Hi Gian, Wayne
On the price of Gasoline, Crude and the US$$
Have to do some work on this, I basically agree with your "general comment" as I mentioned.
BUT....I was paying 0.99 per gallon back around 2000 !!! That is a 4x increase to today's price !!! That is clearly not inflation. USD had basically been in a range of 75/80 to 90/100 for years/all back to 1991 with the highs to 120 may 2000 to may 2002 time frame. So, I don't see the USD variation accounting for a four fold increase in gasoline price. I do not recall gasoline price before 1991.
Now on to Ethanol:
Wasn't the Bob Dole subsidy finally killed off !!??? But I don't know that/if the blending requirements were changed. Things seem to have been pretty quiet on that front, and the price of Corn is up. Seems the farmers are happy with the present 650 area as none have been posting since we got out of the $3 range .......
Is Ethanol/Corn currently supporting the price of gasoline ??? Another day .......
On Gian comment: Agree completely. Return on investment/subsidy is too small to justify.
Continued basic research at a sensible level is warrented - as long as it's not just rewarding "fund raising buddies" as Wayne mentioned.
Some examples:
If say Electric power generation could be advanced the way the Computer chips have (compare the 8080 of the late 70's to those available today). There a subsidy to "jump start" an industry makes sense.
On Solar:
I don't know the physics of Photo Voltaic cells that well, nor do I understand much on the limitations of the materials. More sensible research/subsidy may be warranted and productive. BUTTTT ...i am getting the sense that "watts per sq. inch" that can be generated before serious thermal problems develop may require plastering the entire surface of the earth with solar panels to meet today's energy needs !!!! Maybe someone has some data info on this ???
Now, for one that I do know about === The burning of "wood chips" for electric power generation !!!
I will do a separate post on that "fiasco". A plant was actually constructed in Burlington Vermont, maybe with some "earmark money" from their Communist Senator Patric Lehey !! Fortunately the plant was built to burn both wood chips or Natural Gas.
Enough for now ....
Keep the comments/thoughts coming - these discussions can be both educational and fun !!!!
Thanks Lee
