the Atwood’s machine.
These efficiency limits are at a much lower levels than those theoretically possible at reversible (i.e., infinitely slow) rates.
For example, real power plants operate much closer to the maximum power efficiency than to the maximum possible efficiency.
So to recap: "It is at some intermediate efficiency (where one is “wasting” a large percentage of the energy) that power is maximized."
http://www.eoearth.org/article/Maximum_power_principle
The Maximum Power Principle H.T. Odum writes, "Systems prevail that maximize the flow of useful energy" [10, p.6]. He re-expresses this idea as, “Those systems that survive in competition are those that develop more energy inflow and use it to meet the needs of survival”
http://www.math.fsu.edu/~fusaro/DL/chapter7.html
And from experience we all directly suffer the effects of Clark's Fourth Law.
"In his 1999 revision of Profiles of the Future, published in London by Indigo, Clarke added his Fourth Law: "For every expert there is an equal and opposite expert."
http://en.wikipedia.org/wiki/Clark%27s_laws
and a possible curmudgeonly corollary for today's america can be edited a bit:
"Technology is indistinguishable from magic." Really, if people can't be troubled to know how things work, all tech is 'sufficiently advanced'. A neanderthal could, if transported here from the past, be driving an SUV, using a microwave oven and cell phone, and fitting into the economy perfectly well within a couple weeks aside from a few social gaffes, and would have as much idea how it all worked.
Most people see the world exclusively in magical terms, even though they would protest the use of that word. And there's the problem, for that is not sane.
Well, IMHO, we won't have to say it again next year because we only had one grain stockpile to destroy and we have now done it.
http://www.ers.usda.gov/AmberWaves/September07/Indicators/Charts/Indicat...
BTW-"approaching zero" is another term for "fat tails",
the lair of Black Swans.
And no one has ever seen wheat rise over $3 at the opening
bell.
http://futures.tradingcharts.com/marketquotes/W.html
mcgowanmc
Is this right? Every near future month limit up at the new .90 and the option for next months expiration placing spring wheat at $23 a bushel?
http://www.mgex.com/quotes.html?page=quote&sym=MW
Yep. With KC and CBOT locked .60 limit up.
At some point, someone in officialdom is going to have to comment on this.
And we could start hearing/seeing "hoarding" and "speculators"
blamed.
Desperation.
Thanks for keeping us up on this. It's coming home..... I doubt we are too far away from seeing folks buying up availiable bread and flour.
There was a great post on yesterday's DB, on why there will be a dramatic reversal in wheat prices if these price levels are sustained:
http://www.theoildrum.com/node/3662#comment-308299
What? The one about Britain, that grain-exporting behomoth, holding 10% of its production back?
The top 10 wheat producers (of which Britain is not one) produce around 68% of the world's wheat. Even if Britain brought its 10% online, and if the farmers could get enough fertilizer, and if they can get enough water, it would have precisely zero effect on wheat prices.
Yes, Australia had a drought. It is still having a drought. Most of the top wheat producers did not have droughts or too much rain. Weather-related problems are going to continue, as are fertilizer shortages, high fossil fuel costs, fresh water shortages, and topsoil erosion, not to mention the US ethanol mandate. As the chairman of POT said, if the world does not have a record harvest, there will be food shortages.
First they came for the Zimbabwes and Nepals, and I said nothing.
Then they came for the Indias and Chinas and Englands, and I said nothing.
When they came for me, there was no one left to tell.
Hello Theantidoomer,
It all depends on the prices and availability of inputs, and the increasingly risky JIT supply chain ability of these inputs to timely synchronize at the critical planting and fertilization periods.
http://www.hindu.com/2008/02/25/stories/2008022553070400.htm
------------------------------
Fertilizer crisis looms over State and Kerala
Factories reportedly going slow on production
Steep increase in fertilizer prices in international market
Fixing fertilizer prices and the quantum of fertilizer subsidy go hand-in-hand and a committee of Secretaries of the Union Government is stated to be pondering over this matter at length following the steep increase in fertilizer prices in the international market .The escalating prices of key inputs in the manufacture of phosphatic fertilizers (like sulphur for which the international price has reportedly increased from $ 100 a tonne in 2006 to $ 500 a tonne in December 2007) is stated as one of the factors for the delay.
