Ethanol Starvation: Biodiesel Inflation
Starvation by Biofuels Ah, the absolute certainty of the Law of Unintended Consequences. In a nutshell: Food prices are rising because – surprise! – the demand for corn, soy and sugarcane/beets to make ethanol and biodiesel is driving up the cost of these basic food commodities. Quoting from The Wall Street Journal (my favorite newspaper): http://online.wsj.com/article/SB117608539258763747.html?mod=world_news_whats_news Soaring prices for farm goods, driven in part by demand for crop-based fuels, are pushing up the price of food world-wide and unleashing a new source of inflationary pressure. The rise in food prices is already causing distress among consumers in some parts of the world -- especially relatively poor nations like India and China. If the trend gathers momentum, it could contribute to slower global growth by forcing consumers to spend less on other items or spurring central banks to fight inflation by raising interest rates. …And, on the more human side: