they lied to us.
obviously, it's not the first time.
we were told that corn-based ethanol would make the gasoline prices lower. and i guess it did, for a moment, as we recovered from the damaged refineries of hurricane katrina. but the effects of the weather were seemingly excluded. how? in a world thinking of climate change, this was left out?
ethanol is only about 6% of our transport fuel, but is expected to go up to about 20%, or so i've heard. this means that when we have bad weather, like in iowa, and crops are damaged, our gas prices will shift. this is separate from the cost per barrel of oil of which we are already obsessed.
we don't know how much corn has actually been lost from last month's floods. what we do know is that corn supplies have shrunk, and the simple economics of that means that prices will rise.
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