The State has to also ensure the availability of railway wagons to transport fertilizer from the factories to all parts of the State...Sources told The Hindu that “the situation is alarming because the fertilizer industry as a whole has not taken any concrete step to produce and stock. We are anxiously waiting with our fingers crossed.”
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As posted before: when companies, hedge funds, and SWFs start NPK hoarding, plus millions of first world homeowners start gardening & hoarding I-NPK in response to rising food prices--lots of subsistence 3rd World farmers will be totally priced out of the market.
Recall the inflation adjusted $10,500/ton price in 1914 posting, and if the idiots continue their rioting, burning trains, stealing railroad copper, and exploding tracks--then the supply chain will break down even faster when combined with energy shortages to the fertilizer factories--IMO, the world needs to be rapidly ramping the recycling of the O-NPK with composting and moving manures from cities back to the growing areas. The 20:1 I-NPK/O-NPK concentration factor per lb will be a tremendous challenge if we seek to reduce the scale, frequency, and duration of machete' moshpits for optimal Overshoot decline.
Bob Shaw in Phx,Az Are Humans Smarter than Yeast?
A little more food for thought: Dimitry Orlov has written that the Russian home gardens is what was partially responsible for easing the relatively graceful collapse of the USSR. It would be interesting to know the %'s of I-NPK/O-NPK use, and if the Russian I-NPK used was provided at the wholesale farm cost or retail consumer cost. Or maybe the gardeners just stole the I-NPK from the collective farms for a high garden ERoEI & ERoI while the police basically ignored these acts. Beats machete' moshpits!
Makes one wonder: what is the best US I-NPK wholesale farm and homeowner retail pricing strategy to promote relocalized permaculture and O-NPK urban recycling, yet optimize industrial agro-yields and O-NPK farm recycling, and is transport FF-prices and the 20:1 factor critical to this pricing determination?
mcgowanmc... if you had to make an educated guess on this wheat business where do you see it going?
Historically at this point, the Gov't crushes the farmer.
Whatever it takes.
"The Food Security Act of 1985 states that U.S. policy is: (1) to foster and encourage agricultural exports, (2) not to restrict or limit such exports except under the most compelling circumstances, (3) that any prohibition or limitation on such exports should be imposed only when the President declares a national emergency under the Export Administration Act, and (4) that contracts to export agricultural commodities and products agreed upon before any prohibition or limitation should not be abrogated. Whenever commercial export sales of an agricultural commodity are suspended for reasons of short supply, but to a country with which the United States continues commercial trade, the Food and Agriculture Act of 1977 requires USDA to set the commodity price support loan rate at 90% of the parity price. The Food, Agriculture, Conservation, and Trade Act of 1990 contains contract sanctity provisions that place constraints on the embargo of agricultural commodities from the United States. The 1990 Act also: (1) provides for agricultural embargo protection that, if certain conditions are met, compensates producers with payments if the President suspends or restricts exports of a commodity for national security or foreign policy reasons, and (2) requires USDA to develop plans to alleviate the adverse effects of embargoes if imposed. The FAIR Act of 1996 requires USDA to compensate producers of a commodity, or commodities, if the U.S. government imposes an export embargo on any country for national security or foreign policy reasons, and if no other country joins the U.S. embargo within 90 days. Compensation may take the form of payments to producers or funds made available to promote agricultural exports or food aid."
Key-
(3) that any prohibition or limitation on such exports should be imposed only when the President declares a national emergency under the Export Administration Act, and (4) that contracts to export agricultural commodities and products agreed upon before any prohibition or limitation should not be abrogated.
Well, I guess we export every last seed and pay $10.00 for a loaf of white bread.
“Historical references are useless. We are breaking all the rules,”
It seems those who can afford to will limit their exports.
If you rely heavily on oil imports and have high inflation......
Hello Xburb,
From the link provided: Gavin Maguire, of Iowa Grain in Chicago, said consumers such as mills and bakers, who needed wheat, were “panicking”.
Damn: panic is king!
When it would have been so much easier to plan & mitigate years ago using the Hirsch Shifter & Carter Carburetor.
For any newbies, the Pres. Sweater Speech and Hirsch Report:
http://www.pbs.org/wgbh/amex/carter/filmmore/ps_energy.html
http://en.wikipedia.org/wiki/Hirsch_report
:-) once again Bob. Good one!
Yep, showing my age, 52! Back in the day, I lusted for a 69 Chevelle 396 convertible, but couldn't afford my first vehicle, a battered pickup, till I got out of high school. I still remember stopping my 10-speed to admire the car in the high school parking lot--royal blue w/two big white stripes down the hood & trunk. The lucky owner was pretty good at the wretched excess display of the full throttle, tire-smoking burnout to impress the girls. Nowadays, little gas & electric scooters get my attention.
Yeah when I consider how many hours I've spent freshening up old jalopies. We counted it up one time and there were a hundred or more through the years.
My 2 project cars sit neglected but my bike rack is real active these days.
Saw that Wally World (wal-mart) has an electric bike in their inventory now. They are absolutely going nuts with them in China. One young woman we met said she and her husband could afford a car but preferred to use their electric. He lugs the batts up the stairs at home or charges them at work.
Spring wheat did hit $25 dollars a bushel today. Folks will be driving 6000 lb. E85 SUV's to the store to buy $5 loaves of bread real soon. Wonder how many will figure it out? Yikes!
Bought a loaf of Orowheat Wheatberry bread today for $4.05 in Waldport, OR. I've bought artisan bread for over $4 before, but have never seen "corporate" bread this expensive, not even when I lived in Hawaii. Maybe it's time to revisit the economics of home bread makers?
Yep, bought a loaf of 12 Grain in Lincoln City @$4 last week too. Dusting off the old breadmaker as we speak.
Pending US wheat shortage due to exports
Wheat prices soared near their highest levels ever Tuesday on concerns that growing demand in Asia coupled with dwindling stockpiles could lead to a grain shortage in the United States.
U.S. wheat stockpiles have thinned as bad weather has battered crop after crop around the world, most recently in Argentina and India. The scarcity has fed seemingly relentless demand for wheat supplies, often at any cost. U.S. wheat exporters have sold more than 15 million bushels a week for seven of the last 11 weeks, well above the U.S. Department of Agriculture's weekly target of about 1 million bushels a week.
"We continue to export wheat at too fast a pace," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "You've got enough forward contracts overseas so the fear is that what you've got sold thus far is possibly more than you've got planted."
http://ap.google.com/article/ALeqM5jND4r3B-VBZu2Ogg2_yzjYnPIP8gD8UKDP581
During the famine years there was plenty of food in Ireland enough to feed double its population. Yes the potato failed but all other crops thrived. Under the system at the time Irish food was exported mainly to English markets but from they're found its way to many parts of the world. It puzzled many to hear there was famine in a land that had so much food to export. In normal countries it was usual to export food only after its population was fed. This was not the case in Ireland; during the period her food was taken away against the wishes of her people, usually at gunpoint and escorted to the ports under military guard. It was then carried away on ships leaving misery and starvation behind.
http://www.wolfetonesofficialsite.com/famine.htm
"You've got enough forward contracts overseas so the fear is that what you've got sold thus far is possibly more than you've got..."
This was Said by ???:
The Middle Eastern Oil Country
Or
The N.A.Breadbasket Country